TaxAct Review 2025 – How Reliable Is This Tax Software?

Jon Morgan
Published by Jon Morgan | Co-Founder & Chief Editor
Last updated: February 13, 2025
FACT CHECKED by Lou Viveros, Growth & Transition Advisor
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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.

What Is TaxAct?

TaxAct logo

TaxAct is a tax preparation platform for individuals, self-employed professionals, and small businesses.

Founded in 1998 it’s become a well-known name by providing affordable and easy-to-use solutions for all types of tax situations.

The Internal Revenue Service handles approximately 150 million individual tax returns electronically every year, with popular e-filing platforms such as TaxAct being widely utilized [1].

TaxAct offers step-by-step guidance to help users navigate everything from simple tax returns to more complex filings involving investments, rental income, or small business deductions.

TaxAct boasts transparent pricing so users know exactly what they are paying for and no surprise fees. TaxAct’s simple interface and built-in accuracy checks help minimize errors and maximize refunds.

And it also has W-2 imports and real-time error detection so it’s good for first-time filers and experienced taxpayers. With a focus on value and simplicity, TaxAct is a top choice for budget-conscious taxpayers.

Our #1 Recommendation

TaxAct

TaxAct logo
Rated 4.62/5
4.6
Support
4.7
Price
4.6
Ease of Use
4.7
User Ratings
4.5
Features
4.6
Security & Privacy

TaxAct Review Ratings

We reviewed TaxAct based on our research and user feedback. Our ratings evaluate effectiveness, affordability, and overall user experience to see how well it meets taxpayer needs. Here’s how it scored in categories like support, pricing, and functionality.

Support - 4.6/5

TaxAct offers support through phone, email, and live chat to help users through the filing process. It is good for general questions but personalized advice from tax experts costs extra.

The support team is responsive and knowledgeable and answers user questions quickly. Not as accessible as some competitors but good enough for most users especially those with simple tax needs.

Price - 4.7/5

TaxAct is affordable with some of the lowest prices in the industry. It has transparent pricing so no surprises. Good value for individuals and small businesses. It balances cost with features so you don’t have to break the bank to file your taxes.

User Ratings - 4.7/5

Users love TaxAct because of the simple interface and competitive pricing. Many like the step-by-step guidance which makes it easy for new and experienced filers. The efficiency and ability to maximize refunds are often mentioned as a reason to use TaxAct for a stress-free filing experience.

Ease of Use - 4.6/5

TaxAct is user-centric with a simple interface that makes tax preparation easy. W-2 imports and real-time error checks make it accessible to all experience levels. The guided navigation helped us complete our taxes without the hassle.

Features - 4.5/5

TaxAct has a range of tools including deduction maximizers, W-2 imports, and audit support to cover most tax needs. It doesn’t have all the bells and whistles of the more expensive competitors but has enough core features for most users. Good for basic to moderately complex filings.

Privacy and Security- 4.6/5

TaxAct takes privacy and security seriously by using encryption to protect sensitive information during filing. They also offer multi-factor authentication to safeguard accounts from unauthorized access.

From my experience, their system feels secure, and I have not faced any issues with data breaches while using their platform. However, like any online service, it is important to create a strong password and stay vigilant to keep your information safe.

TaxAct Features and Prices

Group of person discussing TaxAct Features and Prices

Here are the features TaxAct offers:

  • Free Plan ($0 Federal + $40 per state filed): This plan is good for individuals with simple tax situations like students or W-2 employees. Supports basic forms like W-2s, unemployment income, and Basic Child Tax Credits. With step-by-step guidance, automatic error checks and easy document uploads the Free Plan is a good no-cost option for simple returns including filing federal taxes.
  • Deluxe Plan ($50 Federal + $60 per state): Includes all the features of the Free Plan plus tools to maximize deductions. Good for filers with deductions like mortgage interest, child care expenses, student loan interest, and health savings accounts (HSAs). The Deluxe Plan also has prior-year import and donation tracking to make tax preparation even simpler.
  • Premier Plan ($80 Federal + $60 per state): This plan adds investments, rental income, and cryptocurrency transactions to the Deluxe package. Good for those with more complex financial situations. Users can also use advanced features like foreign bank account reporting to optimize their tax returns.
  • Self-Employed Plan ($100 Federal + $60 per state): For freelancers, contractors, and small business owners. Includes all the features of the Premier Plan plus business income and expense tracking. Supports 1099 forms, business deductions, and industry-specific guidance including the qualified business income deduction so it’s a good option for self-employed filers. Users also get access to personalized guidance from tax professionals.

Additional Features

In addition to its core tax filing services, TaxAct offers a range of extra tools and services to help individuals and small businesses handle complex tax situations and get extra support throughout the year. Here are some of the features:

  • Audit Defense: $49.95, professional help if you get audited by the IRS.
  • Refund Transfer: Pay filing fees from your tax refund.
  • Xpert Assist: $60, tax professionals for 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, file multiple states.
  • Year-Round Resources: Educational materials and tools for tax planning throughout the year.

TaxAct Benefits

TaxAct workers discussing the Benefits

Here are five things we liked:

  • Easy to Use: TaxAct’s interface is designed to be simple. W-2 uploads and real-time error checking make it fast and accurate.
  • Affordable: TaxAct is one of the most affordable tax software options out there. Transparent pricing so you know what you’re paying.
  • More Refunds: The software looks for deductions and credits for you and helps you take all the ones you’re eligible for. This feature makes sure no refund is left behind including the earned income tax credit so it’s a great tool for those who want to maximize their returns.
  • Complex Returns: TaxAct has tools for investment income, small business taxes and 1099 forms. It’s good for self-employed and small business owners.
  • Add-Ons: TaxAct offers audit defense and expert assistance as add-ons so you can customize your tax filing experience based on your needs. These extras give you peace of mind during tax season.

TaxAct Downsides

  • Limited Support Options: TaxAct has phone, email and chat support but personalized guidance from tax pros requires an extra fee. This can be a limitation for those who need detailed help. Good enough for simple returns but those with complex tax situations may find the lack of included expert support a big minus.
  • Higher State Filing Fees: TaxAct’s state filing fee of $44.95 per return can add up if you file in multiple states. Federal filing is affordable but state fees are high so it’s not as good for multi-state filers compared to competitors who offer more affordable multi-state options.
  • Fewer Advanced Features: TaxAct has good tools for most but lacks some of the advanced features needed for very complex situations. Those with complex tax situations like business income or foreign accounts may find TaxAct not enough and may need to look at competitors with more advanced features.

Who Should Hire TaxAct?

A person Hired TaxAct for their use

Individuals and small businesses looking for an affordable and trustworthy tax solution should consider TaxAct. Here’s who will benefit most:

  • Individuals: For those who want a simple, easy-to-use platform to file taxes and get more refunds without paying premium prices.
  • Self-Employed and Freelancers: Good for gig workers and independent contractors who need to manage 1099 income, expenses, and deductions.
  • Small Business: Has tools for small business tax filing, business income, deductions, and expenses.
  • Budget Minded: Good for those who want an affordable option with transparent pricing for federal and state returns.

TaxAct Customer Testimonials

TaxAct Customer Testimonials

TaxAct Alternatives

A person searching for TaxAct Alternatives

When choosing the best tax software, you should compare different options to find the best one for you. TaxAct competes with other big names in the industry, each with its own features.

Here we’ll compare TaxAct to TaxSlayer, TurboTax, and H&R Block, and highlight the pros and cons.

TaxSlayer

TaxSlayer offers a straightforward and affordable tax filing experience that is perfect for individuals and small businesses with simple to moderately complex returns.

Its competitive pricing includes a free package for basic returns, with paid options like Premium and Self-Employed offering powerful tools for deductions, credits, and priority support.

While TaxSlayer may not have some of the advanced features or expert help found in TaxAct or TurboTax, it excels in providing excellent value for money.

The simple interface and easy-to-follow guidance make it a great option for first-time users or those who prefer a no-frills approach to filing.

For users looking for a solid, affordable option that balances both cost and features, TaxSlayer is the better choice, offering all the necessary tools for an efficient and budget-friendly tax filing experience without unnecessary add-ons.

H&R Block

H&R Block has online convenience with in-person support so it’s a good option for individuals and businesses. It offers various packages from free online for simple returns to premium for more complex situations.

One of its unique features is in-person assistance at over 9,000 locations so you have flexibility and expert help.

It’s very user-friendly with tools to maximize deductions and credits. Worry-Free Audit Support gives you peace of mind and additional financial services like refund advance loans make it stand out.

However, in-person consultation or advanced packages can get expensive.

If you want face-to-face support or financial products like advance loans H&R Block is a good option. But if you want an online only and more affordable solution TaxAct may be the way to go.

TurboTax

TurboTax is known for its simplicity and extensive support so it’s a top pick for those who want a premium tax filing experience. It has a step-by-step filing process so even complex returns are manageable.

Live expert help is available through TurboTax Live where you can consult with a certified tax professional or have your return reviewed before you submit.

TurboTax is good for personalized guidance, especially for those with unique financial situations like self-employed or investors. Its integration with QuickBooks is convenient for small business owners. But these features come at a higher cost than TaxAct.

While TurboTax is good for those who are willing to pay for premium services, budget-minded users may prefer TaxAct for its affordability and similar features for simple returns. TurboTax is good for those who want advanced features and more support.

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

TaxSlayer logo
Rated 4.82/5
5.0
Support
4.9
Price
4.7
Ease of Use
4.8
User Ratings
4.8
Features
4.7
Security & Privacy

Reference

  1. https://www.irs.gov/pub/irs-pdf/p55b.pdf

About The Author

Venture Smarter | TaxAct Review [y] - How Reliable Is This Tax Software?
Co-Founder & Chief Editor
Jon Morgan, MBA, LLM, has over ten years of experience growing startups and currently serves as CEO and Editor-in-Chief of Venture Smarter. Educated at UC Davis and Harvard, he offers deeply informed guidance. Beyond work, he enjoys spending time with family, his poodle Sophie, and learning Spanish.
Learn more about our editorial policy
Venture Smarter | TaxAct Review [y] - How Reliable Is This Tax Software?
Growth & Transition Advisor
LJ Viveros has 40 years of experience in founding and scaling businesses, including a significant sale to Logitech. He has led Market Solutions LLC since 1999, focusing on strategic transitions for global brands. A graduate of Saint Mary’s College in Communications, LJ is also a distinguished Matsushita Executive alumnus.
Learn more about our editorial policy

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