Most years, TaxAct offers an option to auto-enroll your return before the tax season starts to lock in the lowest price of the season — because prices fluctuate throughout the season and tend to be highest closest to Tax Day.
TaxAct offers DIY online tax software that helps you file your tax returns neatly, completely and accurately. Even if you’re a tax whiz, having a guide streamlines the process and could save you time and money. These services scan hundreds of credits and deductions to ensure you get the biggest refund (or lowest tax bill) possible.
This 0K guarantee extends to those who are audited after filing with TaxAct. You can submit “reasonable,” documented, audit-related expenses, and the company will reimburse you, again, up to 0,000.
TaxAct Self Employed customers get everything at the Premier level, as well as the ability to calculate personalized business deductions, calculate depreciation and access year-round planning resources. You’ll also get prioritized support, screen sharing and phone conversations with live tax specialists.
How Does TaxAct Work?
Online tax filing services significantly ease the burden without paying personal-accountant-level dollars. But of the many available tax preparation companies, which is the best?
Still comparison shopping? We’ve reviewed these other popular online tax programs: TurboTax and H&R Block.
Still comparison shopping? We’ve reviewed these other popular online tax programs: TurboTax and H&R Block.
If you’re a “simple filer,” you can take advantage of free preparation for federal and state returns with TaxAct’s basic product.
Cost: Free to file a federal return, plus .95 per state tax return.
Mobile App for Apple and Android
Eligible filers can pay their TaxAct filing fees with a portion of their refunds to avoid an out-of-pocket cost.
Pay-With-My-Refund Option
No matter who did your taxes last year, TaxAct makes it easy to import your information— including data coming directly from H&R Block or TurboTax.
TaxAct Premier covers all the basics from the Deluxe version, plus options for investors, people earning royalties or K-1 income, rental property owners and foreign bank account holders.
Protection Plus Audit Defense
If you’re a freelancer or small business owner, you already know you’re going to be paying more in taxes — and that may mean you need more support to fill out your return accurately.
Price Lock Guarantee
You can also nab that low price by paying for the product early in the season, even if you’re not ready to file yet.
All TaxAct customers get access to its suite of basic features, guarantees and goodies. Those include:
Fees
For TaxAct Professional users (tax pros filing taxes for clients), TaxAct works with Protection Plus to provide audit assistance and tax debt relief services for clients, regardless of where you filed.
Compared with the better-known e-filing products, like H&R Block and TurboTax, TaxAct is pretty scaled down — and thus, more affordable.
- Product fee: Free to $64.95, depending on tier.
- State filing fees: $4.95 or $44.95 per state return, depending on tier.
TaxAct: Pros and Cons
Compared with the better-known e-filing products, like H&R Block and TurboTax, TaxAct is pretty scaled down — and thus, more affordable.
Pros
- Affordable: For filers with more complicated taxes, TaxAct is less expensive than most competitors, including for live help from a tax pro.
- Ease of use: TaxAct’s website is easy to navigate, and a clickable questionnaire makes it easy to figure out which product is right for you based on your tax information.
- FAFSA help: TaxAct offers a useful FAFSA guidance worksheet to make tax time a little less stressful for students.
Cons
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- No personalized audit support: TaxAct offers less robust, personalized audit support than TurboTax or H&R Block, though you are covered by its $100,000 guarantee.
- No refund advance: You’ll have to wait to receive your refund on the government’s schedule.
- State filing is pricy: For most filers, TaxAct’s state filing fees are higher than competitors’, and it doesn’t let you file state taxes for free through its free tier, as competitors do.
- Less customizable: You don’t have the option to upgrade to an edition with live CPA help, though that’s available in some tiers. You have to choose the tier that fits your tax situation and offers the level of live help you need, which could mean paying for features you don’t need.
Who is TaxAct Best For?
TaxAct offers four pricing tiers based on your tax situation: free, Deluxe, Premier and Self-Employed. Here’s everything you need to know about each (current as of January 2021 and subject to change).
While TaxAct might be simpler than its more expensive cousins in most ways, it’s the only one of the three that offers a FAFSA guidance worksheet.
What makes TaxAct stand out — in good and bad ways? Here are some of its benefits and drawbacks:
You’ll pay an additional fee for this service: .99 if you’re receiving your refund payment by direct deposit or .99 if you’re receiving it on a PayPower card.
If an error means you get a smaller refund or larger tax bill than you should have, the company will reimburse you for your trouble up to 0,000, as well as refund your TaxAct fees.