Drake Tax Software Tutorial — Complete Guide to Using Drake Tax for Beginners (2026)
Learn how to use Drake Tax Software with easy step-by-step instructions, features, pricing, setup, data entry, and e-filing tips in this complete Drake Tax tutorial for tax preparers.
Introduction to Drake Tax Software
Drake Tax Software is a professional tax preparation and e-filing program trusted by thousands of tax professionals across the USA. It helps tax preparers prepare federal and state returns, manage client data, and e-file taxes accurately and efficiently.
Whether you are new to tax preparation or transitioning from another system, this tutorial will walk you through everything from installation to preparing your first return.
What Is Drake Tax Software?
Drake Tax is a powerful tax preparation and filing software designed for professionals who file individual and business tax returns. It includes tools for calculations, diagnostics, accuracy checks, and e-filing options — all built into one workflow.
Some versions run on desktop computers, while others offer web-based access through Drake Tax Online for greater flexibility.
Why Choose Drake Tax Software?
Drake Tax is popular among professionals because:
- Fast and accurate calculations for federal and state returns.
- Comprehensive form library including individual and business returns.
- Customizable workflow to match your practice needs.
- Built-in error checking and diagnostics to reduce mistakes.
- Integrated e-filing and client delivery options.
These features make it easier to manage tax season with speed and confidence.
Drake Tax Pricing and Versions
Drake Tax is offered in several plans based on business needs:
A robust version with unlimited individual and business returns — best for larger or fast-growing practices.
Focused on individual returns with optional business return add-ons.
Budget-friendly option letting you pay only for the returns you prepare.
A web-based subscription with the flexibility to work from any device.
Pro Tip: Always check the latest pricing directly on the official site because packages and fees can change over time.
👉 Official Drake Tax Pricing Page: https://www.drakesoftware.com/pricing/
Getting Started: Installation & Setup
If you choose the desktop version, download from the official Drake Software site after purchase.
When you first open Drake Tax, a Setup Assistant appears to guide you through the initial settings, including firm info and tax year setup.
Enter your tax preparer information, firm name, address, and EFIN details so returns are ready to e-file.
During setup, ensure all needed state tax modules are installed so you can prepare state returns.
Quick Start Tutorial for Beginners
To begin using Drake Tax:
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Open the Home Window
The main dashboard shows navigation options for returns, client list, setup, and tools. -
Create a New Return
- Click New Return from the menu.
- Choose the tax year and return type (1040, corporate, partnership, etc.).
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Enter Client Information
- Enter taxpayer name, address, and Social Security Number.
- Use auto-fill where possible to save time.
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Data Entry Screens
- The software provides category lists such as Income, Deductions, Credits, and Taxes.
- Click each category and enter information accordingly.
-
Review Calculations
- Drake Tax runs built-in calculations and diagnostics to check for errors.
-
Print or E-File
- When the return is ready, choose Print PDF or E-File to submit electronically.
📌 Note: Drake’s built-in Help system gives context-sensitive support when clicked within any screen.
Drake Tax Online: Web-Based Option
Drake Tax Online offers a cloud-based version of the software that works through your web browser. You don’t need to install updates manually — everything runs online.
Main Features
- Work from any computer with internet access.
- Automated backups and server-based storage.
- Direct e-file and reporting tools.
👉 Quick Start Guide for Drake Tax Online: https://kb.drakesoftware.com/kb/Drake-Tax-Online/18809.htm
Key Features and Tools in Drake Tax
You can import W-2s, Schedules K-1, 1099s, and other forms to reduce manual entry.
Before filing, Drake Tax checks for common errors and missing data to ensure the return is complete.
Prepare multiple state returns within the same workflow without needing extra modules.
Drake Tax lets you generate client letters, forms, and notes attached to returns.
Modern security options, such as multi-factor authentication, help protect user accounts.
Helpful Tips for Using Drake Tax
- Learn Shortcuts: Keyboard shortcuts speed up navigation.
- Use Support Videos: Drake offers instructional videos covering setup, data entry, and e-filing.
- Check IRS Updates: Tax laws change yearly — keep your software updated.
- Practice on Sample Returns: Before filing real returns, practice with sample data to build confidence.
📌 Official Drake Tax Tutorials Page: https://support.drakesoftware.com/Videos/
Preparing Individual Tax Returns (1040 Series)
Step-by-Step
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Enter Personal Info
Include taxpayer and spouse details. -
Report Income
Add wages (W-2), interest (1099-INT), dividends, and other income types. -
Apply Adjustments
Enter student loan interest, IRA contributions, etc. -
Claim Deductions and Credits
Standard or itemized deductions, education credits, and child tax credits. -
Tax Calculation & Review
Drake Tax automatically calculates tax, credits, and refund or amount due.
Electronic Filing (E-File)
Drake Tax supports e-filing to both federal and state systems. Before e-filing:
- Verify e-file passwords and credentials are set up.
- Confirm preparer information is correct.
E-file reduces processing times compared to paper filing and offers faster refunds when IRS direct deposit is selected.
Learning Resources and Support
Drake Software offers several ways to learn:
Join live webinars to learn setup, navigation, and advanced tools.
Short, focused videos are available for many software functions.
Updated manuals are released each year and can be accessed through your software or support portal.
Contact Drake’s support for help via phone or email when needed.
Conclusion
Drake Tax Software is a robust, accurate, and widely trusted tax preparation solution for professionals and small firms alike. From installation and setup to data entry, diagnostics, and e-filing, Drake provides tools that make tax season more manageable. Its combination of speed, accuracy, and customer support helps preparers focus on delivering quality service to clients.
Visit the Official Drake Tax Software page here for full product details and pricing:
👉 https://www.drakesoftware.com/products/drake-tax/
Frequently Asked Questions (FAQs) – Drake Tax Software
Drake Tax Software is used by tax professionals to prepare and electronically file federal and state tax returns accurately and efficiently.
Who can use Drake Tax Software?
Drake Tax is designed for professional tax preparers, accountants, enrolled agents, and CPA firms. It is not intended for individual self-filers.
Yes, Drake Tax offers a structured interface, built-in help options, video tutorials, and documentation that make it beginner-friendly for new tax preparers.
Yes, Drake Tax supports IRS-authorized electronic filing for federal and state tax returns, which helps speed up processing and refunds.
Drake Tax is available in both formats:
- Desktop version (installed on a computer)
- Web-based version called Drake Tax Online
Yes, Drake Tax includes a comprehensive library of IRS and state tax forms for individual and business tax returns, depending on the selected plan.
Is Drake Tax Software secure?
Yes, Drake Tax uses modern security measures such as encryption and secure login options to help protect taxpayer data and comply with industry standards.
Yes, Drake Tax allows preparation of multiple state returns within the same client file, depending on the selected package.
Yes, Drake Software provides customer support through phone assistance, online documentation, video tutorials, and webinars for users.
Yes, Drake Tax is widely used by small and medium-sized tax practices because of its flexible pricing options and professional features.
Does Drake Tax Software update automatically for tax law changes?
Drake Tax regularly releases updates during the tax season to reflect IRS rule changes, form updates, and software improvements.
Yes, users can practice using sample returns and training resources to become familiar with the software before preparing real client returns.
Is Drake Tax Software compliant with IRS requirements?
Yes, Drake Tax is an IRS-authorized e-file provider and follows IRS guidelines for electronic filing and data handling.
You can learn Drake Tax through official tutorials, webinars, and guides available on the Drake Software support website.
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