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TaxAct is a tax software program that simplifies the tax filing process for individuals, self-employed users and businesses. It is available nationwide and allows taxpayers to file both federal and state returns with optional unlimited expert help through Xpert Assist. Both online and downloadable software are available. TaxAct provides a $100,000 accuracy guarantee and a maximum-refund guarantee.
Pros & Cons
- Free tax extension file
- No in-person locations
- State return costs extra
TaxAct is a no-frills tax preparation software that offers step-by-step guidance for state and federal tax filing. While it provides access to customer support, it has fewer pro support options compared with some of its competitors.
Top TaxAct Reviews
It's not a bad tax service. Takes you step by step whatever tax forms you use. They ask you question after question to make sure you are getting every tax break possible. I have b...Read full review
I use [the] professional version and have for over 20 years. Highly recommend! Their customer service is top-notch. They are prompt to return phone calls and answer any tax or sof...Read full review
What is TaxAct?
TaxAct is a software program that assists individuals and businesses with the preparation and filing of their state and federal tax returns. It offers step-by-step guidance for preparing tax returns, including identifying deductions and credits, estimating tax liabilities and generating tax forms.
Whether you have a basic federal return or a complicated tax situation, TaxAct can help you identify deductions and credits for which you qualify. The software has various tax calculators and tools that enable you to estimate your tax liability and reduce your tax burden.
How does TaxAct work?
TaxAct works by guiding users through a series of questions to ensure accuracy. The software helps users identify all sources of income, deductions and credits applicable to their situation and provides hints and tips to ensure they maximize their savings. After completing a return, users can choose to file electronically or print and mail it.
The program is free to use until you are ready to file. Once you do file, your return will be on file with TaxAct for seven years.
Not including its business line, TaxAct has five individual plans to choose from, all of which allow you to do your taxes yourself. You can file under any plan either online or through downloadable software for an additional charge.
- This plan works well for straightforward claims. The company recommends it for filers with dependents, college expenses or retirement income. The package is suitable for W-2 income, dependents, child tax credits, current students, retirement income and more.
- The Deluxe plan is good for homeowners, as well as families with child care expenses or student loan debt. Customers get everything from the Free plan, plus itemized deductions and handling of mortgage interest and real estate taxes.
- This plan helps users who have investments or rental property. It offers prioritized support. The plan has the same features as the Deluxe plan, and it can accommodate stock transactions, the sale of homes or other investments, investment income expenses and rental property income.
- This plan is for self-employed taxpayers looking to maximize their deductions. Users get everything from the Premier plan and year-round tax resources; help with freelance, business and farm income; and personalized business deductions.
- Sole Proprietor
- This plan supports single-owner businesses. It allows inputs for business income, expenses and depreciation.
TaxAct charges the following for its plans at the time of publishing:
- Free: $0 federal, $39.95 state
- Deluxe: $46.95 federal, $54.95 state
- Premier: $69.95 federal, $54.95 state
- Self-employed: $94.95 federal, $54.95 state
- Sole proprietor: $159.95 federal, one free state return
Audit support and professional tax help through Xpert Assist can cost extra. Additionally, downloadable software versions of the above plans are more expensive.
Can you file back taxes with TaxAct?
Yes, you can purchase previous TaxAct versions dating back to 2012. However, e-filing a previous year’s returns is not supported. You will need to print and mail these returns.
Can you pay for TaxAct with your refund?
Yes, to pay for TaxAct with your refund, it costs an additional $17.99.
Can I import my previous tax returns into TaxAct?
Yes, TaxAct allows users to import their previous years' tax returns from TaxAct or other tax preparation software.
How does TaxAct keep taxpayers’ information safe?
TaxAct uses encryption and other security measures to protect users' information. The company also adheres to strict security protocols to ensure that user data is protected, such as Google/mobile authentication and trusted device verification. It will also notify you if someone else uses your Social Security number.
Is TaxAct legit?
TaxAct says it has filed over 90 million returns since 2000. TaxAct is authorized by the IRS for electronic filing, which means users can confidently file their returns electronically and receive their refunds faster. It also has a 100% satisfaction guarantee and a $100,000 accuracy guarantee that covers any liability, legal or audit costs of inaccuracies.
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I have talked with their customer support about how a field is calculated on the CA 540 return. Started the discussion in February 2023. It's now April and they still haven't been able to determine. I talked with an agent that spent over an hour trying figure it out. He ultimately reported it to development. They also ask me to file a "feature" request - it's actually a bug. I call back to determine the status, the agents want me to start over explaining to them what the problem is.
TaxAct doesn't seem to have an ability to keep track of discussions they have had with customers. Agents start blaming me that I won't tell them. I was told by the person who spent an hour with me to just mention his name, now agents are telling me he couldn't do that. Beware on using either TaxAct or Turbo Tax if you have any complexity in your return. Review the 1040 and state returns produce and make sure you understand how the calculations were arrived at. Neither TaxAct or Turbo tax will take responsible for errors in the return. You as the signer are responsible.
This is the 2nd year using. Last year no problem. This year I had problems correcting my State return and no one was able to help, not even the "expert asst". The representatives did try to help, but they are not experts. Each time I tried to resubmit, I was asked for a credit card to pay again since it was the only way to resubmit. I was given a refund of $101, but my return was rejected again. No one was able to help me correct the state return and resubmit without having to pay yet again. Needless to say, I will be using TurboTax next year. I hope it will be worth it. It can't be any worse. Why does it insist on asking for last year's AGI and pin number in order to pass it through. I don't understand this.
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I have used TaxACT for years. This year's 2022 return was flagged by the IRS. I tried to contact TaxACT and on the other end of the phone I found out I was talking to an answering service. No help at all.
I have the same story. I filed last year and was NOT exactly overjoyed with the service because the algorithm they use would not let me file a long form because I had several items that I could claim on my taxes as deductions. They literally want to have as little interaction with users as possible to maximize THEIR profits. NOW my problem is that I can't get back into my account to try and transfer as much information as possible - but I can't get pass the LOGIN screen. I know my username and password, but I can't get past the verification protocol because it WILL NOT SEND ME THE CODE TO MY CELLPHONE.
I've been trying for 2 days and today I finally got in touch with a real person to help me. Even though we spent 45 minutes on the phone trying different ways to get past the verification - I couldn't get in! The CSR suggested the ONLY way to continue is to start a NEW account - however that account would not be able to transfer information from my submitted TaxACT account from last year! I need HELP OR I'll use another tax program and then file with the BBB and FaceBook that TaxACT is a joke. It doesn't have to be like this.
They don’t take accountability for messing up my taxes not only was I forced to file papers, because their program messed up, so far my Statevtax was changed and my federal tax has not even been looked at yet because I had to send paper taxes. TAXACT IS A HORRIBLE SERVICE. DO NOT USE THEM.
I thought when I did taxes return on site it was free but they want to charge $107 for state and federal taxes totals. So it not free as I expected it to be free but like always it never free as always hidden fees and exactly like turbo taxes. They said to sent you need to upgraded to pay.
I was using TaxAct for about the past 5 years. I finally decided I had enough. I have a rental, and also deliver for a delivery service. So I had to pay for the business tax portion. The way Taxact shows their costs is absolutely suspect. My bill was always more by the time I was done, AND the program itself is made in a way that you often feel forced to pay for extra services. For instance, it posed a question regarding one of my "company's", but did not specify which company it was asking about. I went crazy trying to figure it out. It wasn't until I was done and submitted an answer I realized, the company it was asking about I no longer had, it was from the previous year. But if I did not answer the dam question, I could not proceed. Therefore, my taxes were submitted incorrectly to the IRS.
Aren't I lucky the IRS is too backed up to notice my mistake? Also, if you are forced to pay for live help, since they make sure you'll get confused filling out their questions, you'll wait on hold for an hour or more. Don't use TaxAct. I'm a professional and do all my own business taxes. This program is designed to trip you up, and rip you off. They are not upfront with the cost, and will not make it easy to complete your taxes without paying extra for live help.
I completed my taxes through TaxAct on 4/18/22 and I stress the word "completed". Entered all requested information, license number, PIN, etc. Pressed submit and presumed I was done, especially because my credit card was charged on that same date. I thought it was odd that I didn't get an email stating that all was well, but I get dozens of emails daily and I delete most of them, so I thought I had accidentally deleted theirs. On 4/30/22 I double-checked my account and found that my taxes had NOT been submitted (even though they charged my account). I accept the fact that I should have been more proactive in keeping track, but I also expected that TaxAct would have contacted me to let me know that the submission was still outstanding. And what held it up? Nothing that I can determine.
Questions that needed to be answered were the exact same questions that I had already answered originally. My Federal return is not a problem because I'm owed a refund, but I owe the state money and now my filing is late and I may get charged a penalty. Gee, I wonder if TaxAct will pay it for me? Anyone care to take bets on that? This is the last time I'll use TaxAct and I advise others to beware.
I've used TaxAct for many years with no problems and gave it a five-star review each year. This year it's unusable. In years past, the process was smooth. This year, the program skipped several sections in the federal tax return. On one occasion, I was stuck in a loop. Clicking on "continue" took me back to the topic. The last straw happened when I was prompted to address some alerts after completing my return. TaxAct said a form that was specific to me hadn't been filled out. It told me how to access the form. I clicked on the form, and it was prefilled out with my husband's name and social security number. I couldn't change the form to my name and social security number. So I will spend my Saturday starting over with TurboTax or something similar. I will not use TaxAct again.
I hired TaxAct, I had a call with an accountant, I uploaded my docs, I paid $279.95 for the "full service" option and then...nothing for over a week. I continue to let the account know I cannot access anything and am ignored. I cannot choose to "Schedule a Call" because the drop-down is greyed out and says "All agents are busy". It is also impossible to reach a human being by calling the TaxAct Customer Service #. I want a refund fo $279.95 for the "full service" option that resulted in no service. I am disgusted and other consumers should be, too.
Great business model they have. I'll be asking my credit card issuer for a full refund of the $279.95 on Monday. Beware. Learn from my mistake and do not use TaxAct. This corrupt and fraudulent entity needs to be put out of business. I'll be contacting the IRS and other government and consumer agencies to file formal complaints. I will also contact the Attorney General in Nebraska where TaxAct headquarters are located.
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