In a Nutshell
pros
- Offers step-by-step structure that makes filing taxes easy
- Free expert tax help
- More affordable than similar products
cons
- Fewer tools and features than other tax software
- Doesn’t offer an advance on your refund
TaxAct at a Glance
Pricing
Expert Help
Mobile app
Customer Support
Filing Fees
TaxAct: Plans and Pricing
TaxAct offers 4 options for filing your tax returns: Free, Deluxe, Premier, and Self-Employed. The option you choose will depend on a variety of factors. The Free option allows you to file your federal taxes at no cost. However, you’ll need to pay an additional $34.95 for each state you file in. This plan is well-suited for those who have a simple tax situation.
The Deluxe Plan is the most popular as it covers the forms, credits, and deductions that most Americans will need. It gives you access to everything the free version offers, and also lets you file a Schedule A and Schedule 1-6.
The Premier Plan is best for investors or those who earn rental property income. This plan makes it easy to calculate stocks, gains, and losses, as well as rental property income, royalty, and Schedule K-1.
The Self-Employed Plan is the most expensive and advanced option offered by TaxAct. This option includes Schedule-C, as well as all of the features of the 3 previous options. If you own a sole proprietorship, S-Corp, or LLC, this is the best plan for you.
Free
Best for simple filers, dependents, and those who need help with retirement income, unemployment, or college expenses.
Deluxe
Best for homeowners who need to consider student loan payments, childcare expenses, credits, deductions, and adjustments.
Premier
Best for investors who need to report capital gains and losses and for those who have sold a home or own rental property.
Self-Employed
Best for contractors, freelancers, and small business owners.
$64.95
How much does TaxAct cost?
As discussed above, TaxAct’s price depends on the plan you choose, whether or not you opt for the Xpert Full Service plan, and how many states you file in. Here’s an overview of the pricing:
Optional Add-Ons
While TaxAct used to charge for extra help, on January 5th, 2022, the company announced that it was making its Xpert Assist service free for all filers. With most other leading tax software companies, access to a tax professional comes at an additional cost.
Xpert Assist provides customers with access to tax experts via live chat. They can help you while you’re doing your taxes or review them for you before you file. The Xpert team consists of CPAs, EAs, attorneys, and tax specialists.
Those who don’t feel like doing their taxes can also opt for Xpert Full Service. After securely uploading your tax documents, you’ll be assigned a tax expert who will prepare your return from start to finish. Before filing, the expert will review the return with you to answer any questions you may have. The price for this additional service depends on the plan you choose:
- Basic: $99.95 with state taxes included
- Deluxe: $169.95 plus $44.95 for each state filed
- Premier: $249.95 plus $44.95 for each state filed
- Self-Employed: $279.95 plus $44.95 for each state filed
How does TaxAct work?
TaxAct offers a convenient and easy-to-use tax preparation and filing software. To get started, you need to choose which online product you want to use, then create an account. Next, you must enter your email address and verify your account by entering a code sent by TaxAct.
From there, you can set up a username and password and choose 3 security questions. Finally, you’ll need to agree to TaxAct’s terms and conditions. Once you have your online account set up, you’ll automatically be taken to your My Taxes screen, where you can add your tax return info.
Under the Basic info tab, you’ll need to enter your:
- Name
- Date of birth
- Social security number
- Filing status
- Dependent information
- Occupation
- Life events that could affect your filing
You’ll then need to add information under the Federal and State tab. Once you complete these tabs, you’ll be taken to a Review tab, where you can review any issues related to your returns. Here’s how TaxAct ranks potential issues:
- Red Alert: Inconsistent or incomplete information
- Yellow Alert: Possible inaccuracies
- Green Alert: Possible tax savings
After reviewing your information, you’ll sign and date your return. TaxAct then generates a personalized financial savings report that shows you future tax-saving opportunities. You can also see how your tax filings compare to national averages, and you can compare your returns year over year.
Is TaxAct reliable and safe?
While TaxAct is secure software, it has some mixed reviews online. ConsumerAffairs rates it 3.5/5, TrustPilot rates it 1.9/5, and customer reviews on BBB give it 1.04/5. However, it has an A+ rating from the BBB, although it is not BBB accredited. Additionally, TaxAct lists 3 safety credentials on its homepage. These include the DigiCert EV SSL Certificate, the TRUSTe Certified Privacy seal, and the SecureTrust Trusted Commerce certificate.
It’s committed to never selling your personal information, and users need to undergo multi-factor authentication the first time they log in each year. Password requirements are also complex.
Help and Support
In addition to live chat help via Xpert Assist, TaxAct offers support by phone and email. Here’s how to get in touch with TaxAct:
What about the TaxAct app?
TaxAct comes with a recently upgraded mobile app that’s now much easier to use. The app is free for iPhone and Android users. Key app features include:
- Touch ID/Face ID support for a secure log-in
- W-2 photo capture
- IRS return tracking
- Live chat support
All of TaxAct’s online products are supported by the app, and you can easily switch from the app to the desktop version without losing any of your progress.
Bottom Line
If you want to take the hassle and guesswork out of filing your tax returns, TaxAct may be the solution for you. With competitive rates and 4 plan options, the software offers a tax solution for everyone. Free access to tax experts definitely makes this software worth your money.
FAQs
Q: Is TaxAct completely free?
A: Customers who opt for the basic plan will have access to free federal tax filing without any restrictions.
Q: Is TaxAct a good service?
A: TaxAct is high-quality software that generally costs less than its competitors.
Q: Who can use TaxAct Free?
A: Anyone who signs up for the basic plan can use TaxAct for free. However, the free plan may not be suitable for all filers. It’s best for those who have simple tax situations.
