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Among the top leaders in online tax software, TaxAct stands out as a great choice for business owners as the only place you can complete some important tax forms online.
It’s historically our third-place winner for the big tax software programs, thanks to a combination of lower prices and more features than all but TurboTax and H&R Block.
However, with improvements at TaxSlayer and FreeTaxUSA, we see TaxAct losing its competitive edge in some areas. Keep reading our full TaxAct review below to learn why. You can also see how TaxAct compares in our list of the best tax software.
Quick Summary
- New all-inclusive bundle for $137.97
- Add live advice from a tax pro for $60
- "Free" filers still have to pay to file state returns
- High-end pricing for a mid-tier experience
TaxAct Details | |
|---|---|
Product Name | TaxAct |
Federal Price | Starts at $0 |
State Price | Starts at $39.99 per state filed |
Preparation Type | Self-prepared, and Live Tax Advice |
Promotions | None |
TaxAct - Is It Really Free?
What's New In 2025?
Does TaxAct Make Tax Filing Easy In 2025?
TaxAct Top Features
TaxAct Drawbacks
TaxAct 2025 Pricing And Plans
How Does TaxAct Compare?
Is It Safe And Secure?
How Do I Contact TaxAct Support?
Why Should You Trust Us?
Is It Worth It?
TaxAct FAQs
TaxAct Features By Tier
TaxAct - Is It Really Free?
On the TaxAct homepage, there’s a version that’s “Free,” but only if you meet a limited set of qualifications and live in a state where you don’t have to file a tax return. For most people, the minimum is $39.99 for a state return and no cost for a Federal return if you have simple filing needs.
As a result, most people using TaxAct will pay anywhere from around $30 to $70 for federal returns and $39.99 for state returns. That makes it a little cheaper than the bigger guys, but not by much. And not free.
The only truly free option for TaxAct is through the IRS Free File program, available to a limited number of households earning $65,000 per year or less or people with simple taxes who don’t need to file a state return. If you qualify for the free tier and don’t need access to tax help, consider these TaxAct alternatives.
What's New In 2025?
For 2025, TaxAct updated its pricing to simplify the cost for Live Tax Advice and state tax returns. Live Tax Advice is now a flat $60, while state returns are $39.99 each.
TaxAct also updated to support new tax laws and changes, such as updated 1099-K reporting requirements and updated tax brackets, credits, deductions, and other limits adjusted for inflation.
Not a change, but something good to know is that TaxAct is the only online filing software for many small businesses, including S Corps, to do their taxes without downloading a Windows-only application. Filing for a business starts at $149.99 plus $69.99 per state.
TaxAct XpertAssist. Screenshot by The College Investor.
Does TaxAct Make Tax Filing Easy In 2025?
TaxAct is in the middle of the pack when it comes to usability. It includes imports of PDF versions of form W-2 and 1099-B, but investors and those with many bank accounts will find the lack of support for importing 1099-INT, 1099-DIV, and 1099-NEC frustrating.
The navigation and interface are similar to those of major competitors like H&R Block and TurboTax. However, there are still some areas where you won’t find clear explanations of what you need to enter and you must use the help feature or your favorite search engine to find the answer.
Given the price, it would be good to see expanded help resources, explanations for where to find required tax information, and more broad support for importing all 1099 forms. If it could add automatic downloading for tax information from banks and investment companies, it could jump ahead of most others.
TaxAct Top Features
TaxAct is a well-known software ranking among the top tax software options. These are a few features that enhance the filing experience for TaxAct users.
Xpert Assist (Human Tax Support)
A top reason to pick TaxAct is the included access to a human tax expert for your tax questions. While others give you limited technical support for no extra charge, you usually have to pay a hefty added fee for help from a human with questions about your tax filing. Xpert Assist costs $60 for the 2025 tax filing season.
Screenshot by The College Investor.
Question And Answer Guidance
TaxAct uses questions and answers to guide users through the software. Filers can skip around in the software, but it guides them back to the questions and answers to ensure everything is completed. If you miss anything, you’re brought back to complete it with a warning message before filing.
Tax Imports
TaxAct supports prior-year PDF tax imports, W-2 imports, and 1099-B imports from multiple brokerages. When users upload these documents, TaxAct inputs the information on behalf of the filer. This functionality reduces the chance for error and the time spent on tax filing.
Note: When we tested TaxAct, we had difficulty getting our W-2 to upload. You can see this in our walkthrough video.
Import CSV Files From Brokerages
In addition to W-2 imports, TaxAct can import 1099-B forms and CSV files from brokers. This functionality could save you significant time on your tax filing if you have stock market investments.
TaxAct is one of the few online tax prep firms that allow you to attach Form 8949 for your crypto transactions. Learn more here.
S-Corp And Trust Taxes Online
TaxAct is noteworthy as the only major tax software provider that allows you to do your taxes for an S Corp or Trust yourself online. Some others sell downloadable versions for Windows, leaving Mac users stuck. Regardless of your computer, TaxAct allows you to complete Form 1120S and state filings for an S Corp or Trust online. That’s something you can’t find anywhere else.
TaxAct files S-Corp and C-Corp Returns. Source: The College Investor.
TaxAct Drawbacks
TaxAct is a robust software without doesn't have many missing features. However, the few drawbacks that it does have could be deal-breakers for some filers.
Errors Only Highlighted At The End
TaxAct has helpful built-in calculators. However, it only highlights errors once a user completes a section. This can be useful for trying to “get into the flow,” but it can also make filing a challenge when you’re unsure about how details fit into the big picture and requires going back to fix things, making for more back and forth.
Extremely Limited Free Filing (State Not Included)
TaxAct limits its free filing to filers with very simple filing situations. Side hustlers, people with HSAs, and those who contribute to retirement accounts will not qualify for the Free tier. And even those who qualify for free federal filing still have to pay for state filing unless they qualify for the limited Free File program from the IRS.
High Cost Given The Functionality
TaxAct is a little less expensive than H&R Block and TurboTax, but it falls behind its larger rivals when comparing user-friendliness. In fact, its experience more closely mirrors several discount tax apps like TaxSlayer and FreeTaxUSA.
Whereas FreeTaxUSA prices its products in line with bargain tax software, TaxAct prices its products near the top of the market.
TaxAct 2025 Pricing And Plans
TaxAct aligns its pricing with the complexity of a filers situation. Filers who don’t think of themselves as “complex” may be surprised to find that they'll need to use the Deluxe edition.
Plan | Free | Deluxe | Premier | Self Employed |
|---|---|---|---|---|
Best For | W-2 income, unemployment income, Earned Income Tax Credit (EIC) and child tax credits. | Itemizers, HSA contributions, People with child care expenses, student loan interest payments. | Landlords, investors | Self-employed people (including gig workers) |
Federal Pricing | $0 | $29.99 | $49.99 | $69.99 |
State Pricing | $39.99 | $39.99 per state | $39.99 per state | $39.99 per state |
Live Tax Advice | $60.00 | $60.00 | $60.00 | $60.00 |
| START HERE | START HERE | START HERE | START HERE |
Note: TaxAct tends to adjust prices throughout the tax season. December and January are the best time to lock in low rates.
How Does TaxAct Compare?
TaxAct positions itself as a premium product, but its performance is comparable to budget tax software. It certainly gets the job done, but the pricing leaves much to be desired. We compared TaxAct to FreeTaxUSA and TaxSlayer for a head-to-head feature review.
| Header |
| 
| 
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|---|---|---|---|
Rating | |||
Stimulus Credit | Free+ | Free | Free+ |
Unemployment Income | Deluxe+ | Free | Classic+ |
Student Loan Interest | Deluxe+ | Free | Free+ |
Import Last Year's Taxes | Free+ | Free | Free+ |
Snap Pic of W2 | Free+ | N/A | N/A |
Multiple States | Not advertised | $14.95 per state | Classic+ |
Multiple W2s | Free+ | Free | Free+ |
Earned Income Tax Credit | Free+ | Free | Free+ |
Child Tax Credit | Free+ | Free | Classic+ |
Dependent Care Deductions | Deluxe+ | Free | Classic+ |
HSAs | Deluxe+ | Free | Classic+ |
Retirement Contributions | Free+ | Free | Free+ |
Retirement Income (SS, Pension, etc.) | Free+ | Free | Free+ |
Interest Income | Deluxe+ | Free | Classic+ |
Itemize | Deluxe+ | Free | Classic+ |
Dividend Income | Deluxe+ | Free | Classic+ |
Capital Gains | Premier+ | Free | Classic+ |
Rental Income | Premier+ | Free | Classic+ |
Free Tier Price | $0 Fed, $39.99 Per State | $0 Fed, $14.99 Per State | $0 Fed, $0 State |
Deluxe Tier Price | $29.99 Fed, $39.99 Per State | $7.99 Fed, $14.99 State | $22.95 Fed, $39.95 Per State |
Premier Tier Price | $49.99 Fed, $39.99 Per State | $39.99 Fed, $14.99 Per State | $42.95 Fed, $39.95 Per State |
Self-Employed Tier Price | $69.99 Fed, $39.99 Per State | N/A | $52.95 Fed, $39.95 Per State |
| Cell | START HERE | READ REVIEW | READ REVIEW |
Is It Safe And Secure?
TaxAct follows industry-standard security practices and commits never to sell personal information. Despite strong precautions, the company experienced a security breach in 2016. Since then, it has increased its security measures, including stronger encryption. However, the past incident is still a concern.
TaxAct requires multi-factor authentication the first time a user logs in each year and has complex password requirements. With TaxAct and any other financial-related login, following password and online security best practices is critical to keep your information safe.
Contact
TaxAct's general customer service phone number is (319) 373-3600. Operating hours are Monday - Friday, 8 a.m. to 5 p.m.
Tax filers get access to Xpert Assist for $60 when using TaxAct. Users can receive advice from a tax professional to ensure they're filing their returns correctly and maximizing deductions and credits without the significantly higher costs of a traditional accountant.
TaxAct also features TaxAct Xpert Full Service, available during busy tax filing months. If you pay for this product, a tax pro will complete your entire return for you from start to finish. This service requires a higher fee than the free Xpert Assist while doing your taxes yourself.
Why Should You Trust Us?
The College Investor team spent years reviewing all of the top tax filing options, and our team has personal experience with the majority of tax software tools. I personally have been the lead tax software reviewer since 2022, and have compared most of the major companies on the marketplace.
Our editor-in-chief Robert Farrington has been trying and testing tax software tools since 2011, and has tested and tried almost every tax filing product. Furthermore, our team has created reviews and video walk-throughs of all of the major tax preparation companies which you can find on our YouTube channel.
We’re tax DIYers and want a good deal, just like you. We work hard to offer informed and honest opinions on every product we test.
How Was This Product Tested?
In our original tests, we went through TaxAct and completed a real-life tax return that included W2 income, self-employment income, rental property income, and investment income. We tried to enter every piece of data and use every feature available. We then compared the result to all the other products we've tested, as well as a tax return prepared by a tax professional.
This year, we went back through and re-checked all the features we originally tested and any new features. We also validated the pricing options.
Is It Worth It?
Despite performance improvements, TaxAct isn’t competitively priced for what it offers. Charging for state returns on the free tier isn’t consumer-friendly in our opinion. Even for the paid tiers, TaxAct isn’t a great deal in 2025, as others offer better features with a slightly higher cost or similar features at a lower price point.
It's somewhat less expensive than H&R Block. But H&R Block massively outperforms TaxAct, especially with imports and other convenience features. And tax software options TaxSlayer and TaxHawk offer comparable experiences with a lower price tag.
It’s also the best (and only) pick for S Corp and Trust taxes online, which is a big draw for many small business owners looking for DIY business taxes.
Find our picks for the best tax software here.
Try TaxAct here.
Common Questions
Let's answer a few of the most common questions that filers ask about TaxAct:
Can TaxAct help me file my crypto investments?
TaxAct supports crypto filing and allows users to import .csv files from a brokerage account. Filers who pay for a .csv from CoinLedger or another crypto accounting service can import their files into the software.
Can TaxAct help me with state filing in multiple states?
TaxAct supports multi-state filing. Users must pay the state filing fee for each state they file in.
Do I have to use the self-employed tier for my side hustle?
Yes, side hustlers who earned cash or a 1099-NEC will have to use the Self-Employed tier to file their taxes.
DoesTaxAct offer refund advance loans?
No, refund advance loans aren't being advertised by TaxAct this year.
Does TaxAct offer any deals on refunds?
No, TaxAct isn’t currently advertising any refund deals.
TaxAct Features By Tier
Here are the features you can expect for each version of TaxAct.
| Free | Deluxe | Premier | Self-Employed |
|---|---|---|---|---|
W-2 Income: Simple Returns | ||||
Unemployment Income | ||||
Retirement Income | ||||
Child Tax Credits | ||||
Earned Income Tax Credits | ||||
Stimulus Credits | ||||
Itemize Deductions | ||||
Deduct Student Loan Interest | ||||
Deduct Mortgage Interest | ||||
HSAs | ||||
Stock And Crypto Investments | ||||
Rental Properties | ||||
Home Sale | ||||
Foreign Financial Accounts | ||||
1099 Income | ||||
Deduct Small Biz Expenses | ||||
Small Biz Asset Depreciation |
Editor: Claire Tak
Reviewed by: Robert Farrington
The post TaxAct Review 2025: Pros, Cons, And Alternatives appeared first on The College Investor.
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