TaxAct Overview 2025: Professionals, Cons, And Alternate options

On the TaxAct homepage, there’s a model that’s “Free,” however provided that you meet a restricted set of {qualifications} and dwell in a state the place you don’t must file a tax return. For most individuals, the minimal is $39.99 for a state return and no value for a Federal return if in case you have easy submitting wants.

Because of this, most individuals utilizing TaxAct can pay anyplace from round $30 to $70 for federal returns and $39.99 for state returns. That makes it slightly cheaper than the larger guys, however not by a lot. And never free.

The one really free choice for TaxAct is thru the IRS Free File program, accessible to a restricted variety of households incomes $65,000 per 12 months or much less or folks with easy taxes who don’t have to file a state return. Should you qualify for the free tier and don’t want entry to tax assist, take into account these TaxAct alternate options.

What’s New In 2025?

For 2025, TaxAct up to date its pricing to simplify the associated fee for Dwell Tax Recommendation and state tax returns. Dwell Tax Recommendation is now a flat $60, whereas state returns are $39.99 every.

TaxAct additionally up to date to assist new tax legal guidelines and adjustments, corresponding to up to date 1099-Okay reporting necessities and up to date tax brackets, credit, deductions, and different limits adjusted for inflation.

Not a change, however one thing good to know is that TaxAct is the one on-line submitting software program for a lot of small companies, together with S Corps, to do their taxes with out downloading a Home windows-only software. Submitting for a enterprise begins at $149.99 plus $69.99 per state.

TaxAct is in the midst of the pack with regards to usability. It consists of imports of PDF variations of kind W-2 and 1099-B, however traders and people with many financial institution accounts will discover the shortage of assist for importing 1099-INT, 1099-DIV, and 1099-NEC irritating.

The navigation and interface are much like these of main opponents like H&R Block and TurboTax. Nonetheless, there are nonetheless some areas the place you received’t discover clear explanations of what you must enter and you will need to use the assistance characteristic or your favourite search engine to seek out the reply.

Given the worth, it could be good to see expanded assist assets, explanations for the place to seek out required tax data, and extra broad assist for importing all 1099 varieties. If it may add automated downloading for tax data from banks and funding corporations, it may bounce forward of most others.

TaxAct is a widely known software program rating among the many prime tax software program choices. These are a number of options that improve the submitting expertise for TaxAct customers.

Xpert Help (Human Tax Assist)

A prime cause to choose TaxAct is the included entry to a human tax professional on your tax questions. Whereas others provide you with restricted technical assist for no additional cost, you normally must pay a hefty added charge for assist from a human with questions on your tax submitting. Xpert Help prices $60 for the 2025 tax submitting season.

TaxAct makes use of questions and solutions to information customers by the software program. Filers can skip round within the software program, however it guides them again to the questions and solutions to make sure the whole lot is accomplished. Should you miss something, you’re introduced again to finish it with a warning message earlier than submitting.

TaxAct helps prior-year PDF tax imports, W-2 imports, and 1099-B imports from a number of brokerages. When customers add these paperwork, TaxAct inputs the data on behalf of the filer. This performance reduces the prospect for error and the time spent on tax submitting.

Observe: Once we examined TaxAct, we had issue getting our W-2 to add. You’ll be able to see this in our walkthrough video.

Along with W-2 imports, TaxAct can import 1099-B varieties and CSV information from brokers. This performance may prevent vital time in your tax submitting if in case you have inventory market investments.

TaxAct is without doubt one of the few on-line tax prep corporations that will let you connect Type 8949 on your crypto transactions. Be taught extra right here.

S-Corp And Belief Taxes On-line

TaxAct is noteworthy as the one main tax software program supplier that lets you do your taxes for an S Corp or Belief your self on-line. Some others promote downloadable variations for Home windows, leaving Mac customers caught. No matter your laptop, TaxAct lets you full Type 1120S and state filings for an S Corp or Belief on-line. That’s one thing you possibly can’t discover anyplace else.

TaxAct is a sturdy software program with out does not have many lacking options. Nonetheless, the few drawbacks that it does have may very well be deal-breakers for some filers. 

TaxAct has useful built-in calculators. Nonetheless, it solely highlights errors as soon as a consumer completes a piece. This may be helpful for making an attempt to “get into the stream,” however it could additionally make submitting a problem if you’re uncertain about how particulars match into the massive image and requires going again to sort things, making for extra backwards and forwards.

TaxAct limits its free submitting to filers with quite simple submitting conditions. Aspect hustlers, folks with HSAs, and people who contribute to retirement accounts won’t qualify for the Free tier. And even those that qualify totally free federal submitting nonetheless must pay for state submitting except they qualify for the restricted Free File program from the IRS.

TaxAct is rather less costly than H&R Block and TurboTax, however it falls behind its bigger rivals when evaluating user-friendliness. In truth, its expertise extra intently mirrors a number of low cost tax apps like TaxSlayer and FreeTaxUSA. 

Whereas FreeTaxUSA costs its merchandise according to discount tax software program, TaxAct costs its merchandise close to the highest of the market.

TaxAct 2025 Pricing And Plans

 TaxAct aligns its pricing with the complexity of a filers state of affairs. Filers who don’t consider themselves as “advanced” could also be stunned to seek out that they’re going to want to make use of the Deluxe version. 

Observe: TaxAct tends to regulate costs all through the tax season. December and January are the most effective time to lock in low charges.

How Does TaxAct Examine?

TaxAct positions itself as a premium product, however its efficiency is corresponding to finances tax software program. It definitely will get the job carried out, however the pricing leaves a lot to be desired. We in contrast TaxAct to FreeTaxUSA and TaxSlayer for a head-to-head characteristic evaluation.

Is It Secure And Safe?

TaxAct follows industry-standard safety practices and commits by no means to promote private data. Regardless of sturdy precautions, the corporate skilled a safety breach in 2016. Since then, it has elevated its safety measures, together with stronger encryption. Nonetheless, the previous incident continues to be a priority.

TaxAct requires multi-factor authentication the primary time a consumer logs in every year and has advanced password necessities. With TaxAct and some other financial-related login, following password and on-line safety finest practices is essential to maintain your data secure.

TaxAct’s normal customer support cellphone quantity is (319) 373-3600. Working hours are Monday – Friday, 8 a.m. to five p.m.

Tax filers get entry to Xpert Help for $60 when utilizing TaxAct. Customers can obtain recommendation from a tax skilled to make sure they’re submitting their returns accurately and maximizing deductions and credit with out the considerably larger prices of a conventional accountant.

TaxAct additionally options TaxAct Xpert Full Service, accessible throughout busy tax submitting months. Should you pay for this product, a tax professional will full your whole return for you from begin to end. This service requires a better charge than the free Xpert Help whereas doing all your taxes your self.

Why Ought to You Belief Us?

The School Investor workforce spent years reviewing all the prime tax submitting choices, and our workforce has private expertise with the vast majority of tax software program instruments. I personally have been the lead tax software program reviewer since 2022, and have in contrast a lot of the main corporations on {the marketplace}.

Our editor-in-chief Robert Farrington has been making an attempt and testing tax software program instruments since 2011, and has examined and tried nearly each tax submitting product. Moreover, our workforce has created opinions and video walk-throughs of all the main tax preparation corporations which you will discover on our YouTube channel.

We’re tax DIYers and desire a whole lot, similar to you. We work onerous to supply knowledgeable and sincere opinions on each product we take a look at.

How Was This Product Examined?

In our unique assessments, we went by TaxAct and accomplished a real-life tax return that included W2 earnings, self-employment earnings, rental property earnings, and funding earnings. We tried to enter every bit of knowledge and use each characteristic accessible. We then in contrast the consequence to all the opposite merchandise we have examined, in addition to a tax return ready by a tax skilled.

This 12 months, we went again by and re-checked all of the options we initially examined and any new options. We additionally validated the pricing choices.

Let’s reply a number of of the most typical questions that filers ask about TaxAct:

Can TaxAct assist me file my crypto investments?

TaxAct helps crypto submitting and permits customers to import .csv information from a brokerage account. Filers who pay for a .csv from CoinLedger or one other crypto accounting service can import their information into the software program.

Can TaxAct assist me with state submitting in a number of states?

TaxAct helps multi-state submitting. Customers should pay the state submitting charge for every state they file in.

Do I’ve to make use of the self-employed tier for my facet hustle?

Sure, facet hustlers who earned money or a 1099-NEC must use the Self-Employed tier to file their taxes.

DoesTaxAct supply refund advance loans?

No, refund advance loans aren’t being marketed by TaxAct this 12 months.

Does TaxAct supply any offers on refunds?

No, TaxAct isn’t at present promoting any refund offers.

TaxAct Options By Tier

Listed here are the options you possibly can anticipate for every model of TaxAct.