There is no doubt, tax season seems to be a tough time for a lot of people. Fortunately, with technology advancement, doing taxes has become much simpler.

Over the past few years, tax prep platforms like TurboTax have really changed the game. Its easy-to-use approach has lots of beneficial features, ensuring the numbers add up correctly.

Apart from this, making use of such apps can be more cost-effective. It provides an appealing interface and protected climate to keep users’ documents safe. Plus, users will stay up to date with any changes in the tax laws. Apart from providing helpful guides, the app takes security very seriously, imbibing users with confidence. Thus, TurboTax is a trustworthy and useful solution for individuals and businesses alike to take care of their taxes seamlessly.

But, how to build a fintech app like TurboTax? What, why and where are the imperative to understand before delving into the promising untapped market. If you are among the handful of industry disruptors, you are at the right place.

The Market Boom in Fintech App Development Services

The tax filing app market is multi-billion dollar huge, with estimates to reach an awe-inspiring $13.2 billion by 2027. This increase is fueled by the growing adoption of smartphones and the desire for handy and user-centric solutions.

The Demand is Not Any Myth: These days users search for the best mobile tax filing app. Presently, 50% of taxpayers use the best tax filing app to record their returns. This trend indicates a clear demand for progressive and handy tax filing apps, establishing amazing possibilities for new players in the marketplace.

In essence, people want fast and easy-to-use services on their phone. So, there is a growing demand for tax apps. If you are curious to know how to build a fintech app like TurboTax, you are at the right place. Here, we’ll explore its cost and the development process.

What is TurboTax?

TurboTax is a SAAS platform created back in 1984 and acquired by Intuit in 1993 for $225 million that enables people file their taxes online. Users can easily use the basic version of the app without paying anything. Moreover, there are paid options available with added features that cater to evolving user needs.

To your surprise, the company generates revenue by selling these premium versions and by offering extra help from the experts. This software was developed specifically for this purpose.

Apart from this, TurboTax can help users in both Canada and US to file tax returns without any hassle. Most of the features associated with TurboTax apps are free to use and one can easily download the app because of the custom app options available.

TurboTax also provides free resources like guides and tools to help users prepare their taxes. They also offer advice, videos, and calculators to help users understand any tax charges.

14 Essential Features for an App Like TurboTax

Building an app like TurboTax requires integrating crucial features to ensure functionality and user satisfaction. Here are 15 key features to include:

1. Secure Data Import: This feature allows users to securely import tax files (W-2s, 1099s) using manual entry, image capture, or bank connections.
2. Income and Expense Categorization: Automatically categorize income and expenses into appropriate tax brackets to reduce manual effort and chances of errors.
3. Deduction and Credit Suggestions: Provide intelligent suggestions for tax deductions and credits based on user input and current tax policies.
4. Audit Risk Assessment: Analyze user data to assess audit risks and offer guidance on minimizing potential issues.
5. E-Filing Capabilities: Allow users to electronically file their tax returns directly through the app for efficiency and accuracy.
6. Tax Withholding Calculator: Help users estimate their tax withholdings and adjust them throughout the year to avoid underpayment penalties.
7. Tax Payment Options: Integrate third-payment gateways to allow users to securely pay any taxes owed directly through the app.
8. Multi-Language Support: Offer the app interface and tax information in multiple languages to cater to a wider audience.
9. State-Specific Guidance: Provide state-specific tax regulations, filing requirements, and applicable deductions or credits.
10. Self-Employment Tools: Include features for self-employed individuals, such as income tracking, expense management, and home office deduction calculations.
11. Investment Tracking: Allow users to track their investment portfolio and automatically calculate capital gains or losses for tax purposes.
12. Integration with Accounting Software: Streamline data import and export for users who manage their finances comprehensively by integrating with popular accounting software.
13. Educational Resources: Ensure your app offers in-app educational resources, FAQs, and tutorials to help users understand complex tax concepts and make informed decisions.
14. Personalized Support: Provide various support options, consisting of live chat, email, or phone consultations with tax specialists for users needing assistance.
15. Secure Data Storage: Implement robust security measures to ensure the confidentiality and integrity of user data, building trust and confidence.

By integrating these features, you can create a comprehensive and user-friendly tax filing app that caters the needs of modern users and entrepreneurs alike. For detailed guidance and customized solutions, talk to a professional app development company like Apptunix to bring your vision to life.

How To Develop A TurboTax-Like App?

The process of developing an advanced tax preparation software requires going through different stages. Here is a step-by-step guide to assist you how to develop an app like this:

• Do The Market Research

When creating a new tax app, it is really important to start with thorough research. You need to understand the users who will use the app and what they want from it.

It is also important to look at other tax apps out there, like TurboTax, to see what they do well and where there might be room for something new. This will help the development team make an app that really meets users needs.

• Identify Core Features and Functionalities

When developing an app like TurboTax, you must focus on adding features that meet users needs and industry standards. Keep in mind that your developer ensures the app is error-free, keeps your important documents safe, allows you to file your taxes online, and uses accurate math to perform calculations.

Moreover, to make your app unique in this competitive market, you can take Fintech app development services. They will help you to come up with new ideas. When you add new and advanced features to your app, it becomes unique and meets the changing needs of its users. By using advanced technologies like chatbots powered by AI, the app can offer personalized tax help, individualized financial information and easy-to-use interfaces.

• Technology Stack Selection

Choosing the right technology stack is super important when developing an app like TurboTax. Developers need to choose the best programming languages, frameworks, and databases to meet the app’s needs and make sure it can handle a lot of users and data. You must also make sure that the technology you choose should include strong security mechanisms to protect confidential financial data of users.

Moreover, platform compatibility is important because the app must run on different devices like computers, iPhones and Android phones. Thus, to make sure the app runs well on all these platforms, you must create a strong tax preparation app that is fast and compatible with different devices.

• Create a User-Friendly Interface

The performance of a tax preparation app relies on how easy and enjoyable it is to use. This is why it is crucial for the app to have a simple and good-looking design to make it easy for people to use.

With many people using apps on different devices, it is really important for the app to work well on phones and tablets. People will like the app more if it’s designed with them in mind, easy to move around in, and looks good on different screens.

• Start The Development Process

As the TurboTax app is being developed, the coding work is getting more intense in two main areas. In the backend systems, complex coding is being done to make sure that the calculations, error checking, and entering data all happen smoothly. This involves creating step-by-step processes for accurate calculations and setting up reliable systems to handle errors.

Thus, frontend coding must focus on making websites and apps work well on different devices, like phones and computers. It also involves creating features that update automatically when tax rules change, so everything stays up to date in real time.

• Compliant with Tax Regulations and Guidelines

Tax apps like TurboTax have to follow tax rules to be created. The developers who develop the app must keep a close eye on the tax rules that keep changing to make sure the app always gets the numbers right. When the rules change, the app changes too, so it is always following the latest guidelines.

The development team must also take care of the legal matters that are related to the app, like terms of service and privacy policies. This means the app is secure and trustworthy, as it follows strict industry standards and data protection laws.

• Ensure a Rigorous Testing Process

When testing the tax preparation software, a careful approach is taken to ensure the smooth operation of the tax preparation software. The QA experts carefully identify and resolve the bugs and other flaws through a thorough testing process. This ensures an error-free and seamless experience for the user. Apart from this, usability testing is important to make sure that the app’s design is functional and intuitive.

You must also test the security of the app to keep the user’s data safe and make sure that the app is strong against the potential weaknesses. With this comprehensive approach, the app is tested for the security and user-centric design apart from its functional elements. This makes it a more reliable and robust tax preparation tool.

• App Launch

The App Store and Google Play Store will let you start using your tax preparation app after it has been tested and approved. Thus, it is important to have a good plan for launching the app to make sure people know about it and want to use it. Both app stores have specific rules and standards that the app needs to meet in order to be successful.

To make an app popular, your app must have a great description, attractive images, and positive user reviews. Thus, using the right strategies can help your app get noticed in the App Store or Play Store. Also, during the initial release, user reviews and ratings play a big role in how popular your app becomes.

• Continuous Maintenance and Updates

It is important to keep the tax preparation app up to date so that it can adapt to the changing needs of users and keep up with new technology. This means the app will constantly be improved to make it better and more user-friendly, with new features regularly added to make it even more helpful.

A proactive approach is further taken to strengthen the security protocols and protect user data against new threats. This is where your Fintech mobile app development company keeps a close eye on tax laws to make sure the app is accurate and follows all the rules. This ongoing effort helps people to make sure the app stays useful and reliable.

Cost Estimation for Tax Filing Apps

Tax preparation software like TurboTax generally costs between $30,000 to $50,000 or above to develop. Often the cost depends on its complexity-level, features and partner app development company. The development price varies based on different features which can be categorized as basic, intermediate or advanced.

• Basic App

The Basic App has everything you need for taxes. It helps with entering your income and deductions, calculates your taxes, and lets you file electronically. It is really easy to use and you can do interviews or fill out simple forms. Just so you know, it does not have many fancy features like AI stuff or complicated math. It costs anywhere from $10,000 to $25,000. It is a great option if you want a simple and not too expensive way to do your taxes.

• Intermediate App

The Medium App is designed to make doing your taxes easier and more effective with extra features. It costs between $30,000 to $55,000 and provides help with different tax forms, state tax filing, and connects with standard tax data sources. Users can choose between a simple interview style or a more detailed form-based approach.

It’s ideal for people with more complicated tax situations.

• Advanced App

An advanced tax filing app is designed to make doing your taxes easier and more effective with extra features. Leveraging technologies like AI, Blockchain, etc costs between <$60,000 and above, providing help with different tax forms, state tax filing, and connecting with standard tax data sources. Users can choose between a simple interview style or a more detailed form-based approach.

This advanced option is ideal for people who are ready to invest for more advanced solutions cementing their footsteps in the tax filing landscape.

Final Thoughts!

Now that you know all the steps involved in developing a TurboTax app, you must employ the services of a professional Fintech mobile app development company like Apptunix. By taking fintech app development services, you will work with professionals who understand tax apps rather than just a development team.

So, interested in developing a Fintech app that inspires the next? Contact us today!