TaxAct Review 2025 – How Reliable Is This Tax Software?
TaxAct is a reputable tax preparation service with a strong online presence and it’s become a go-to for individuals and small businesses looking for tax solutions.
As business enthusiasts, we were curious if TaxAct lives up to the hype of its growing user base. So, we looked into its features, pricing, and overall performance to give you a full review.
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. Founded in 1998, it's grown into a well-known name by providing affordable and easy-to-use solutions for various tax situations.
While TaxAct doesn't have all the bells and whistles of more expensive competitors, it offers enough core features for most users. The platform excels at balancing affordability with essential functionality, making it a good choice for basic to moderately complex filings.
Key Service Highlights:
- Affordability: Transparent pricing with no surprises and competitive rates compared to industry alternatives.
- User-Friendly Interface: Simple interface with W-2 imports and real-time error checking for fast and accurate filing.
- Strong Support Options: Phone, email, and live chat support, though personalized tax expert advice costs extra.
- Security & Privacy: Uses encryption to protect sensitive information with multi-factor authentication to safeguard accounts.
- Deduction Finding: Helps identify eligible deductions and credits to maximize refunds, including earned income tax credit.
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 tax filing for simple to moderately complex returns. Though lacking some advanced features, it provides excellent value through its user-friendly interface and budget-friendly pricing without unnecessary add-ons.
H&R Block combines online convenience with in-person support at 9,000+ locations. Its strengths include user-friendly tools, Worry-Free Audit Support, and financial services like refund advance loans. However, in-person consultations and advanced packages can be costly.
TurboTax delivers premium services with extensive support and a step-by-step process. Its TurboTax Live feature provides certified tax professional assistance, and QuickBooks integration benefits small business owners. While excellent for those with unique financial situations, its premium services come at higher costs than alternatives.
For budget-conscious users seeking solid features, TaxSlayer is recommended, while those wanting in-person support might prefer H&R Block, and users needing premium guidance would benefit from TurboTax.
TaxAct User Experience & Filing Process
TaxAct's interface is designed with simplicity in mind. The clean and straightforward layout makes it easy to navigate through the tax preparation process. The guided step-by-step approach helps users complete their returns accurately without getting overwhelmed.
The platform strikes a good balance between simplicity and functionality. Its W-2 uploads and real-time error checking make the filing process fast and accurate. The guided navigation helps users complete even complex returns without confusion, though some users with very complicated tax situations might find the interface lacking compared to premium competitors.
TaxAct is particularly user-centric with a simple interface that makes tax preparation easy. The W-2 imports and real-time error checks make it accessible to all experience levels, with guided navigation helping users complete taxes without the usual hassle.
Verdict: 4.6/5
Website & Mobile Experience
TaxAct offers both web-based and mobile access to its platform, allowing users to work on their tax returns from various devices. The mobile experience is well-designed and offers most of the functionality of the desktop version.
The web interface is clean and responsive, while the mobile version maintains essential features without sacrificing usability. Users can switch between devices during the filing process, making it convenient to work on returns at different times and locations.
Verdict: 4.7/5
TaxAct Core Services & Features
Tax Preparation Process
TaxAct provides a step-by-step guidance system to help users navigate everything from simple tax returns to more complex filings involving investments, rental income, or small business taxes. The platform does an excellent job of breaking down the often intimidating process of tax filing into manageable steps.
The software looks for deductions and credits users are eligible for, helping to maximize refunds. Its built-in accuracy checks help minimize errors and prevent potential issues with the IRS. While not as comprehensive as some premium competitors for very complex situations, TaxAct offers enough features for most users' needs.
Verdict: 4.5/5
Document Preparation & Filing
TaxAct handles electronic filing efficiently, with the IRS processing approximately 150 million individual tax returns electronically every year through platforms like TaxAct. The platform supports e-filing for federal and state returns, making the submission process seamless.
Document uploads, particularly W-2 forms, work well and save significant time. The error detection system helps catch potential mistakes before submission, adding an extra layer of confidence to the filing process.
Verdict: 4.6/5
Tax Deduction Finding
One of TaxAct's strengths is its ability to search for deductions and credits that users might otherwise miss. The software looks for all eligible tax benefits, particularly focusing on maximizing refunds.
The platform is especially good at identifying common deductions like mortgage interest, student loan interest, and health savings accounts (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 takes security seriously, using encryption to protect sensitive information during filing. They also offer multi-factor authentication to safeguard accounts from unauthorized access.
The platform's security measures appear robust, with no reported issues of data breaches. However, as with any online service, users should create strong passwords and remain vigilant about their information security.
Verdict: 4.6/5
TaxAct Document Management & Record Keeping
TaxAct provides decent document storage and management capabilities. Users can access previous years' returns if they continue using the service, which helps with year-to-year comparisons and record keeping.
The platform allows for document uploads and storage of important tax information. While not as comprehensive as dedicated document management systems, it offers enough functionality for tax-related record keeping.
Verdict: 4.4/5
TaxAct Customer Support
TaxAct offers support through phone, email, and live chat to help users through the filing process. However, personalized advice from tax experts costs extra, which can be a limitation for those with complex tax questions.
The support team is responsive and knowledgeable, answering user questions quickly. However, it's not as accessible as some competitors, and those with simple tax needs will find the basic support sufficient, while users with complex tax situations may need to pay for the additional 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
Reference
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