Start at $0
Start at $4.95
Live chat, phone, email
Last Updated: June 7, 2021
Start at $0
Start at $4.95
Live chat, phone, email
Xpert Help Service Cost:
$100,000 accuracy guarantee
Free, Deluxe, Premier, and Self Employed
Browser-based, iOS, Android
In most TaxAct reviews, the company is praised for its wide range of services offered to individuals and small businesses alike.
It’s a reliable and cheap place to do taxes but it also provides premium service. Let’s see how it fares against the rest of the industry.
What Is TaxAct?
Numerous TaxAct reviews confirm our findings that this is one of the best online tax filing options available.
What’s more, recent income tax statistics show that 90% of Americans struggle with the new tax bracket reform. Why not let the software take care of that for you?
The company launched in 1998. If you’re wondering who owns TaxAct, it’s an asset of TaxAct Holdings, Inc., a subsidiary of Blucora.
During our research for this TaxAct review, we have found out that you can find most of the vendor’s products online and for downloading. Here are some of the forms it covers:
- W-2 employee forms
- Student loans
- Homeowner forms
- Investment filings
- Maximized deductions
- Donations to charity
- Having dependents
Files for business owners, contractors, freelancers, and those with retirement income are also available.
When it comes to TaxAct Basic vs Plus, the difference isn’t just the price. For instance, self-employment requires a list of features, fees, income formats, and file types you won’t find with the free version. It also needs year-round tax support, planning, as well as guidance for maximum refund. If you’re self-employed, you better get the essential toolkit for tax preparation and tax returns.
The Business package has four products for enterprises of different sizes and structures. The cheapest version is the Sole Proprietor, which costs $64.95 and covers Form 1040, Schedule C. Partnership, as well as C, S corporations all cost $109.95 with Forms 1065, 1120, and 1120-S, respectively.
The platform allows you to save money with the home and business tax software bundles. Not many TaxAct online reviews cover this, but this means that TaxAct pricing is quite affordable. For instance, 1065, 1120-S, and 1120 bundles cost $200 each and include the following forms for free:
- One federal e-file (1065, 1120S, or 1120)
- One state e-file (1065, 1120S, or 1120)
- Five federal 1040 e-files
- One free state 1040 e-file
Finally, in terms of previous years’ products, you can choose between online and downloadable files.
TaxAct Mobile Version
TaxAct’s most significant advantage is its mobile app — TaxAct Express — available for iOS and Android.
The software uses touch ID and face ID support for security, which allows a quick and reliable login experience. Its design provides a seamless transition from desktop to mobile and vice-versa. Both TaxAct app and TaxAct.com website reviews are fairly similar, indicating good cross-platform functionality. They both support all four packages — Free, Deluxe, Premier, and Self Employed.
TaxAct Pricing and Plans
So, how much does it cost to use TaxAct?
First, there’s the TaxAct Free plan. On it, you’ll pay $0 for federal and $4.95 for state tax. It’s one of the cheapest tax software options for filing the latter. Learn more about the other budget alternative in our TurboTax vs TaxAct comparison below.
Secondly, there’s the TaxAct Deluxe with $24.95 for federal and $44.95 for state tax. The package allows itemization and the claim of several other deductions. Generally speaking, it’s considered ideal for investors, small business owners, and landlords.
Our TaxAct.com review wouldn’t be complete without mentioning that the Premier plan includes everything from the Deluxe plan, as well as the following:
- Stock, gains, and losses
- Sale of home
- Royalty and Schedule K-1 income
- Foreign bank and financial accounts
Premier’s cost of federal tax is $34.95, while the state filing is $44.95.
The most expensive of all TaxAct versions is the Self Employed package. It costs $64.95 for federal and $44.95 for state tax filing and contains everything from the previous plans, with added features like personalized business deductions. The edition also supports deduction maximizers and year-round resource planning.
Lastly, when it comes to pricing, users have noted two items as particularly important in many TaxAct reviews.
First, the platform offers the Xpert Help feature as an add-on with all plans. It increases the plan’s price as follows:
- Free: $35
- Deluxe: $74.95
- Premier: $94.95
- Self Employed: $139.95
Then, if you live in one of the nine income-tax-free states, you’ll avoid the TaxAct state filing fee altogether. These include:
- New Hampshire
- South Dakota
If that’s the case, make your decision based on the federal tax cost.
TaxAct Customer Reviews
While analysing reports about customer experience for this TaxAct review, we have found that users have generally positive attitudes about this company. The score of 4.3/5 on Influenster proves that.
Here’s what most users like about this vendor:
- Free plan is potentially more affordable than alternatives
- Xpert Help service is useful
- Simple and intuitive user interface
- Tax forms for different business structures
On the other hand, they don’t like the following:
- Inexpensive for simple tax forms only
- There are cheaper state return alternatives
- No audit support
- Lack of guidance
Here’s how this free tax filing tool fares against the competition, according to users’ TaxAct software reviews.
TaxAct vs TurboTax
The first significant advantage of TurboTax is that it doesn’t charge for state filings. The TaxAct state cost is $4.95 with its Free plan. Not much, but it won’t hurt to avoid a fee.
TurboTax is also renowned for its excellent free audit support, while TaxAct’s consists of just an FAQ page. It’s one of the most commonly listed TaxAct problems.
In terms of plans, TaxAct is significantly cheaper. TurboTax’s Premier federal tax costs $90, and the Self Employed is $120. With TaxAct, you’ll pay $34.95 and $64.95, respectively.
TaxAct vs H&R Block
Unlike TaxAct, H&R Block offers free state tax filing. The former’s Free plan charges $0 for federal (same as H&R Block) and $4.95 for state tax filing.
Let’s review how TaxAct compares price-wise. H&R Block Deluxe costs $49.99 for federal and $23.99 for state tax, which is slightly more expensive than TaxAct. The Premium, equivalent to TaxAct’s Premier, is $69.99 for federal and $39.99 for state tax — a difference also in favor of TaxAct. Finally, H&R Block’s Self Employed plan costs $104.99 for federal and $67.99 for state tax. Again, it’s pricey. Overall, TaxAct is the more economical option.
TaxAct’s audit support doesn’t have much to offer. H&R Block, however, has an add-on for this. But neither platform includes it in their free version.
FreeTaxUSA vs TaxAct
Most TaxAct reviews include information about the free federal filing and its low state tax of $4.95. TaxAct clearly has an edge since the base version of FreeTaxUSA charges $12.95 for state tax filing.
That said, FreeTaxUSA’s Deluxe plan is much cheaper than the TaxAct cost for other packages — $6.95. What’s more, it comes with audit support that’s a massive advantage over TaxAct.
TaxAct vs TaxSlayer
TaxSlayer has a base version that provides free tax filing for both state and federal, which beats even the TaxAct Free edition.
In general, TaxSlayer is quite affordable. Across all its other plans, the state tax cost is $39. In terms of federal tax filing, it’s $17 on Classic, $37 on Premium, and $47 on Self Employed. Users on active duty can also opt for the Military plan, which is the same as the TaxSlayer Classic with $0 for federal taxes.
Unlike TaxAct, TaxSlayer offers audit assistance. Even so, that’s only available to Premium users and higher.
We read and analyzed a large number of TaxAct reviews and most users agree that the platform’s Free plan is likely the cheapest way to file taxes. However, this vendor might not be the best option for you if you need a more inclusive package.
- Great mobile app
- Xpert Help Service
- Four different plans
- Simple user interface
- $100,000 accuracy guarantee
- Cheap state tax filing with TaxAct Free
- State return fees
- No audit support
- Expensive top-tier plans
- Lack of expert assistance
Is TaxAct free?
The Free version offers federal tax filing at no cost and charges only $4.95 for state taxes. That’s lower than most alternative offers, but it’s still not completely free. However, if you live in one of nine tax-income-free states, the Free plan might be great for you.
Is TaxAct safe?
The company encrypts all data before sending it to the IRS with a standard SSL protocol. Moreover, TaxAct’s PCI (Payment Card Industry) compliant. Both ensure your safety with this tax preparation software.
What bank does TaxAct use?
The company teams up with the Republic Bank & Trust Company to allow a direct fee withdrawal. To put this into motion, you’ll have to agree to a Refund Transfer Application and Agreement.
Is TaxAct good?
It offers a variety of advanced features for online tax filing. Most importantly, there are four different plans for personal and four more for business purposes. It's competitive in price and with some of the lowest state tax filing costs (with the Free edition). So, it would be easy to argue that TaxAct is a good option.
Is TaxAct legit?
Just looking at the number of positive TaxAct reviews is enough to conclude that this platform is legit. And there are over 80 million successfully filed tax reports to support this claim. Also, the platform guarantees accuracy and will reimburse you for errors with as much as $100,000.