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With the right tax software, you can file your taxes quickly and accurately. If you’re looking for great value in tax software, TaxAct is a strong choice.
TaxAct offers affordable prices compared with other software providers, such as TurboTax and H&R Block. Plus, it offers an easy-to-use platform that helps you navigate the tax filing process quickly. Read all of our top picks for best tax software providers.
TaxAct snapshot
Cost for DIY version
- Federal: $0, $29.99, $49.99 or $69.99.
- State: $39.99.
Does it offer a free version? Yes, with some restrictions.
Standout features
- Offers essential customer service at every price tier.
- Affordable.
- Best value for moderate to complicated tax returns.
Best for
You might like filing with TaxAct if you want:
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Helpful guidance
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Affordable pricing
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Plans for all tax filers
Not recommended for
You might not like TaxAct if you:
How much does TaxAct cost?
Taxpayers with simple tax returns can use TaxAct’s free option. You can qualify for the free version if you receive wages, unemployment benefits or retirement income. The free version also supports taxpayers who plan to claim the child tax credit or earned income tax credit. However, you’ll need to pay $39.99 to file your state income taxes using the free version.
If you don’t qualify for the free option, you can upgrade to other tiers. For $49.99 — currently offered on sale for $29.99 — you can use TaxAct’s Deluxe version. The Deluxe version lets you claim additional tax breaks, including itemized deductions, the child and dependent care credit, health savings account (HSA) contributions and the adoption tax credit. You can also claim expenses for dependents and education tax breaks.
The Premier version is $79.99 — currently offered for $49.99 — and is best for you if you want to claim additional types of income, such as the sale of a home or rental property.
For those who earn income through freelancing or a side business, the Self-Employed package is the best option, priced at $99.99 (currently $69.99).
Keep in mind that prices for tax-prep software fluctuate throughout the tax season. Check TaxAct’s website for the most up-to-date prices.
Tax-filing products offered by TaxAct
TaxAct offers four online tax-filing options: Free, Deluxe, Premier and Self-Employed.
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Free: TaxAct offers a free version, but it only includes a federal income tax return. Filing your state income tax return will cost $39.99 extra. In comparison with other online tax software providers, TaxAct’s free version is somewhat limited. To qualify, you’ll need limited income, such as wages, unemployment or retirement income. In addition, you can only deduct certain expenses, such as education expenses.
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Deluxe: If you receive additional income throughout the year and don’t qualify for the free option, you’ll need to upgrade to the Deluxe version. Deluxe includes everything in the free version, but lets you claim additional expenses, including itemized deductions, adoption fees, student loan interest and HSA contributions.
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Premier: If your tax situation is more complicated, you can choose the premier version. You’ll have all the options in the Deluxe version, plus the ability to report additional income sources. The premier option may be a great choice if you sold investments or received rental income.
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Self-Employed: Similar to other tax software products, the self-employed version caters to self-employed individuals. You can claim all income from your business along with personalized business deductions, including business asset depreciation.
Who should use TaxAct?
TaxAct is a great option when it comes to filing your taxes at an affordable price. TaxAct offers three paid versions that allow you to file all tax forms. In addition, it offers a free version you can use to prepare your federal income tax return. The cost ranges from $49.99 up to $99.99.
About TaxAct
The company was founded in 1998 in Cedar Rapids. Four members of the founding team worked for Parsons Technology, which was later acquired by Intuit Inc. The team decided to create 2nd Story Software, a company that provides do-it-yourself tax preparation software.
In 2004, the company received an investment of $89 million from TA Associates in exchange for a two-thirds ownership stake. Later, the company became the first to offer free online filing. Blucora purchased 2nd Story Software for $287 million in 2012. A year later, the company changed its name to TaxAct.
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