TaxAct has offered online tax filing services for more than 25 years. This season, it has four online filling plans and desktop software catering to nearly all types of individual filers. Pricing is clear and the platform does a good job guiding users through the tax preparation process. Expert assistance is available, albeit pricey, for those who need it.
Business Insider's personal finance team compared TaxAct to the best tax software and found it to be a standard offering.
TaxAct Pros and Cons
Pros
- Compare pricing and packages right from the homepage
- Federal plan covers more than some leading competitors
- Tax document upload and tax return import for easy data entry
- Accuracy and satisfaction guarantees
Cons
- Expert help is available for a steep fee
- State returns have additional costs, even when you qualify for $0 federal filing
- Document upload is not yet available for 1099-NEC
File with TaxAct
$0.00 - $99.99 (+$39.99 or $59.99 for state return, depending on package)
Pros
Cons
TaxAct gets the job done with fewer bells and whistles than H&R Block or TurboTax, though costs can still add up. It's best for someone who appreciates a simple, streamlined interface.
TaxAct- 4 plans, including a free federal option
- Simple, intuitive interface
- Free, instant access to a tax expert at all plan levels
- Good middle-of-the road option on price and efficiency
- Option to have a professional file your taxes at an additional cost
Compare Tax Companies
Who Is TaxAct Best For?
TaxAct is best for filers who want to save a bit of money by avoiding the big-name tax providers, but don't want to compromise on quality. Access to tax experts is no longer free, but TaxAct's platform includes a lot of resources for tax newbies. Its tax document upload and tax return import features can save filers a lot of time.
Overview
- $0 to $69.99 (+$39.99 for state return)
- Optional tax assistance upgrade
- Industry-standard accuracy and maximum refund guarantees
Key Tools and Resources Offered
TaxAct meets the filing needs of most taxpayers, with separate online plans for simple situations and more complex situations, such as self-employment.
If you'd rather use a TaxAct desktop product to prepare your return without an internet connection, you'll pay nearly twice the cost. For instance, the Deluxe online filing plan is $29.99, plus $39.99 per state return. The downloadable software, which covers the same situations, is $139.99 and includes a state return. But it comes with additional features, such as tax form import capabilities to speed up data entry, prior year tax return import to fill in "key data" quickly, and amended returns.
As you're guided through the tax-prep process, TaxAct pays particular attention to areas where "double answering" is common. For example, self-employed individuals with marketplace healthcare plans can potentially qualify for multiple credits, so you have to be sure you don't double-dip with the same qualified healthcare premiums. TaxAct catches these common errors, notifying you about what it's doing behind the scenes to ensure all your calculations are accurate.
Cost
Basic Filing Options
TaxAct's $0 plan is available to filers paid through W-2s or who collected unemployment or retirement income. It allows you to claim the Child Tax Credit and the Earned Income Tax Credit, as well as the student loan interest deduction and education credits.
Deluxe
- $29.99
If you have deductions to itemize, such as mortgage interest or real estate taxes, you'll need to upgrade to Deluxe. It also includes childcare expense credits, along with the adoption credit, and the deduction for Health Savings Account contributions.
Premier
- $49.99
This package is built for those with investment income, rental property income, foreign bank accounts, and partnership income. If you sold a home this year, this is also the package for you.
Self-Employed
- $69.99
Self-employed people will need to spring for the highest-tier package to file with TaxAct. It covers 1099 income, other business income, and farm income, and enables business deductions, including depreciation.
While TaxAct has expanded its document upload capabilities to include more types of 1099 income forms, it does not yet support uploads of 1099-NEC, Nonemployee Compensation, which reports earnings for freelancers, contractors, and gig workers.
State Filing Costs
You'll have to pay an additional $39.99 to self-prepare and file a state return with TaxAct, even if you qualify for the $0 federal plan. At TurboTax and H&R Block, those who qualify for $0 federal filing get state filing included too.
How Does TaxAct Work?
Navigating TaxAct's Platform
When you first initiate the tax filing process with TaxAct, you will be guided through a series of questions. You'll be asked if you have children, run a business, own a home, have student loans, and more.
All these questions allow TaxAct to recommend the best package for your tax situation. Each package's interface is slightly different, providing those with simple tax returns and those with self-employment income with appropriately different experiences. All plans allow you to upload or import select W-2s and 1099s for easy data entry.
Compatibility Across Devices
TaxAct discontinued its mobile app in 2023, so the only way to prepare your federal and state taxes is by logging into your account on a desktop computer.
Customer Support Options
Help Center Resources and Guides
The "support" tab on TaxAct's top navigation bar brings you to the Help Center. There you'll find dozens of Q&A-style articles offering guidance on technical issues, printing your return, avoiding common mistakes, and entering certain types of income. You'll also find a library of articles that explain every federal tax form and schedule and select state forms.
Contact Options and Response Times
TaxAct customer support is available via chat, email, and phone to answer technical and account questions. Phone lines are open on weekdays from 6 a.m. to 3 p.m.
TaxAct Xpert Assist Overview
At any time during your tax-prep process you can add on a feature for $60 that gives you unlimited, live access to tax experts. You'll be able to submit questions within your account and an expert will reach out by phone and initiate a screen-share if needed.
Xpert Assist also includes a final expert review of your return, though they aren't able to review any of the documents you used to prepare the return.
Security and Data Protection
TaxAct uses industry-standard security and encryption practices to keep user's sensitive information safe. It requires strong passwords, multi-factor authentication, and trusted device verification for all accounts.
Your returns are accessible for one year online and six years as a downloadable PDF.
TaxAct Alternatives
TurboTax
$0 for Free Edition (~37% of filers qualify. Form 1040 and no schedules except for Earned Income Tax Credit, Child Tax Credit and Student Loan Interest), $39 to $69 for Deluxe, $89 to $129 for Premium
Pros
Cons
TurboTax is among the most expensive options for filing taxes online, but offers a high-quality user interface and access to experts. It's especially valuable for self-employed filers who use QuickBooks integration.
TurboTax Tax Software- Tell TurboTax about your life and it will guide you step by step. Jumpstart your taxes with last year’s info.
- Snap a photo of your W-2 or 1099-NEC and TurboTax will put your info in the right places.
- CompleteCheck™ scans your return so you can be confident it’s 100% accurate.
- You won’t pay for TurboTax until it’s time to file and you’re fully satisfied.
- TurboTax is committed to getting you your maximum refund, guaranteed.
TaxAct and TurboTax both require similar-priced upgrades to get help from a tax expert when using a self-preparation plan. If you have a particularly complicated tax situation, business expenses, or significant investments to report, you might have a smoother tax-prep experience with TurboTax, which includes features like document upload/import from financial companies as well as QuickBooks integration.
H&R Block
Pros
Cons
H&R Block has something for everyone, whether you're filing online yourself, looking for expert advice, or want to hand it off to a professional. While it doesn't offer the lowest prices you'll find for tax software, the quality of the overall user experience can justify the higher cost.
H&R Block- File your own taxes
- Step-by-step guidance
- Add expert tax help any time
- Real time results
TaxAct's self-preparation plans appear cheaper than H&R Block's, but they lack access to live tax experts, a feature included in every paid plan from H&R Block. As an example, a self-employed filer would pay $85 to do their own taxes at H&R Block and chat with a pro when needed vs. $130 at TaxAct.
FreeTaxUSA
Pros
Cons
Able to prep and file your federal return for free, and add on a state return for a low price.
FreeTax USA- Clean and modern interface
- Upgrade to priority customer support for $6.99
- Easy prior-year return import, but no document upload
TaxFreeUSA is hard to beat when cost is a main concern. While TaxAct has a good federal filing plan that covers more than big-name providers do, it costs $60 extra to consult a tax specialist. At TaxFreeUSA, it's $39.99 at most.
TaxAct Customer Experience
Compilation of User Feedback
TaxAct is not widely reviewed on customer review platforms. There are more than 29,000 customer testimonials published on TaxAct's website, 85% of which include 4-star or 5-star ratings. It's worth noting, however, that the testimonials are incentivized.
Is TaxAct Trustworthy?
As an IRS-certified e-filer provider, TaxAct is a trusted platform for filing your federal and state taxes. Its accuracy and satisfaction guarantees help ensure your taxes will be calculated correctly based on the information you provide, or you will be compensated.
In January 2023, a class action lawsuit was filed against TaxAct alleging that the company shared users' personal and financial information with Meta, Google, and Google Double Click without the users' consent. TaxAct will pay a settlement of nearly $15 million to settle the suit.
Why You Should Trust Us: How We Rated TaxAct
The best tax software is cost-effective, simple to use, and accurate. To determine whether TaxAct met that standard, we rated its tax-prep product on cost, value, and user experience. Together, these categories accounted for 75% of our overall rating, while the remaining 25% came from our evaluation of its trustworthiness as a company and whether (and how) it provided users with access to tax experts.
For more information, see our tax software methodology.
FAQs
Is TaxAct good for self-employed individuals?
TaxAct is a good option for self-employed individuals who are looking for a service that's cheaper but as effective as TurboTax or H&R Block. However, TaxAct requires an upgrade to get help from a tax pro, which puts the all-in cost on par with H&R Block and TurboTax.
How much does TaxAct cost?
TaxAct costs vary depending on the level of expert help you need and your tax situation. Prices generally range from $0 to $69.99 for self-preparation, plus an additional $60 to add on live, expert assistance.
Does TaxAct offer a free version?
TaxAct offers a $0 version for those who qualify, which generally includes W-2 earners, and those with retirement or unemployment income. It covers the Earned Income Tax Credit and the Child Tax Credit, as well as education credits and deductions, which is more than TurboTax. But state filing at TaxAct is an additional $39.99.
What support options are available with TaxAct?
TaxAct support options include Xpert Assist, a $60 upgrade available with any self-preparation package. It gives you unlimited access to a tax expert over the phone and an optional final review of your return.
How secure is TaxAct for online filing?
TaxAct uses industry-standard encryption and security practices to safeguard your information.
Can TaxAct handle multi-state filings?
Yes, TaxAct can handle multi-state filings, but charges $39.99 per state return.
