[Ntw6817]

Someone had suggested Drake as a cheap software for me as I’m preparing the returns for my friends and family. I have a question though, the site had talked about $20 per return. However, someone had told me it’s $20 per client. Meaning that the state and federal together costs $20. Can anyone clear up this confusion? Thanks!

[itsjustatest]

ya – dont use Drake.

AUD - 83
REG - 78
FAR - 69,73,79
BEC - 85

[Ntw6817]

What would you recommend? I only have a handful of clients. Under 20 and they're all relatively simple 1040s

[Anonymous]

This year I used Drake but I literally only had a handful of returns to prepare. I don't recommend Drake unless you've got a decent client base already established. I could see it being useful for putting out a professional appearance to a large group of clients with the use of their engagement letter tools and the like.

Like I said, I just don't think it's worth it unless you've already got a good amount clients. Unless I end up attracting a sizeable amount of tax clients out of nowhere, I plan to use TurboTax next year.

[Ntw6817]

Are you allowed to use turbotax as a paid preparer? Why would you say you need a decent sized client base? Also, what's decent size? If it's $20 per return (or client?) after the first 15, isn't it pretty cheap?

[Anonymous]

The total upfront cost for Drake is $300 for the first 15 returns and $20 for each additional return (a return is considered the use of a SSN, so even if one client has to file in 10 different states, the use of one SSN counts as only one return out of the first 15 used). TurboTax is way cheaper and yes you are allowed to use the software by purchasing a software download/cd (not sure how they send it to you) for your own purchase. I don't think the functionality of Drake is all that good when all you have is the standard 1040EZ.

It wasn't worth the time spent trying to initially learn how to make Drake function for such simple returns.

I would, however, recommend Drake if your clients were more complex in nature (Sch A/B/C). But for the run of the mill W2 clients, TurboTax is all you need IMO.

I guess it's just my preference.

[Isostasy]

I was also looking into this but simple business returns, it seems like proseries and Drake are the best ones for that. Fyi it also seems like you have to apply with the IRS in order to be able to e-file returns. I didn't know this until I was looking at softwares, and it looks like it takes around 45 days.

[Anonymous]

@ Isostasy: Yes you're right you do need to apply for an EIN through the IRS to e-file, which is kind of a pain ESPECIALLY when your CPA license has yet to be issued (this was my scenario this tax season). They make you get a live scan and all, which I didn't really have time for at that point in the year, so I ended up paper filing the returns I prepared with Drake.

[Anonymous]

For W-2 only returns, you could almost just use the forms online and manually type in your figures. 😛

But for more complicated returns, Drake is the cheapest that I've seen and I found it relatively easy to navigate. It took a little while to learn, but not too bad. However, I was working in a firm where we did hundreds of returns, so if it took me 10 returns to feel comfortable, that wouldn't have bugged me…but if your whole tax season is 15 returns, then feeling uncomfortable for 10 would be much more significant!

What TurboTax software are you all using that allows you to do returns for less than $20/return? I'm assuming you're not using the same TurboTax online that everyone uses to file on their own…? I'm not in taxes anymore, but still do a handful of (free) family returns, and would like to be able to use something cheaper than the online TurboTax, since I foot the fees for family members who are used to getting their return for free. 😛 However, I do 3-5 returns total for myself and family, so even though I loved Drake, it's not enough to justify $300 for “real” software.

[Author]

Replies