TaxAct Review 2024 (Tax Year 2023) (2024)

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Who Is TaxAct Best For?

TaxAct is best for people who don't want to pay a premium for higher-end software like H&R Block or TurboTax but are still looking for an efficient and streamlined interface to file their own taxes at a lower cost.

Filers who don't require much hand-holding will get the most out of the TaxAct software alone. However, all of TaxAct's plans also offer free access to experts to answer questions during the filing process, which is a huge value-add that started last year.

TaxAct is not as inexpensive as TaxSlayer. But its tax document upload and import features have a better track record of working well than TaxSlayer's do. If you're willing to pay more for this time-saving feature, TaxAct could be worth it.

TaxAct Details

• Cost of DIY filing: $0-$99.99 (+$39.99 ir $59.99 for state return, depending on package)
• 4 plans, including a free federal option for those who qualify
• Simple, intuitive interface
• 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 for an additional cost

TaxAct Pros & Cons

How Much Does TaxAct Cost?

Cost of DIY Options and What They Cover

• Free (for those who qualify).You can use this plan if you are paid through W-2s or collected unemployment income, and want to claim basic child tax credits and theearned income tax credit (EITC). Credits for childcare expenses aren't included.
• Deluxe: $49.99.The Deluxe package allows you to file for those childcare expense credits, along with credits and deductions for homeowners, health savings account owners, and those who are currently paying student-loan interest.
• Premier:$69.99.This package is built for those with investment income, rental property income, and foreign bank accounts. If you sold a home this year, this is also the package for you.
• Self-Employed:$99.99. Self-employed people have a unique tax situation with credits and deductions that vary depending on the structure of their business and the industry in which they work. TaxAct's Self-Employed package addresses these specific needs.

Circ*mstances That May Require Additional Fees

• You need expert assistance. TaxAct charges $59.99 for live expert assistance for any package, including free federal filing.
• You need state filing.If you live in one of the majority of states that require you to filestate income taxes as well, you'll have to pay an additional $59.99 per state, depending on the package. If you lived or worked in more than one state, you may have to pay for multiple state returns.
• You pay TaxAct from your refund.If you're expecting a tax refund, TaxAct will ask if you want to use part of it to pay for its tax prep services.It sounds more convenientthan pulling out a debit or credit card on the spot, but a significant processing fee applies.

How Does TaxAct Work?

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. The interface of each package is slightly different, providing those with simple tax returns and those with self-employment income with appropriately different experiences. You may also choose to have an expert file your taxes for you.

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.

All plans allow you to upload or import W-2s and 1099s for easy data entry.

TaxAct FAQs

Compare TaxAct

TaxAct vs. TaxSlayer

TaxAct and TaxSlayer have similar offerings at comparable prices. If you think you'll need more help with your return, TaxAct might be more suited for your situation. Even if you qualify for and choose the free version, TaxAct's service includes access to a live tax professional to help guide you through with no additional cost.

TaxAct vs. TurboTax

When it comes to cost, TaxAct is much cheaper than TurboTax. However, TaxAct's interface is not nearly as robust as TurboTax's. Paid TaxAct plans max out at $99.99, while TurboTax DIY packages run as high as $459. All of TaxAct's packages, including the free version, include access to a live tax professional to help guide you through your return if you have any questions. With TurboTax, you only get help with the higher-cost packages. If you have a particularly complicated return, you might be better off paying the premium for TurboTax.

Why You Should Trust Us: How We Rated TaxAct

We rate tax software on a 1-5 scale. The overall rating is a weighted average that considers five different categories when reviewing each platform, some of which are judged more heavily than others. They are:

• Cost (30%):Is there a free filing package? How does the cost of the paid tax preparation software compare to similar offerings from competitors?
• Value (20%):Does the cost justify what you get? Can you get the same features elsewhere for a lower price?
• User experience (20%):Is the tax prep software easy to use? Can you seamlessly upload or import documents? Is the guidance clear and non-jargony?
• Expert help (20%):Can you chat, email, or call a tax professional when you have questions? Is this feature included with the standard packages or does it cost extra?
• Support (10%):Is there an accuracy guarantee or audit support? Is customer service reachable and helpful?

We also considered the breadth of tax forms included in the various packages offered by each tax software company, with an emphasis on what's available at no cost.