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TaxAct is one of the most popular tax filing programs on the market. Competitive pricing and a range of features allow us to provide the help and support you need — without having to pay the full cost of an accountant.
But before you start using TaxAct, let’s take a look at what TaxAct has to offer and what you should know.
cost – 9
Customer Service – 8.5
Ease of use – 8
Tools and Resources – 7
Imports of the previous year – 10
Mobile App Usability – 9
9
TaxAct doesn’t offer all the features that other tax reporting services have, but it’s also one of the lowest priced options for filing federal returns. State returns can be expensive. However, I do like the small business features that TaxAct offers.
What is Tax Act?
Since 1998, TaxAct has established itself as an affordable alternative to other tax preparation software. resulting in, tax law The software interface is clean and uncluttered, making it easy to use and visually appealing.
TaxAct is often seen as a “discount” option when compared to other tax preparation software, but it actually offers more than you’d expect. It’s worth comparing TaxAct to other tax preparation options before making a decision.
Who is TaxAct for?
For the most part, TaxAct is for people looking for great value in tax preparation software. It’s designed to require a little more effort than other products, so it’s perfect for those who have some confidence in their tax preparation but need a little guidance.
Tax law function
Free version
Simplified tax return only |
|
Import function | |
Small business features | |
Investor characteristics | |
Includes audit assistance | |
refund tracking | |
Accuracy guarantee | Up to $100,000 |
filing support | Live Chat and Phone: 8am to 5pm Central Time. Extended hours including weekends from January to April. email. |
TaxAct plans and pricing
TaxAct offers a way to create the file yourself and a way to create the file using the Xpert Assist option. The latter comes with unlimited one-on-one advice from tax experts, certified public accountants, and registered agents with years of tax preparation experience. For all products, TaxAct offers account and technical support via chat or phone, and an answer center for all FAQs.
online service
TaxAct has four different online plans, all of which include free Xpert Assist. These plans are Free, Deluxe, Premier, and Self Employed. Let’s break down the cost and features of each plan.
free
- Federal Return: $0
- Status return: $39.95
If your tax situation is very simple, this free TaxAct service is for you.
The Free plan can handle simple returns for people with W-2, unemployed, or retirement income, and those eligible for the child tax credit, earned income credit, or stimulus deduction. Quickly and easily import your stimulus income and get started. This product does not allow itemization of deductions and limits the forms and schedules available.
deluxe
- Federal Return: $24.95
- Status return: $44.95
Now we’re starting to get into a bit more complicated territory. The deluxe version of TaxAct tax preparation software gives you access to everything in the free version plus the ability to submit Schedule A and Schedules 1-6. With this plan, you can itemize your deductions and receive credits and deductions for things like adoption, childcare, student loans, and mortgage interest.
premier
- Federal Return: $34.95
- Status return: $44.95
This plan is for investors. This allows you to report income from rental properties, home sales, royalties, and 1099-K income and money in foreign accounts. You can submit Schedules D and E, which you won’t get with your next plan.
For many people who are not self-employed, the Premier Online plan is a good choice. Access many of the most popular forms and schedules not included in Deluxe.
self employed
- Federal Return: $64.95
- Status return: $44.95
This plan for self-employed filers is the only online plan with TaxAct that allows separate business deductions and income for freelancers, businesses, and non-employees (1099-NEC). It also supports calculation of depreciation.
This tax package will get you most of what you need as long as you are a sole proprietorship, S-Corp, or LLC. Use Deduction Maximizer to ensure you’re invoicing all business expenses and get Schedule C and F support. Plus, get help with financial assessments and annual tax planning. .
software download
If you prefer to download tax software and file your own tax returns rather than pay for online services, TaxAct options include Basic, Deluxe, Premier, and Self-Employed.
Basic
- Federal Return: $44.95
- Status return: $60
The Basic software download is for simple filers. This includes up to 5 federal electronic files for free, plus an additional $60 fee for each state return you need to file.
deluxe
- Federal Return: $139.95
- Status return: $60
The Deluxe software download includes 5 federal electronic files and 1 state return. After that, it costs $60 for each state return. This software is intended for applicants who wish to claim unemployment income and/or child and homeowner deductions.
premier
- Federal Return: $149.95
- Status return: $60
Premier download from TaxAct is for complex returns. You can report investment income and global income, including income from rental properties. This download contains up to 5 federal electronic files and 1 state form. If you need to file more state returns, you will have to pay $60 each.
self employed
- Federal Return: $159.95
- Status return: $60
For complex returns by self-employed filers, self-employed software downloads are the right choice. This option allows you to submit the 1099-NEC Form, 1099-MISC Form, Schedule C and F Forms (for business and agricultural profit/loss respectively). The self-employed download includes 5 federal electronic files and 1 state return, with additional state returns costing $60.
Other TaxAct products
TaxAct also offers other products for people who don’t fit into any of the categories we’ve discussed so far.
There are business tax application forms, including a C-Corp help application and a non-profit application. We also have enterprise software (called TaxAct Professional) that tax professionals use to prepare tax returns for their clients, as well as online plans and downloadable software for preparing real estate and trust returns.
How to choose products
There are several different features and products that TaxAct offers. As with many other tax preparation software programs, you should purchase product tiers based on your needs and the complexity of your tax situation.
However, all products come with the following features:
- Free tech support to troubleshoot issues
- Access to tax returns for 7 years
- Maximum money-back guarantee
- Accuracy guarantee
- Importing tax documents
- Tax preparation tips and tools
- Return status
When deciding how to file with TaxAct, consider your income reporting needs and the amount of deductions and deductions you plan to make. This will point you in the right direction for the desired product tier.If you’re not sure which deductions and credits you’re eligible for, check here A guide to offsetting taxes.
Next, decide whether to submit directly through an online platform (online service) or install the software required to complete the return (download). This is a matter of taste. While some find it more efficient and convenient to file online, they may prefer the security of installing software to update their tax return locally.
TaxAct also has a $100,000 accuracy guarantee and deduction tools to maximize your tax deductions.
Refund option
Like other tax preparation software, TaxAct allows you to claim your refund in a variety of ways. Options include:
- direct deposit
- paper check
- It will apply to next year’s tax.
- Buying US Savings Bonds
- American Express prepaid debit card
Registration method
To start using TaxAct, you need to select a product. Next, you will be asked to create an account. Enter your email address and TaxAct will send you a code that you can use to create your account. Create a password, enter your phone number, and set a secret question. This, like many other tax products, is a slightly more complicated process than getting started.
However, you can initiate a return without entering payment information. It’s easy to import the previous year’s 1040 and check the information. Once you’ve done that, you can dig into what’s going on this year.
Synchronization
TaxAct makes it easy to import tax information from previous years. If you want your tax refund to be credited directly to your account, you will need to provide your bank information. This is the fastest way to receive your money. You can also sign in to your account from your mobile device and continue working on your tax returns from another location.
mobile accessibility
TaxAct’s mobile app, TaxAct Express, is a sleek and easy-to-use app. Capture important documents using your mobile phone and switch between mobile and desktop versions. It also supports Touch ID and Face ID.
However, there are some features that TaxAct Express does not. For example, you might start on the mobile app but need to switch to the desktop to complete your taxes because you can’t manage some of the forms and schedules that come with more advanced situations.
customer service
TaxAct has a searchable knowledge base and all filers can get support via email, chat or phone. Customers who choose products with Xpert help have the option to share their computer screen.
Please understand that representatives cannot give tax advice over the phone. They’ve done tax prep before and it’s a plus that they’re all dedicated to tax prep, but most of the time they just help you navigate the app.
Pros and Cons of TaxAct
Strong Points
- Free online plan. TaxAct free is free to use on federal returns and works in most simple situations.
- user friendly. A simple online platform that guides you in finding eligible tax incentives.
- Low price. Compared to other platforms, TaxAct’s pricing for filing federal returns is competitive for both online plans and software downloads.
- Expert Assist. Xpert Assist, now free on all online plans, includes unlimited guidance and support from tax experts.
Cons
- No audit protection. TaxAct provides only basic audit assistance, including clarification of IRS forms, and does not provide defense or advice.
- No email support. You cannot contact TaxAct technical or tax support by email. Phone or chat only.
- An expensive state is returned. State returns cost extra on all plans and aren’t cheap.