When it comes to zipping through your tax return with precision, the ideal tax software can be your best ally. Among budget-friendly contenders, TaxAct stands out as a solid pick.
TaxAct at a Glance
- DIY Pricing: Federal filings come at $0, $29.99, $49.99, or $69.99 depending on the plan; State filings are an additional $39.99.
- Free Tier Available? Absolutely, though it comes with some strings attached.
- Key Highlights: Reliable customer support across all pricing levels, cost-effective, and a top-notch option for anything from straightforward to intricate tax returns.
Who Should Pick TaxAct?
If you’re seeking:
- Practical and easy-to-follow instructions
- Wallet-friendly options
- Plans suited to a range of taxpayers
When TaxAct Might Not Be Your Cup of Tea
Give this a pass if you desire:
- An in-person tax filing experience
- Complimentary state tax submission
- Real-time chat assistance
Breaking Down the Costs
Simple tax filers often find the free option appealing. This no-cost version fits if your income comes from wages, unemployment benefits, or retirement payouts. It also supports claiming credits and deductions such as the Earned Income Tax Credit, Child Tax Credit, Health Savings Account contributions, adoption tax credit, plus allowances for dependents and education expenses.
The Premier plan, tagged at $79.99 but now discounted to $49.99, is designed for those with more complex income sources like home sales or rental income.
Freelancers and side hustlers will want to look at the Self-Employed package, priced at $99.99 with a promo rate of $69.99, to cover business income and specialized deductions.
Note: Keep in mind, prices for tax software tend to dance around during the tax season. Always eyeball the latest on TaxAct’s site for current figures.
TaxAct’s Product Lineup
There are four flavors of filing through TaxAct online: Free, Deluxe, Premier, and Self-Employed.
- Free Edition: Federal returns only; state filing tacks on $39.99. This version is pared down compared to rivals, with income restrictions and limited deductible options—think wages, unemployment, retirement income, and basic education expenses.
- Deluxe: Moves beyond the free tier by unlocking deductions like itemized expenses, adoption costs, student loan interest, and HSA contributions—ideal if you have diverse income streams.
- Premier: Step up to this when your tax affairs include selling stocks, rental properties, or other more complex financial matters. It bundles all Deluxe perks plus enhanced income reporting.
- Self-Employed: Tailored for freelancers and business owners, covering all business income with personalized write-offs such as depreciation on assets.
Useful Quick Facts
TaxAct, originated in 1998 in Cedar Rapids, was crafted by former Parsons Technology veterans—Parsons itself later merged into Intuit. In 2004, TA Associates invested $89 million for a majority share, fueling a push that saw TaxAct pioneer free online filing. Acquired by Blucora in 2012 for $287 million, the company adopted the TaxAct name in 2013.
Who Benefits Most from TaxAct?
If affordability combined with solid tax form coverage is your game, TaxAct fits well. It offers three paid tiers covering comprehensive filings, alongside its free federal-only filing. Prices stretch between $49.99 and $99.99 for paid options, catering to a broad spectrum of filing needs.