Tax filing as a freelancer can be expensive and complicated. It’s easy to miss out on legitimate tax deductions for things like your home office, cell phone bills, or work-related travel expenses. The best solution for this is ongoing, high-quality accounting software. But most accounting software is usually designed for small businesses and freelancers who keep their business finances separate from their personal finances.
FlyFin Tax is an accounting and tax filing service that recognizes that many freelancers don’t segregate their finances. Even if they have a business checking account, freelancers can often deduct a portion of their rent, utilities, and other related expenses. The app is designed to help freelancers identify legitimate deductions so that they can easily file their taxes.
The software generates reports so that users can file their taxes outside of the software, or pay users to have a CPA file on their behalf.
Accounting and tax software for freelancers Generates reports to file taxes All paid plans include CPA advice
Included with standard and premium plans
FlyFin Tax – Is It Really Free?
FlyFin Tax offers a 7-day free trial. This allows freelancers to use the app to identify and categorize deductions. Users who upgrade to the Standard plan ($16 per month) can have a CPA file for their federal and state taxes as part of the price of the service.
What’s new in 2022?
FlyFin Tax launched just in time for the 2021 tax return season. The company offers innovative features such as quarterly tax calculators, data export, expense reports from CPAs, and tax returns prepared by CPAs (even for your non-freelance taxes).
The company uses artificial intelligence to identify potential expenses. They are constantly rolling out new versions of the AI to help different types of freelancers categorize their expenses.
Users who upgrade to Standard or Premium service levels are eligible to receive a CPA to prepare their state and federal tax returns.
Does FlyFin Make Tax Returns in 2022 Easy?
FlyFin radically simplifies tax filing for freelancers with a two-pronged approach to tax filing. First, the company specializes in finding tax deductions for freelancers. It uses AI to help freelancers find, verify and record all deductible expenses. It also generates reports related to income. This computerized accounting makes tax filing much easier in tax time. If users have a question, FlyFin allows users to ask a CPA for clarification.
Second, FlyFin Tax connects users with CPAs through the app. These CPAs can use the FlyFin Tax reports to quickly prepare tax returns for freelancers.
The service is designed to keep the tax burden on freelancers low.
Notable Features of FlyFin
FlyFin’s easy-to-use accounting technology and full tax preparation make the tool a standout for freelancers and other people who tend to mix their business and personal finances.
Tax returns prepared by CPA
FlyFin Tax users can have their tax returns prepared by a CPA. A tax officer collects all the necessary information via a Zoom call, so that the CPA can prepare a tax return for the submitter.
AI designed to detect and record eligible spend
FlyFin Tax has multiple algorithms “trained” to help different types of freelancers identify and record their deductible expenses. The company offers an app and sends notifications to users. Users can confirm charges directly through the app. If a user has questions about a specific expense, they can request a CPA directly through the app.
Quarterly Tax Calculator
FlyFin Tax has a quarterly tax calculator that generates estimated tax rates for freelancers. The app includes income and expenses so that users don’t overpay or underpay dramatically in any given year.
Related: The Ultimate Guide to Estimated Taxes for the Self-Employed
Option to export tax reports
Freelancers who want to file their own taxes (or use other tax software) can export reports that they can use to file their own taxes.
FlyFin Tax Notable Cons
While FlyFin is a great product, there are some drawbacks to using this app. Here are a few things freelancers should keep in mind.
Must upgrade to file taxes
Freelancers who choose to use FlyFin Tax will need to upgrade to the standard package to have tax return included in their app fees. The Standard services cost $192 per year, more than $100 more than the $84 annual Basic plan.
FlyFin covers almost all aspects of freelance accounting except mileage tracking. Freelancers will probably need to use an app like Everalnce or MileIQ to claim the correct deductions
FlyFin is an accounting service, but also includes the annual tax return. Therefore, the company charges an annual fee. The high annual fee may surprise some freelancers.
FlyFin Tax Rates and Plans
FlyFin publishes its prices as a monthly fee, but charges customers annually. Once the 7-day free trial is complete, FlyFin customers will be required to pay the full fee.
All plans include unlimited CPA advice regarding the deductibility of certain expenses. Users simply request a CPA rating for an expense, add a few details and receive a rating from the CPA.
Freelancers seeking help with accounting, but don’t need help with tax returns.
Freelancers and solopreneurs seeking tax filing and accounting.
S-Corps, K-1s and other multi-person entities.
How does FlyFin compare?
FlyFin Tax offers full-service tax filing and accounting, but prices are lower than the leading companies.
We chose to compare FlyFin Tax with full-service tax preparation services, but the price is very close to the price of TurboTax Self-Employed.
$225 federal, $50 per state
$199 federal, $50 per state
$1,000 + federal, $50 per state
$389 federal, $50 per state
The same tax preparer every year?
Is it safe and secure?
FlyFin Tax is a mobile-first technology company. It protects users’ financial information by connecting through a third-party technology called Plaid. Plaid only gets read access to a user’s account, so no money can be stolen through FlyFin Tax or Plaid. The company also requires multi-factor authentication and allows users to set up FaceID for their second form of authentication.
The company also keeps tax data safe and encrypted at rest. All “face-to-face” communication is done through Zoom, which is generally a secure platform compared to other forms of communication.
Of course FlyFin is an online tax company and that means that user information is always at risk. Users should evaluate whether FlyFin’s protections are sufficient to give users confidence in their data integrity.
Is it worth it?
FlyFin Tax is a screaming deal for freelancers who don’t want to file their own taxes. Costing less than $200 a year, the app solves most freelancers’ biggest tax-related problems. Doing your own tax return is not a difficult task. But figuring out whether an expense is deductible is a major headache. FlyFin Tax takes that headache away so freelancers can focus on growing their business rather than their taxes.
During testing, we were also very impressed with the quality of the AI in the app. It grouped trades so we could see a whole year’s trades in less than an hour.
Given the quality of the product and the level of service, we thought there would be price fixing or other unfair pricing schemes. However, it seems that the advertised price is the price for tax returns, even if you have additional complications, such as investments or rental properties.
This is an app that we highly recommend for freelancers who want to simplify their accounting and tax returns at a reasonable price.
View FlyFin here >>
Frequently Asked Questions about FlyFin
Why is FlyFin so cheap compared to other companies?
FlyFin’s business model is a “technological” first approach that is highly scalable. It is likely that the company will automatically generate most tax returns for its users and have a CPA review the return.
It’s also possible that the company currently has low prices to gain market share, but it may need to increase prices over time.
Can FlyFin Tax help me file my crypto investments?
At this point, FlyFin Tax users are required to generate their own capital gains and losses reports for their Crypto investments. They can use a tool like TaxBit to generate these reports. The users can submit their reports to a designated CPA through a secure document upload, and the CPA will account for these investments at the user’s return.
Can I request my stimulus check through FlyFin Tax?
Anyone who did not receive an incentive benefit in 2021, but is eligible to receive one, can claim the Rebate Recovery Credit. This credit increases the size of a person’s repayment. FlyFin Tax’s assistants will answer this question during a Zoom call, and if a person qualifies for the credit, they will request information about the stimulus check received.
I have not received the full amount for Advanced Child Tax Credit Payments. Can FlyFin Tax help me get the rest?
FlyFin Tax’s CPAs will ensure that all parents receive the appropriate child tax credits. They will request information about payments received so that they can claim the correct amount for the submitter.
Can FlyFin Tax help me file in multiple states?
FlyFin Tax allows users to file returns in multiple states. All state and federal filings are included in the price.
Does FlyFin Tax offer advance loan repayment?
In 2022, FlyFin Tax will not offer a refund of advance loans.
This post FlyFin Tax Review 2022 | Accounting and Taxes for Freelancers
was original published at “https://thecollegeinvestor.com/39598/flyfin-tax-review/”