TaxAct Review 2025 – How Reliable Is This Tax Software?
TaxAct (founded 1998) is an affordable, user-friendly tax preparation service for individuals and small businesses. It balances cost with essential functionality for basic to moderately complex filings.
In this article, we’ll break down the pros, cons, and everything you need to know about TaxAct so you can decide if it’s the right tool for your tax needs.
Quick Summary
TaxAct is a reputable tax preparation service with a strong online presence that's become popular for individuals and small businesses seeking tax solutions.
While TaxAct doesn't have all the bells and whistles of more expensive competitors, it offers enough core features for most users.
Key Service Highlights:
- Affordable pricing with transparent rates
- User-friendly interface with W-2 imports and real-time error checking
- Support options: Phone, email, live chat (personalized expert advice costs extra)
- Security: Encryption and multi-factor authentication
- Deduction finding to maximize refunds
Pros & Cons
✅ Simple, easy-to-use interface
✅ Transparent pricing with no surprises
✅ Real-time error detection and W-2 imports
✅ Affordable option compared to competitors
✅ Good for self-employed and freelancers
✅ Maximizes refunds through thorough deduction searches
✅ Step-by-step guidance for filing process
❌ Limited support options at basic levels
❌ Personalized expert guidance requires extra fees
❌ Higher state filing fees compared to competitors
❌ Fewer advanced features for complex tax situations
❌ Not as comprehensive for multi-state filers
❌ May lack some tools needed for very complex returns
Our #1 Recommendation
TaxAct
TaxAct Pricing & Packages
TaxAct offers several pricing tiers to accommodate different tax filing needs, from simple returns to more complex situations involving self-employment or investments. Each plan includes federal filing with additional costs for state returns.
Plan Options:
| Plan | Price | Features |
|---|---|---|
| Free Plan | $0 Federal + $40 per state | • Good for individuals with simple tax situations • Supports basic forms like W-2s • Includes unemployment income and Basic Child Tax Credits • Step-by-step guidance • Automatic error checks and document uploads |
| Deluxe Plan | $50 Federal + $60 per state | • All Free Plan features Tools to maximize deductions • Good for filers with deductions in mortgage interest, student loan interest, and HSAs • Prior-year import and donation tracking |
| Premier Plan | $80 Federal + $60 per state | • All Deluxe Plan features • Supports investments, rental income, and cryptocurrency transactions • Advanced features like foreign bank account reporting |
| Self-Employed Plan | $100 Federal + $60 per state | • All Premier Plan features Business income and expense tracking • Personalized guidance including • Qualified Business Income deduction • Access to tax professionals |
*As of May 2025
TaxAct balances cost with features, making it an attractive option for budget-conscious filers. While state filing fees of $44.95 per return can add up if filing in multiple states, the federal filing remains affordable compared to premium competitors.
Verdict: 4.6/5
TaxAct Alternatives
| Service Package | TaxAct | TaxSlayer | TurboTax | H&R Block |
|---|---|---|---|---|
| Basic/Free | $0 | Free | Free | Free |
| Deluxe | $50 | Premium | Premium | Deluxe |
| Premier | $80 | Self-Employed | Premium Plus | Premium |
| Self-Employed | $100 | Self-Employed | Self-Employed | Self-Employed |
*As of May 2025
When selecting the best tax software, comparing options is essential. TaxAct competes with TaxSlayer, TurboTax, and H&R Block, each with distinct advantages:
TaxSlayer offers straightforward, affordable filing for simple to moderately complex returns with excellent value through budget-friendly pricing and a user-friendly interface without unnecessary add-ons.
H&R Block combines online convenience with in-person support at 9,000+ locations, featuring Worry-Free Audit Support and refund advance loans, though in-person consultations and advanced packages can be costly.
TurboTax delivers premium services with extensive support, TurboTax Live certified professionals, and QuickBooks integration for small businesses. Excellent for unique financial situations but comes at higher costs.
Recommendation: TaxSlayer for budget users, H&R Block for in-person support, TurboTax for premium guidance needs.
TaxAct User Experience & Filing Process
TaxAct's clean, straightforward interface makes navigating tax preparation easy. The guided step-by-step approach helps users complete returns accurately without overwhelm.
W-2 uploads and real-time error checking make filing fast and accurate, with guided navigation helping users complete even complex returns, though those with very complicated situations might find it lacking compared to premium competitors.
The platform is accessible to all experience levels, helping users complete taxes without the usual hassle.
Verdict: 4.6/5
Website & Mobile Experience
TaxAct offers both web-based and mobile access with a well-designed mobile experience that includes most desktop functionality.
The clean, responsive web interface and full-featured mobile version allow users to switch between devices during filing for convenient work at different times and locations.
Verdict: 4.7/5
TaxAct Core Services & Features
Tax Preparation Process
TaxAct's step-by-step guidance system navigates everything from simple returns to complex filings involving investments, rental income, or small business taxes.
The platform breaks down the intimidating tax filing process into manageable steps, searches for eligible deductions and credits to maximize refunds, and uses built-in accuracy checks to minimize errors.
While not as comprehensive as premium competitors for very complex situations, it offers enough features for most users.
Verdict: 4.5/5
Document Preparation & Filing
TaxAct efficiently handles electronic filing for federal and state returns, making submission seamless. The IRS processes approximately 150 million individual tax returns electronically each year through platforms like TaxAct.
Document uploads, particularly W-2 forms, work well and save significant time, while the error detection system catches potential mistakes before submission.
Verdict: 4.6/5
Tax Deduction Finding
One of TaxAct's strengths is searching for deductions and credits users might otherwise miss, particularly focusing on maximizing refunds. The platform excels at identifying common deductions like mortgage interest, student loan interest, and HSAs.
For self-employed filers, it helps with business expense deductions and the Qualified Business Income deduction.
Verdict: 4.5/5
Additional Business Services
Beyond core tax filing, TaxAct offers several additional tools and services:
- Audit Defense: $49.95 for professional help if audited by the IRS
- Refund Transfer: Pay filing fees from your tax refund
- Xpert Assist: $60 for tax professionals providing personalized guidance
- Data Import: Upload W-2s and other forms to make filing faster
- Small Business Tax Tools: Calculators and resources for business owners
- State Filing: $39.99 per state for filing in multiple states
- Year-Round Resources: Educational materials and tools for tax planning
Verdict: 4.3/5
TaxAct Data Security & Privacy
TaxAct uses encryption to protect sensitive information during filing and offers multi-factor authentication to safeguard accounts from unauthorized access.
Security measures appear robust with no reported data breaches, though users should maintain strong passwords and remain vigilant.
Verdict: 4.6/5
TaxAct Document Management & Record Keeping
TaxAct provides decent document storage and management capabilities, allowing users to access previous years' returns for year-to-year comparisons.
The platform supports document uploads and storage of important tax information, offering enough functionality for tax-related record keeping though not as comprehensive as dedicated management systems.
Verdict: 4.4/5
TaxAct Customer Support
TaxAct offers phone, email, and live chat support, though personalized tax expert advice costs extra - a limitation for those with complex questions. The responsive, knowledgeable support team answers questions quickly, though it's less accessible than some competitors.
Basic support suffices for simple tax needs, while complex situations may require paid expert support.
Verdict: 4.6/5
TaxAct Review Ratings Across Platforms
- TrustRadius: 8.5/10
- Capterra: 4.6/5
- G2: 1 review
- TrustPilot: 1.6/5
FAQs
1. Is TaxAct Good for Small Businesses?
Yes, TaxAct has tools for small businesses including features for expenses, deductions, and income. It supports business tax forms and industry-specific guidance so it’s a good and affordable option for small business owners.
2. Can I File Taxes for Multiple States with TaxAct?
Yes, TaxAct charges $44.95 per state for multi-state filings. The platform will walk you through filing multiple returns so it’s good for individuals and businesses with income in multiple states.
3. What if I make a mistake on my return?
TaxAct has accuracy guarantees and audit defense for an extra fee. These features will help you fix mistakes and have peace of mind during the tax filing process.
4. Does TaxAct offer Year Round Support?
Yes, TaxAct offers year-round access to its platform, tools and resources. You can plan for the next tax season, track important documents, and find educational materials to stay informed about your tax obligations.
Our Verdict on TaxAct
TaxAct is a budget-friendly and straightforward tax filing platform ideal for individuals and small businesses. However, it may lack the in-depth support and advanced features needed for users with highly complex tax situations.
If you're looking for a great balance of affordability, solid features, and excellent customer support, we recommend TaxSlayer.
TaxSlayer offers competitive pricing and all the tools you need for an efficient tax filing experience, plus it provides priority support for more complex returns.
Whether you're self-employed or filing a standard return, TaxSlayer’s simple interface and great value make it a standout choice. For users who prefer affordability with quality features and excellent customer service, TaxSlayer is the superior option.
Our #1 Recommendation
TaxSlayer
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