TaxAct Review – Doing Your Own Taxes, Made Easier
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Tax filing doesn’t have to be complicated, and there are ways to ensure this tax season isn’t dreaded. Moving your taxes to TaxAct is one way to do this.
9/10
Cost
9/10
Services
8/10
Features
9/10
Ease of use
9/10
Every new tax season, I find myself talking about the income tax deadline like it’s a final exam—with dread. And for a good reason. Sometimes, it takes weeks—maybe months—to get everything together.
Online software has made tax filing easier, but it still seems like something always needs to be fixed every tax year. Enter TaxAct. This software improves the tax filing experience.
In this article
What is TaxAct?
TaxAct has been around since 1998 and offers tax preparation software to individuals, businesses, and tax filers. Starting in Cedar Rapids, Iowa, TaxAct grew from a small software business to one of the leading affordable cloud-based tax preparation solutions providers. The company’s mission is to empower people to navigate the complexities of tax and finance with ease and accuracy at a fair price.
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How does TaxAct work?
TaxAct has several versions of their tax software, depending on your tax filing needs. Your first step will be to choose which version is best for you. One note: if you don’t know which version you need, you can begin with the free version, and it will let you know if you need to upgrade.
Once you have chosen the version, you must create an account. Enter your name and phone number, and create a username. A code will then be sent to your email and phone number to verify the account.
At this point, you’re in! First, you’ll see an offer for one-on-one phone support from TaxAct’s tax experts. This invaluable add-on can be used throughout your tax filing process.
How much does TaxAct cost?
TaxAct pricing is cheaper than that of most of its competitors. The basic version, designed for people filing W-2 income, retirement income, or unemployment income, is free. There are also three other versions with additional features.
Version | Price | Best for |
Free | $0 | W-2, self-employment, retirement income, students/dependents |
Deluxe | $24.99 | For filers with loans and children
|
Premier | $34.99 | Stocks, home sales, rental properties, foreign bank accounts, royalties, and Schedule K-1 |
Self-Employed | $64.99 | Self-employed, small business owners, farm income, personalized business deductions, Schedule C |
These plans include free Xpert help over the phone, account and technical support and prior-year import.
TaxAct features
TaxAct is filled with unique and exciting features at affordable costs. Some of these include its customer support (even included in the free version), easy-to-use mobile app, intuitive user interface, Donation Assistant (which helps determine the value of donated items), and more.
Intuitive user interface
The IRS tax forms need to be written more user-friendly, which is why programs such as TaxAct are so helpful. TaxAct takes detailed information and breaks it down into a simple approach by asking questions and guiding you step-by-step.
TaxAct organizes these questions so you won’t accidentally miss essential details by moving in and out of categories. But if you need to go back and change information, that is also simple. A cleanly designed sidebar shows you each category, its breakdown, and where you are now.
Xpert Assist
TaxAct offers complimentary Xpert Assist over the phone to all TaxAct filers at no additional charge. If you encounter a complication or find yourself confused, a CPA awaits your call. They will help you find a solution and make sure you’re prepared to continue your tax filing.
Mobile app
A mobile app is included with TaxAct that makes your life easier. This is one of the features I like the most, mainly because of its W-2 capture feature.
Receiving physical W-2s, 1099s, and other tax documents annoys someone like me, who stores nearly everything in the cloud. But with W-2 capture technology in the mobile app, I can quickly turn these paper documents into files and never have to worry about misplacing them. And I won’t have to wait for a physical check because I can set up direct deposit for my returns.
Here are a few more features you get with the mobile app (available for Android and iPhone):
- Touch ID or Face ID sign-in
- Personalized product recommendations
- Support for all online TaxAct products: Free, Deluxe, Premier, Self Employed
- Seamless transfer between app and desktop
- Notifications when the IRS has processed returns
- Secure access anywhere, anytime
- All returns are backed by TaxAct’s $100K Accuracy Guarantee
- Status updates for IRS tax refund
- Free federal extension filing
- Support with live chat
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- Transparent information on each offer for earnings and tasks.
- Money is deposited quickly and securely
- Featured offers maximize earnings
- First-class referral program
Who is TaxAct best for?
TaxAct is an excellent choice for simplifying their tax filing experience. As a bonus, depending on your chosen plan, you will likely pay less using TaxAct. But there are some people for whom it is especially good.
Those needing more one-on-one support
If your tax filing has been confusing in the past, TaxAct is for you. Maybe you’ve had to do a lot of research or paid extra for one-on-one support. If this is the case, TaxAct’s CPAs on standby can guide you through your taxes at no additional cost. This is of considerable value and should be a reason to consider TaxAct.
Freelancers and small business owners
Filing taxes as a small business owner or freelancer is complicated. That’s why TaxAct is a solid choice. TaxAct’s highest-tier plan is designed for small business owners and freelancers, and it’s cheaper than competitors. Neither H&R Block nor TurboTax includes tax pro assistance—just online support. TaxAct’s plan does include professional tax assistance.
Related: Key Personal Finance Dates
Who shouldn’t use TaxAct?
Despite its great features, some groups won’t benefit from using TaxAct.
Tax filers paying state tax in multiple states
If you receive W-2s from multiple states and have simple returns, TaxAct could be more expensive because the state return prices are higher than those of some competitors. The free plan costs $39.99 per state tax return, and the other plans cost $44.99 per state. This is compared to H&R Block’s $0 per state on the free plan and $37 on other plans. TurboTax costs $0 per state on the free plan and $54 per state on their other plans.
Intuit power users
If you already use Intuit’s Quickbooks, you might prefer TurboTax over TaxAct. That’s because TurboTax has a more familiar user interface and seamless integrations with your other accounting or budgeting tools.
Related: Money Moves to Make Before April 15
Pros and cons
Pros
- Low cost for complicated taxes. TaxAct offers a lot in its high-end packages—much more for the price than its competitors.
- Easy-to-use tax filing process. TaxAct’s process is uncomplicated, simple, and painless.
- Excellent support. This support includes both the ProTips and the phone support, ensuring a maximum refund guarantee.
Cons
- Higher prices for basic taxes. Because the state filing costs $34.99 on the free plan, those doing straightforward tax filing will end up paying more than they would on other software.
- Basic software doesn’t offer as much as its competitors. The basic plan won’t let you account for things like a Health Savings Account, student loan interest, mortgage interest, itemized deductions, and more. If you want to include these at no additional cost, another software (or a different TaxAct plan) may be better.
- Mostly DIY. If you get overwhelmed halfway through, you can’t pay one of their tax professionals to take over as you can with TurboTax.
TaxAct vs. competitors
TaxAct is a solid player in the tax filing field but has strengths and weaknesses. Here is a breakdown of how it looks next to its biggest rivals.
Service | Price |
TaxAct | $0 to $64.99 for federal, $39.99 to $44.99 for state |
TurboTax | $0 to $119 for federal, $0 to $49 for state |
H&R Block | $0 to $85 for federal, $0 to $39.95 for state |
FreeTaxUSA | $0 for federal, $39 for state |
TurboTax
TurboTax is the most popular tax filing software, and it has a lot to offer. It has an easy-to-use interface, many additional features, and a cheap entry point. Its most robust feature is how cheap its basic software is—it’s free. But as your tax situation becomes more complicated, its prices quickly become too expensive to justify.
H&R Block
Like TurboTax in its lower-tier options, H&R Block’s basic plans start at $0. But just like TurboTax, its plan prices become expensive as your taxes become more complicated. Its interface is also not as simple as TurboTax or TaxAct.
FreeTaxUSA
FreeTaxUSA stands up to its name, offering free tax filing. This is a wonderful aspiration, and they do accomplish it. But like most free things, it lacks the ease of use and strong support that TaxAct and others have.
Make $500+ Your First Month With KashKick!
- Transparent information on each offer for earnings and tasks.
- Money is deposited quickly and securely
- Featured offers maximize earnings
- First-class referral program
FAQs
Is there an extra charge for e-filing?
There is no extra charge to e-file a return with TaxAct. The price you pay allows you to print or e-file.
Is there a desktop/download version?
Yes. The desktop/download version allows you to file multiple returns under one account, and up to five federal filings can be done electronically.
Am I able to import my information from another tax software?
Yes. TaxAct will allow you to import last year’s return from TurboTax or H&R Block as a PDF.
The bottom line
Tax filing doesn’t have to be complicated, and there are ways to ensure this tax season isn’t dreaded. Moving your taxes to TaxAct is one way to do this.
This is especially true for small business owners, freelancers, or those making money from a side gig. Working harder shouldn’t make your taxes more expensive and more complicated. TaxAct can walk you through the process for a fair price.
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Writer
A veteran wordsmith and research nerd, Brittany Wren spent a decade working in higher education where she helped people overcome challenges to chart a path forward. These days, she writes about personal finance, careers, parenting and education. Her content has been published by a wide variety of brands including T-Mobile, Intuit, LifeLock, Reliant Fund Administration and CURO Financial Technologies Corp.
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