by Emily Zhu Updated January 09, 2024
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Founded in 1988, TaxAct’s goal is to provide quality tax preparation products at affordable prices. The company helps its customers navigate tax season without a large financial burden. Millions of federal tax returns have been filed with TaxAct, by consumers, business owners and tax professionals alike.
TaxAct offers multiple online do-it-yourself tax filing options. These options make it easier and more convenient to file. Plus, with step-by-step guidance, online tools and a maximum refund guarantee, you learn more about the filing process while getting the most out of tax season. All paid options also come with unlimited phone support, giving you help with specific account issues as they come up.
Some financial advisors specialize in tax planning and other financial planning services. Find an advisor who serves your area today.
TaxAct offers a range of filing options, all at affordable prices. There are four online plans: Free, Deluxe, Premier and Self-Employed. These options each support different tax forms and so your tax situation (and thus, which forms you need to file) will determine which option you need to use.
Overall, TaxAct looks at hundreds of tax deductions and credits to help you maximize your tax return. The company is also dedicated to making the filing process faster, easier and more convenient. Since TaxAct is an online process, it’s compatible with multiple devices. TaxAct also makes it easy to import your W-2 and last year’s returns.
TaxAct also has a $100,000 accuracy guarantee, which ensures that the calculations on your return are correct. If there’s a mistake on TaxAct’s end and you end up receiving a smaller refund or pay a larger tax bill, TaxAct will pay you the difference, up to $100,000. Each plan comes with a maximum refund guarantee. And if you ever need extra help or assistance, there’s unlimited phone support. With a commitment to providing a great user experience, TaxAct is dedicated to giving you an efficient and rewarding experience.
TaxAct’s Free option is completely free when it comes to your federal taxes. For this, it costs you nothing to have your taxes prepared, printed and e-filed. However, each state you file for will cost you an additional $39.95. The Free option is targeted at those with simple tax returns, which may include you if your W-2 is your main income tax form. However, you can also utilize this option if you have dependents, claim earned income credits, child tax credits, have retirement or unemployment income and more.
The filing process with TaxAct just requires you to answer simple questions about your finances. As you file, you get step-by-step guidance with tax tips and strategies, so you understand the process completely. There’s also a complete tax glossary to help you understand terms. And with real-time refund status, you’re able to see how different factors impact your final refund.
With TaxAct it’s also easy to import and store your tax returns for future years. You have unlimited access to your returns up to seven years after filing, so you can refer back to them as you file in the next year. You can also import data from returns prepared with TurboTax or H&R Block. You can transfer data directly from a previous TaxAct return. These features give you access to the prior year’s comparison report, which compares the returns from this year and last year to check if there are any discrepancies. If there are any errors, you get free amended returns at no cost.
After you file, TaxAct will provide a complimentary BluPrint financial savings report. The BluPrint report shares financial planning and tax-saving opportunities that may fit your financial situation.
This is TaxAct’s most popular plan because it covers the forms, deductions and credits that the average American will need. That includes forms for homeowners, those who itemize deductions, ex-students paying student loan interest and more. It costs $24.99 for federal filing and $44.99 per state return.
TaxAct Deluxe also helps maximize deductions through additional tools. For example, you can import data about charitable donations, which is a possible area for extra deductions.
At $34.99 for a federal return and $44.99 per state return, this option is designed for people with significant investments, rental properties and foreign accounts. Filers who need to report capital gains may also like the Premier option as it makes it easy to import stock data and to record your capital gains.
The most expensive and advanced option is TaxAct Self-Employed. It costs $64.99 for a federal filing and $44.99 per state. This option includes the features of the four previous options, plus some forms just for self-employed filers and small business owners. Notably, this option includes Schedule C. If you didn’t get a W-2 or if you just have any income reported on a 1099-MISC, this option is for you.
You can pay for TaxAct services with a credit card or debit card. You can also deduct the cost directly from your tax refund if you opt to receive your refund via direct deposit, and if your expected refund is at $50 greater than the processing fees. However, there's a $17.99 fee if you opt to pay for the filing with a portion of your refund.
The fastest way to receive your tax refund is to directly deposit the money into your bank account. The refund can be deposited into up to three different accounts. You can automatically split the money between both a savings and checking account. You can also use it to purchase U.S. Savings Bonds in $50 increments, up to $5,000.
TaxAct also allows you to track your e-file status of your federal and state returns. This gives you an estimate of when you’ll receive your refund.
TaxAct reduces your audit risk with TaxAct Alerts, which searches your returns for potential errors that can increase the risk of an audit. If you are audited, TaxAct partners with Protection Plus to offer full audit assistance.
You can enroll in Protection Plus when you file your return. Protection Plus covers your return for three years and guides you through the audit process. It handles all IRS correspondence and you also get assistance with tax debt and tax fraud incidents. This protection doesn’t come automatically with any TaxAct plan, so you will have to pay an additional cost.
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