What Claude (Anthropic) with web search answered for tax preparation software (small businesses) on 2026-10-18

Claude (Anthropic) with web search claude-opus-5 asked 2026-10-18

Coverage: Claude (Anthropic) with web search. Other engines not included.

The question asked, verbatim: best tax preparation software for small businesses

Brands named, in the order the engine gave

1. FreeTaxUSA recommended
   FreeTaxUSA - My default recommendation.
2. TaxSlayer Self-Employed mentioned
   TaxSlayer Self-Employed - Cheap, competent, and a bit more hand-holding than FreeTaxUSA if you want prompts walking you through deductions.
3. TurboTax Premium mentioned
   TurboTax Premium - Worth the premium price only if you want the QuickBooks/bank import to pull your expense data automatically, or you want the guided interview.
4. QuickBooks mentioned
   TurboTax Premium - Worth the premium price only if you want the QuickBooks/bank import to pull your expense data automatically, or you want the guided interview.
5. TaxAct mentioned
   TaxAct Business - Best value in this tier.
6. TaxAct Business mentioned
   TaxAct Business - Best value in this tier.
7. TurboTax Business mentioned
   TurboTax Business (desktop) - About $190 for the entity return.
8. H&R Block recommended
   H&R Block - Not the strongest DIY product for entity returns, but the best option if you want to start online and hand off to a human in a physical office mid-stream.
9. Avalara mentioned
   If you sell across state lines, that's a separate tool (Avalara or TaxJar) and a separate problem.

Sources the engine cited

The answer, as recorded

The right answer depends mostly on your entity type, so here's how I'd rank them: **If you're a sole proprietor or single-member LLC (Schedule C on your 1040):** 1. **FreeTaxUSA** - My default recommendation. Federal filing is free including Schedule C, state is around $15. There's no meaningful functional gap versus the expensive options for a straightforward Schedule C with a home office, mileage, and depreciation. Caveat: it cannot prepare entity returns (1120-S, 1065), only K-1s you receive. 2. **TaxSlayer Self-Employed** - Cheap, competent, and a bit more hand-holding than FreeTaxUSA if you want prompts walking you through deductions. 3. **TurboTax Premium** - Worth the premium price only if you want the QuickBooks/bank import to pull your expense data automatically, or you want the guided interview. You're paying mostly for polish and upsell-heavy UX. **If you're an S-corp, partnership, or multi-member LLC (1120-S or 1065):** 1. **TaxAct Business** - Best value in this tier. Handles 1120-S, 1065, 1120, and multi-member LLCs, roughly $110-$170, and state returns are often bundled rather than billed separately. This is the one I'd point most S-corp owners to. 2. **TurboTax Business (desktop)** - About $190 for the entity return. Pick it over TaxAct if you're already deep in QuickBooks, or if your return involves trusts/estates alongside the business. Note it's Windows desktop only and does *not* include your personal 1040 - you'd buy that separately, which is the hidden cost people miss. 3. **H&R Block** - Not the strongest DIY product for entity returns, but the best option if you want to start online and hand off to a human in a physical office mid-stream. Roughly $115 DIY, $250+ with a pro. **A few honest caveats:** - Entity returns (1120-S and 1065) were due March 16, 2026 for calendar-year filers, so if that's you and you haven't filed or extended, software choice is secondary to getting the extension/late-filing situation handled - the late penalty is per-partner/per-shareholder per month and adds up fast. - If you have an S-corp with payroll, inventory, multi-state nexus, or basis questions, DIY software is a false economy. A CPA at $800-$2,000 will usually save more than they cost. Software is the right call for clean, simple returns. - None of the DIY options handle sales tax compliance. If you sell across state lines, that's a separate tool (Avalara or TaxJar) and a separate problem. Sources: [Business.org small business tax software](https://www.business.org/finance/taxes/best-tax-filing-software-programs-small-businesses), [The College Investor - best tax software](https://thecollegeinvestor.com/15201/best-tax-software/), [FreeTaxUSA community - business return support](https://community.freetaxusa.com/discussion/comment/6119), [TaxShark - can FreeTaxUSA do business taxes](https://taxsharkinc.com/can-freetaxusa-do-business-taxes-w-examples-faqs/), [MoneyCrashers - TaxAct vs TurboTax vs H&R Block](https://www.moneycrashers.com/taxact-vs-turbotax-vs-hr-block-best-tax-prep-software/)

Near this answer

The same question, recorded on other dates: 2026-10-16, 2026-10-14, 2026-10-11, 2026-10-08, 2026-10-06, 2026-10-03, 2026-10-01, 2026-09-29, 2026-09-27, 2026-09-25, 2026-09-23.

tax preparation software, asked for other audiences: freelancers (asked 2026-10-18), nonprofits (asked 2026-10-18).

Other categories with a recorded answer: accounting software, accounts payable automation, audit management software, bookkeeping services.

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Answer Watch records what one AI answer engine said on one date, nothing more. Each page names the engine and the model, carries the date the question was asked, and lists the brands that appeared in the answer in the order the engine gave them, with the sources it cited. It is a measurement, not a ranking, not a recommendation and not a claim about the world. Brands that did not appear in an answer are not named on any public page. Coverage: Claude (Anthropic) with web search. Other engines not included.