When it comes to filing taxes, it’s important to choose the right software that will make the process easy, fast, and accurate. One such software is TaxAct, which has been around since 1998 and has helped millions of taxpayers file their tax returns online. In this article, we’ll take a closer look at TaxAct, its features, pricing, and overall performance to help you decide if it’s the right tax software for you.
What is TaxAct?
TaxAct is a tax preparation software that allows you to file your state and federal taxes online. You can access the software either through the TaxAct website or by downloading the app onto your computer. The software is designed for both individuals and businesses of any size, and it allows you to prepare, print, and e-file your tax returns. TaxAct also has a mobile app that enables you to take photos of your W-2 forms to automatically fill in your tax information.
Features of TaxAct
TaxAct offers a wide range of features that make filing taxes online a breeze. Here are some of the most notable features:
Multiple filing options
TaxAct allows you to file your taxes in three different ways: Free, Deluxe, and Premier. The Free option is best for basic returns, while the Deluxe and Premier options are ideal for more complex returns that require extra support.
Unlimited phone support
TaxAct provides unlimited phone support to all customers, regardless of which plan they choose. This is a great feature for those who need extra guidance or have questions during the tax filing process.
Easy-to-use interface
TaxAct’s interface is designed to be user-friendly, and it walks you through each step of the tax preparation process. If you’re unsure about how to fill in a section, TaxAct provides helpful hints and explanations to guide you.
Import previous tax returns
If you’ve filed your taxes with TaxAct in the past, you can import your previous tax returns to speed up the filing process. TaxAct also allows you to import your W-2 forms and other tax documents from over 2,000 financial institutions.
Accuracy guarantee
TaxAct has an accuracy guarantee, which means that if you’re penalized by the IRS as a result of a TaxAct error, TaxAct will refund your software fees and pay the penalty or interest.
E-filing and direct deposit
TaxAct allows you to e-file your tax returns and receive your refund via direct deposit. This is a faster and more secure option than having a paper check mailed to you.
Pricing for TaxAct
TaxAct offers three different pricing plans: Free, Deluxe, and Premier. Here’s a breakdown of each plan:
Free
The Free plan is best for basic returns, and it includes the following features:
- Federal filing
- State filing
- Unlimited phone support
- Import of last year’s tax return
- PDF import of W-2s and 1099s
While the Free plan is a great option for those with simple tax returns, it does not include some features like technical support or audit support.
Deluxe
The Deluxe plan is ideal for those with more complex tax returns, and it includes all the features in the Free plan plus:
- Tax deduction finder
- Taxpayer help center
- Free email support
- Priority phone support
- Data import from Hamp;R Block or TurboTax
The Deluxe plan is a good option for freelancers and self-employed individuals or small business owners with no employees.
Premier
The Premier plan is best for investors and rental property owners, and it includes all the features in the Deluxe plan plus:
- Stock options and investment sales
- Rental properties and royalties
- Stock and bond sales
- Cost basis calculation
- Imports data from over 2,000 financial institutions
The Premier plan is a great option for those who have multiple investments or rental properties since it includes specialized tax forms like Schedule E.
Pros and Cons of TaxAct
Pros
- Low cost
- User-friendly interface
- Unlimited phone support
- Import previous tax returns
- Accurate tax preparation
- E-filing and direct deposit options
Cons
- No in-person support
- No free audit support
- Customer service waits can be long
- Limited support for state filings
Frequently Asked Questions (FAQs)
1. Is TaxAct easy to use?
Yes, TaxAct is designed to be user-friendly, with a step-by-step interface that guides you through the tax preparation process.
2. Can I file my taxes for free with TaxAct?
Yes, TaxAct offers a Free plan that allows you to file your federal and state taxes for free.
3. Does TaxAct offer audit support?
Only the Premier plan offers free audit support, but the Deluxe plan does offer help with preparing for an audit.
4. What types of tax forms does TaxAct support?
TaxAct supports a wide range of tax forms, including forms for self-employment, rental property, investments, and more.
5. Can I import my previous tax returns into TaxAct?
Yes, TaxAct allows you to import your previous tax returns and other tax documents to speed up the filing process.
6. Does TaxAct offer e-filing and direct deposit options?
Yes, TaxAct allows you to e-file your tax returns and receive your refund via direct deposit.
7. What is the accuracy guarantee for TaxAct?
TaxAct has an accuracy guarantee, which means that if you’re penalized by the IRS as a result of a TaxAct error, TaxAct will refund your software fees and pay the penalty or interest.
8. How does TaxAct’s pricing compare to other tax software?
TaxAct’s pricing is lower than many other tax software options, making it a good choice for those on a budget.
9. Does TaxAct offer technical support?
The Deluxe and Premier plans offer technical support via email and phone, but the Free plan does not offer technical support.
10. Does TaxAct offer in-person support?
No, TaxAct does not offer in-person support, as it is an online-only tax software.
Conclusion
TaxAct is a solid option for those looking to file their taxes online. With three pricing plans, a user-friendly interface, unlimited phone support, and an accuracy guarantee, TaxAct offers many of the features that users look for in a tax software. However, it may not be the best option for those with complex tax returns or those who require in-person support. Overall, TaxAct is an affordable, easy-to-use tax software that can help simplify the tax filing process.
