Drake Tax Online – What You Need To Know 

Drake Software has long been a trusted name in the tax preparation industry. It provides powerful features that help professionals prepare and file returns efficiently.

Drake recently introduced Drake Tax Online, a fully web-based version of its tax preparation software to meet the growing demand for flexibility, remote access, and cloud security. 

Drake Tax Online is built specifically for tax preparers and accounting firms and eliminates the need for local installations or manual updates. It allows professionals to work from anywhere, collaborate with clients in real time, and ensure data security. 

This comprehensive guide explores everything you need to know about Drake Tax Online before making an informed decision for your business. 

What is Drake Tax Online? 

Drake Tax Online is Drake Software’s fully web-based tax preparation platform, built for tax professionals who need flexible, modern tools to manage returns from any internet-enabled device.

It offers exclusive features, such as guided workflows, in-app messaging, flexible data entry, and more to make your tax process easier and efficient.

For other return types, users can quickly switch to a customized version of Drake Tax desktop with just a click, gaining access to desktop-only features. 

What are the Key Features of Drake Software Online? 

• Web-Based Flexibility – Access professional tax software from any device without installation, updates, or backups. 

• Customizable Packages – Build your own package with flexible pricing options and integrated add-ons. 

• Advanced Security – Protect client and firm data with multi-factor authentication, 128-bit encryption in transit and at rest, and continuous security updates. 

• Reliable Tax Compliance – Hundreds of return diagnostics help ensure accuracy and adherence to tax laws. 

• Easy Data Conversion – Free migration from previous professional tax software for a smooth transition. 

• Comprehensive Forms & Schedules – Supports all individual returns and selected business packages with full forms coverage. 

• Optimized Workflow – Follow a guided tax preparation process or navigate independently to suit your preferences. 

• Collaboration & Multi-User Support – Expand teamwork with multi-user collaboration and real-time data syncing between online and desktop platforms. 

• Pricing – Drake Software Online offers multiple plans tailored to your specific needs. Exact pricing is not listed on the website; you can request a quote or contact their sales team from the Drake website. A free trial is also available for new customers. 

• Years Available: Drake Software Online provides access to the current tax year and the previous four tax years (if purchased). For example, in the 2025 filing season, you can select 2025, 2024, 2023, 2022, and 2021 from the drop-down list. If a year is missing, you may need to: 
  • Purchase access for that year, or 
  • Ask your account admin to add you as a preparer for that year. 

Does Drake Tax Online integrate with other Drake software services and preferred solutions? 

Drake Tax Online connects easily with various specialized tools and services designed to simplify tax preparation and boost productivity. 

Built-In Integrations for Tax Preparers 

• Drake Portals – Secure client file exchange for fast, encrypted document sharing. 

• Drake Pay – A flexible, secure payment platform that accepts client payments. 

• Drake E-Sign – Online – Collect legally binding e-signatures on tax documents from anywhere. 

• Protection Plus – IRS audit assistance, identity theft resolution, and letter response help. 

• Bank Products – Options like Pay-by-Refund and Refund Advances for client payment flexibility. 

• The TaxBook WebLibrary Plus – Integrated tax research tool for quick, accurate answers.  

Community Forums & Support 

Tax professionals can access Drake’s active online forums to troubleshoot issues and share knowledge with other peers. Supported return types and forms include: 

• Individual Returns – 1040, 1040-NR, 1040-SS, and 709 

• Business Returns – 1065 and 1120-S 

• Corporate, Fiduciary & Nonprofit Returns – 1120, 1041, 990, and 706 (in desktop mode) 

• Form 114 FinCEN E-file – File the Report of Foreign Bank and Financial Accounts (FBAR) electronically with FinCEN. 

• State Programs-Prepare and e-file returns for every U.S. state, including part-year and non-resident filings. 

• Local Programs – City and municipal returns in KY, MI, MO, NY, OH, OR, and PA 

• Prior-Year Software Access – Easily retrieve and amend older returns 

How do You Set Up Users and Preparers for Drake Tax Online? 

Users 

• You can set up a login in Drake User Manager to configure your account. 

• When you sign into Drake Software Online (DTO) with your Drake User Account: 

• DTO automatically links your account if a matching DTO user exists. 

• If no matching user exists, DTO creates your account the first time you launch the software. 

• You can access a tax year only if you are set up as a preparer for that year. 

Preparers 

• Users can log in to their Drake Software Online dashboard and launch the appropriate tax year. 

• Click Setup, then Preparer Setup from the drop-down list. 

• Click Create to add a new preparer.

• Enter the e-mail address that the preparer uses to log into Drake Software Online while filling in their information. 

• Users click Save at the bottom of the screen. 

Linking Preparers to Dashboard Users 

• Users can log in to their Drake Software Online dashboard and click Manage Accounts. 

• Select the preparer’s email address from the list. 

• Note: If the preparer does not appear in the list, click New User, enter the e-mail the preparer uses to sign in, and then click Next. 

• The Edit User screen opens on your device.  

• Use the search box to link the dashboard user with the preparer for each tax year they need access to. 

• If you have linked the wrong preparer, simply click the trashcan icon to unlink it. 

Drake Tax Online vs. Drake Tax Software: Which One Should You Choose? 

Features	Drake Tax Software (Desktop)	Drake Tax Online
Deployment	Installed locally on Windows PCs (for remote access, you can host Drake on the cloud)	Cloud-based; accessible via browser
Integrations	Full integration library including GruntWorx, MFJ Split Analysis, K-1 Export, Interactive View/Print Mode, Drake Tax Planner, and Organizers	Supports cloud-compatible add-ons like Drake Portals, Drake E-Sign, and Drake Pay
Pricing	One-time license purchase or annual renewal	Pay-as-you-go model; pay for only what you use
Mobility	Limited to installed devices unless paired with remote access tools	Access from any device with internet (PC, Mac, tablet)
Updates & Maintenance	Manual installation of updates	Automatic updates in the cloud
Collaboration	Local network collaboration	Real-time multi-user collaboration from any location
Performance	Runs on local hardware; speed depends on computer performance	Internet-based; optimized for remote use
Best For	Who prefers a traditional, local installation—whether that’s single or multi-prep firms.	Users needing mobility, modern collaboration, and a flexible, browser-based environment

What Are The Alternatives to Drake Tax Online? 

UltraTax 

UltraTax CS is a professional tax preparation software from Thomson Reuters that is designed for accounting firms and tax professionals.

It is part of the CS Professional Suite and integrates smoothly with other Thomson Reuters solutions, such as Accounting CS, Practice CS, and Accounting Payroll CS, enabling end-to-end firm management. 

Features 

• Broad Return Coverage – Supports 1040, 1041, 1120, 1120C, 1120S, 706, 709, 990, 5500, and 200+ state/local returns. 

• Intelligent Calculations – Shows real-time tax impact during data entry. 

• Data Sharing – Automatically updates related returns with shared data. 

• Advanced Diagnostics – Alerts you to missing or inconsistent information. 

• Data Mining – Identifies clients affected by tax law changes. 

• E-Filing Dashboard – Tracks e-file status with built-in error checks. 

Pricing: Custom pricing based on users, returns, and jurisdictions.  

ProSeries Tax Software 

ProSeries, developed by Intuit, is a tax preparation software tailored for accounting firms of all sizes. It offers flexible pricing plans and tools to streamline tax filing, asset management, and client collaboration. 

Features 

• Quick Employer Forms – Generate unlimited W-2s, 1099s, and payroll tax forms. 

• Fixed Asset Manager – Track assets and calculate depreciation with ease. 

• eSignature – Collect secure, paperless client signatures. 

Pricing: Three pricing tiers: Essential, Plus, and Advanced. The Essential pay-per-return plan starts at $499/year. 

Lacerte Tax Software 

Lacerte is professional tax preparation software from Intuit, designed for accounting firms and tax professionals.

It supports a wide range of federal and state tax returns and integrates with QuickBooks Online Accountant to streamline client data transfer and overall workflow. 

Features 

• Real-time Collaboration – Access Lacerte remotely on any device, collaborate in real time, and enjoy enterprise-grade security. 

• QuickBooks Online Accountant Integration – Seamlessly transfer client financial data for faster, more accurate tax preparation. 

• Complex Calculations – Handles 25,000+ automated diagnostics and 7,200+ tax forms easily. 

• Intuit Link (Client Portal) – Collect client tax documents securely, reduce manual data entry, and simplify the filing process for clients. 

• Document Management System (DMS) – Store, organize, and share various document types efficiently. 

• E-Signature – Request and track digital signatures securely from a single dashboard for client convenience. 

• Import and Organize Documents – Automatically map client organizers, K-1s, W-2s, QuickBooks trial balances, and other documents directly to the tax return. 

Pricing – Multiple plans available, including Lacerte Essentials, Plus, and Advanced. Special offers and promotions are available on Intuit’s website. 

Is Drake Software Online Enough for Your Firm? 

Drake Software Online offers tax professionals a flexible, secure, and web-based solution for preparing individual and business returns.

With features like guided workflows, advanced security, and multi-user collaboration, it provides a convenient way to manage tax preparation from anywhere.  

However, Drake Software Online does not support some of the integrations and advanced features available in the Drake Tax desktop version.

You can host Drake Tax Software on the cloud to enjoy the full functionality of the desktop version while gaining the flexibility of remote access, real-time collaboration, and enterprise-level security. 

Frequently Asked Questions (FAQs)

Is Drake Tax Online the same as Drake Hosted? 

No. Drake Tax Online is a web-based version of Drake Software with limited features compared to the desktop version. Drake Hosted refers to hosting the full desktop version of Drake Software in the cloud through a third-party provider. Hosting gives you all desktop features with cloud accessibility. 

Can I use Drake Tax Online on a Mac? 

Yes. You can access Drake Tax Online from a Mac, Windows PC, or any device with a supported browser and internet connection. 

Does Drake Tax Online work offline? 

No. Drake Tax Online requires an internet connection. If you need offline access, you’ll need the desktop version of Drake Tax Software. 

How secure is Drake Tax Online? 

Drake Tax Online uses multi-factor authentication, 128-bit encryption (in transit and at rest), and ongoing security updates to protect client and firm data. 

How much does Drake Tax Online cost? 

Pricing is customized based on your needs. Drake does not publish fixed pricing online. You can request a quote from their sales team or start with a free trial. 

Can I migrate my data from my desktop to online easily? 

Yes. Drake Software offers free data conversion from prior-year returns prepared in other tax software. You can transfer certain data between the desktop and online versions with real-time syncing.