TaxAct Review 2025: Quality Service, Average Pricing
Wednesday, January 22, 2025
Product Name: TaxAct
Product Description: TaxAct is a DIY tax software that offers free federal returns for simple tax situations. State returns are $39.99. You can add on live tax assistance to any plan for $60.
Summary
TaxAct has four levels of service, with federal returns ranging in price from free to $69.99. You can add on live tax assistance to any plan for $60. This allows you to ask personalized tax questions to a live tax expert.
Pros
Cons
Filing taxes is an annual practice that most of us try to do as quickly as possible and at the lowest cost. TaxAct is a popular tax software that can produce the same results as the more expensive platforms. TaxAct used to be among the cheapest tax software, but the price has crept up over the last few years.
TaxAct offers a free plan plus three paid plans: Deluxe, Premier, and Self-Employed. Then, each plan has an upgraded version, allowing you to speak with a tax expert.
Deluxe supports unemployment income, mortgage interest, and itemized returns. Premier supports the sale of a home, the sale of investments, and foreign bank accounts. Self-employed supports business income.
TaxAct is a good alternative to the more expensive TurboTax, as long as you don’t qualify for the free version of TurboTax. If you’ve used TaxAct in the past and are comfortable with the software, you can go ahead and use it again this year —the price is middle of the road.
However, there are less expensive options if you are looking for new software, such as TaxSlayer.
TaxAct offers free federal filing for non-itemized simple tax returns that can include these income streams:
Unfortunately, it costs to use TaxAct if you earn self-employed income or sell investments. Filing an itemized tax return. State returns also cost $39.99.
There isn’t a maximum income limit to qualify for the free version of TaxAct. Instead, how much you pay depends on which taxable events you report.
| Version | Price |
|---|---|
| Free | Federal: $0 State: $39.99 |
| Free with Live Tax Assist | Federal: $60 State: $39.99 |
| Deluxe | Federal: $29.99 State: $39.99 |
| Deluxe with Live Tax Assist | Federal: $89.98 State: $39.99 |
| Premier | Federal: $49.99 State: $39.99 |
| Premier with Live Tax Assist | Federal: $109.99 State: $39.99 |
| Self-Employed | Federal: $69.99 State: $39.99 |
| Self-Employed with Live Tax Assist | Federal: $129.99 State: $39.99 |
Qualifying simple tax returns can file federal returns for free and state returns are $39.99. The tax situations that can file for free with TaxAct are similar to most online tax prep software.
You can prepare a non-itemized 1040 Individual Income Tax Return. It’s possible to claim these income streams, tax credits, and tax deductions in the Free edition:
Those currently making student loan payments will need to pay to use TaxAct to claim the student loan interest deduction. However, current students can deduct tuition and fees for the current year.
You can import returns from prior years, and you get tech support. However, you do not get any assistance with your actual taxes. If you have tax questions, you’ll have to add on their Xpert plan for $60.
These standard features can make filing a free tax return easier:
If you want to itemize or claim dependent care credits then you’ll need to upgrade to TaxAct Deluxe. Parents and homeowners are most likely to need this version.
The TaxAct Deluxe edition covers everything in the Free version, plus:
If you have charity contributions, you may appreciate the Donation Assistant that tracks the value of cash and physical donations.
You can look for answers to your tax questions in the free TaxAct online library, but if you want to speak to tax professional you’ll need to get the Xpert Assist which will cost an additional $60.
Premier takes has all the deductions allowed in Deluxe, and adds in several other types of income. If you sold a home, any investments, or received a 1099-k then you’ll need to upgrade to the Premier plan. These tax events report on a Schedule D (Capital Gains or Losses) and Schedule E (Supplemental Income and Loss).
Premier includes everything from Deluxe and:
The TaxAct tax software will guide you through the process of reporting your investment and real estate gains and losses. It’s possible to import the end-of-year brokerage documents from select online brokers. If a direct import isn’t possible, you can upload a CSV file.
You get tech support included, but if you have questions about your taxes you’ll need to add on Xpert Assist for an additional $60.
If you earn business, freelance, or farm income, you’ll need to opt for the Self-Employed version. This version allows you to file a Schedule C and Schedule F
Self-Employed incudes everything from Premier, plus:
The Self-Employed version also helps you calculate your business depreciation and next year’s estimated taxes.
As with the other plans, Self-Employed comes with tech support but if you have tax questions you’ll have to add on the Xpert Assist feature which costs an additional $59.99
You can add unlimited access to a tax expert to any plan (including the free plan) for $60.
If you need help you submit a request and a tax pro will call you. You can ask questions and share your screen so they can give you the exact guidance you’re looking for. They are available Monday through Friday, between 8 am and 5pm central time, between January 2nd and January 18th.
Between January 19th and April 6th, tax experts are available Monday through Friday 8 am to 9 pm and 9 am to 6 pm on weekends.
If you qualify for a tax refund, TaxAct won’t charge any extra fees for these payout methods:
There is a $49.95 fee if you choose to pay the TaxAct fees from your refund amount. Immediately paying TaxAct when you e-file with a credit card or debit card lets you avoid this extra fee.
While TaxAct doesn’t boast as many features as other platforms, there are several that can make preparing your taxes easy.
After selecting your TaxAct package, you complete your taxes with a step-by-step interview. You will answer different questions about these tax factors:
You can skip around sections and bookmark questions to answer later.
You can import last year’s tax return from any other software as long as it’s a PDF copy. The TaxAct mobile app can upload W-2 forms. Some online brokerages can upload documents, but you can also upload a CSV document.
The TaxAct Express app is available for Android and iOS devices. This free mobile app supports uploading your W-2 and driver’s license information. In-app chat support is available too.
Like other tax prep software, an indicator displays your estimated refund or tax liability as you work on your return.
Many freelancers and real estate investors choose to hire a tax expert to prepare their taxes to avoid overlooking deductions. The Deduction Maximizer tool can produce similar results by helping you find any relevant deduction.
As you complete your return, TaxAct looks for IRS audit flags and reporting errors. Your tax return has an accuracy guarantee of up to $100,000. If TaxAct miscalculates your results, you receive the cash difference for the actual refund or tax liability when another tax software produces the accurate result.
This guarantee applies to the consumer 1040 federal and state tax returns but not the business filings.
TaxAct offers free audit assistance, which is an online FAQs page. You can find answers explaining the different IRS forms or how to contact an IRS agent. The phone and chat support may not help you prepare for an audit.
They partner with ProtectionPlus to offer audit defense. This provides coverage for audit defense for three years after you file your taxes. The cost is not disclosed.
TaxAct provides one year of online access and six years of PDF access to each tax return. It’s possible to download and print a tax return during this period.
Most people will find TaxAct easy to use. The step-by-step interview can make sure you don’t forget any tax details. You can also bookmark sections and return to them later. It’s possible to get the same results but at a lower cost.
Spending the extra money might be worth it for complex returns requiring plenty of manual entry. TaxAct has limited upload options that can make reporting sold investment and real estate income prone to reporting errors.
Technical support is free and available by chat, phone, or email.
For personal tax advice, an add-on package is available. TaxAct provides an online tax glossary that can answer common tax questions. Those wanting one-on-one assistance may find another platform more desirable.
Filing your taxes can be a prime opportunity for identity theft. TaxAct uses standard industry security measures to protect your sensitive information.
Some of the best security practices include:
TaxAct encrypts each webpage as well.
Using other tax software can be better depending on your personal needs.
TaxSlayer’s free plan includes one free state, but you can only use the free plan if your taxable income is under $100,000. TaxSlayer’s free plans are reasonably priced; the Classic plan covers all tax situations and is $22.95 for federal and $39.95 for state.
You’ll have to upgrade to the Premium plan if you want access to a tax pro in order to ask tax questions. But the Premium plan is only $42.95 for federal and $39.95 for state.
Here’s our full TaxSlayer review for more information.
Many consider TurboTax to be the “gold standard” tax software, and they’ve lowered their prices again this year to be more competitive. The free plan includes one state return, so you could potentially file your taxes for completely fre.
Federal returns without any tax assistance will cost between $0 and $89, and state returns are $39 each. If you want to speak with a tax professional, it will cost between $49 and $169 for federal and $49 per state.
TurboTax also offers the option to have a tax pro do your taxes for you. This starts at $89 for the federal return and goes up from there, depending on the complexity of the return. The state return is $49 per state.
Here’s our full TurboTax review for more information.
H&R Block offers online and local tax prep services and offers more features than TaxAct. Its free plan includes one free state, which TaxAct does not.
Their paid plans start at $35 for federal returns and $37 for each state. Included in the do-it-yourself package is access to both AI and human chat to ask tax questions. You can also have your taxes done for you by heading down to your local H&R Block office.
Here’s our full H&R Block review for more information.
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