2020 Review of Magtax

From the 2020 reviews of W-2 and 1099 compliance systems.

Magtax from American Riviera Software is a good fit for businesses and accounting firms that wish to e-file both W-2s and 1099 forms. Available in two versions, Standard and Professional, Magtax can be downloaded from the Magtax website and installed on desktop or workstation computers. Magtax supports both unlimited payers and unlimited recipients, and includes the new 1099-NEC form which is now being used to report non-employee compensation. 

Magtax does not offer remote access or a mobile app, but users can have the application hosted if remote access is a necessity.

Magtax supports the most common year end compliance forms including W-2, 1099-MISC, 1099-INT, 1099-DIV, 1099-C, 1098, and 1098-C, with additional 1099 forms and 1042-S forms supported in the Professional version of the application. Mentioned earlier, Magtax also supports the new form 1099-NEC, which will be necessary for anyone tracking non-employee compensation, with the form included in both the Standard and Professional plans.

Magtax includes a slightly dated interface that offers easy access to both IRS and SSA information. The getting started screen provides users with a list of all new features that have been added, and the New Filing Wizard helps to simplify the entire process from entering the initial data needed to generating and filing a return. Users can easily review and edit any completed W2s or 1099s, with both versions of the application offering unlimited e-filing capability, with the Professional version also offering e-verification as well, with all e-filing done by the user.

Magtax users can choose to enter data manually, or import information from QuickBooks files. With non-QuickBooks users able to use Microsoft Excel. All prior year data is stored in Magtax for easy access the following year, eliminating the need to reenter recipient and payer information. Magtax is designed to print on blank paper, but will also print on pre-printed forms, with users able to save all completed forms in a variety of formats including JPG, TIF, EMF, or as a PDF file.

Magtax offers a variety of resources designed to help new users including a Getting Started page that provides new users with step-by-step instructions on preparing forms and e-filing. A FAQ page addresses common issues, with a variety of short videos available as well. There is also an online version of the help application available from the support page. Users can request support directly from the support page, with support handled primarily via email, though users can make an appointment if a phone conversation with support personnel is desired.

Mentioned earlier, both the Standard and the Professional versions of Magtax can import data from QuickBooks as well as Microsoft Excel, TXT, and CSV files, and both plans support multiple clients, but e-verification and filing extensions are only offered in the Professional plan. In addition, common 1099 forms including 1099-NEC are supported in both the Standard and Professional plans, but other less utilized 1099-forms such as 1099-G, 1099-S, 1099-R, and 1099-B are only supported in the Professional plan.

Magtax offers excellent e-filing capability for W-2s and 1099s, making it a good fit for small to mid-sized businesses as well as accounting professionals. Magtax offers two plans; the Standard plan, which is currently priced as $199.00 and the Professional plan, which currently runs $299.00. The Standard version offers a single-user license, with the Professional version offering a 5-user license, with more licenses available to purchase if needed. A demo is available for those that wish to try out the application prior to purchasing. 

Strengths:

• Imports data from QuickBooks
• Supports unlimited payers and unlimited recipients
• Unlimited e-filing included in both plans

Potential Limitations:

• No online or mobile access
• Some features only found in more expensive plan

2020 Rating: 4.75 Stars