Two years ago, TaxAct made massive improvements to their online tax preparation software. But it sort of seems like they’ve been in a holding pattern since, without a lot of new features.
This year, there’s just one big one: in January, stock investors will be able to directly import transactions from brokerages, a major upgrade over previous versions if you’re in that situation.
Meanwhile, they’ve raised their rates, including creating a new “basic” paid tier for people with the very common situation of having dependents, without appreciably changing what they offer—although now that many companies have removed phone support for lower-paid tiers, TaxAct’s maintenance of that feature for the still-pretty-cheap “basic” tier is now noteworthy.
It’s still a great choice for people who have used the software in the past, but most people looking to file for the first time will find better value elsewhere. Here’s why in our TaxAct Review.
Quick Summary
- Easy navigation, but not enough import options
- Pricing is okay, but free filers will enjoy other options more
- Repeat customers will find value in saved data from prior years
TaxAct Video Review
Check out our video review of TaxAct and see how it works for you:
Navigation
One of TaxAct’s strength's is their easy to use Navigation Menu. Like most tax preparation software, TaxAct has a guided option where the software asks a series of questions, and prompts you to enter information in the necessary places.
The TaxAct questions tend to be a bit more complex than top of the line software packages like TurboTax or Credit Karma Taxes, but TaxAct makes up for the complexity by offering an easy to use menu. You can see this at work in this screenshot: I’ve checked off the types of income I have so TaxAct can ask more questions, while the left-hand menu shows where I am in the overall sequence.
In my opinion, TaxAct makes it easy to hop in and out of the software, so you can fill out your tax return as you have time. TaxAct’s navigation is superior to most tax prep software packages, including some of the more expensive options. It’s also, in my opinion, an attractive interface; it’s actually a pleasure to look at the screen!
TaxAct also has a mobile app that you can use to, among other things, snap a picture of your W2 for uploading. You can switch back and forth from the app to your computer seamlessly as they update in real time.
Ease Of Use
Unfortunately, TaxAct’s easy navigation and basic import abilities (like pulling your W2 directly from your employer) doesn’t overcome some of its downfalls. Simply put, for people with more complex tax situations, TaxAct isn’t as easy to use as H&R Block or TurboTax.
I struggled to figure out how to deduct part of my house (we rent out our basement), for example. When it came to figuring out how much I could contribute to my individual 401(k), I had a hard time using the form, and ultimately used an online calculator instead.
In the past, we haven’t recommended TaxAct for people who earn a lot of dividend income, or who buy and sell stocks frequently. In January, the Premier+ tier’s Stock Assistant will allow you to directly import transactions from your brokerage by entering your login credentials (which firms exactly are supported will be released in January.) You can also now import a CSV file. These features will make it much easier to use TaxAct if you have a lot of these types of transactions.
In general, the software is pretty easy to use. For basic filers who don’t have to itemize their tax returns, I think it’s a great solution. It’s also easy to use for people with basic itemizations, basic rental properties, and side hustles (with straightforward expenses).
Also, having used TaxAct in the past, I was impressed by how much information TaxAct saved for me. This made it easy to see how my taxes changed from year to year. Many tax software options offer that service, and for good reason. Having a year to year comparison of taxes can really help you understand what changed, and how that affects your tax refund.
Knowledge Base Articles
TaxAct doesn’t have in depth knowledge articles to help their users learn more about the tax system. However, it’s worth noting that the knowledge articles that TaxAct offers are easily accessible through the Help Navigation Menu on the righthand side of the screen. TaxAct stands out as one of the best “curators” of knowledge articles. They have some nice assemblages too, like this page for self-employed people.
TaxAct does make some info available through “popups” if you click on the “I” symbol (see screenshot). I did wish that was present in a few more places but overall they’ve done well to embed info on confusing terms throughout the software.
In most cases, the knowledge articles were sufficient for answering questions. Personally, I wish they had more “human friendly” explanations on some finer points (especially related to deductions and credits), but the knowledge articles were adequate on most points.
Their Tax Reform page is helpful on the basics and includes a nice calculator letting you estimate your 2018 taxes under the new law, but is light on detail.
Whereas several online tax software companies have now restricted phone support to higher-paying customers, TaxAct still makes phone support available to its lowest-paid tier.
From mid-January to April’s filing deadline, you can reach them M-F 8 am to 8 pm Central, Sat from 9 am to 5 pm Central, and Sun from 10 am to 5 pm Central.
The rest of the year phone support is available M-F 8 am to 5 pm Central.
Email support is also available to all. Free customers can get some very limited technical assistance by phone – limited to help signing in and making account changes. For actual tax questions free customers are restricted to email.
TaxAct Online 2018-2019 Pricing Plans
Most plans with TaxAct comes with unlimited phone based tax and technical support, although free customers now can’t get much on the phone beyond help with their TaxAct accounts. If you’re filing early, you should have no problem reaching customer support to get the individualized attention you need. The two highest-paid tiers also now include in-software video chat and priority access to email/phone queues.
TaxAct charges separately for State and Federal Taxes, but basic W-2 job holders who don’t need to claim deductions or credits will get the software completely free.
Unfortunately, if you need to claim any deduction or credit (including the Earned income Tax Credit or Dependent Care Tax Credit), you’ll have to upgrade, at least to Basic+ and possibly to Deluxe+. This is where H&R Block's Free option really shines as it's truly free. This year TurboTax is also including a free option that includes most of the dependent and earned income credits.
So unless your situation is really simple – you’re young and carefree, with no dependents and a single W2 job – you’re probably better served to look elsewhere.
Plan | Free | Basic+ | Deluxe+ | Self Employed+ | Premier+ |
|---|---|---|---|---|---|
Best For | People with a W2 job and no dependents | W2 job with dependents or college expenses and retirees | Homeowners, people claiming tax credits | Self-Employed & Side Hustlers | Itemizers, investors, rental property owners |
Federal Pricing | $0 | $9.95 | $29.95 | $49.95 | $34.95 |
State Pricing | $0 (You may pay $15 to import last year's return) | $19.95 | $36.95 | $36.95 | $36.95 |
Total Cost | $0 | $29.90 | $66.90 | $86.90 | $71.90 |
Who Should Use TaxAct Online 2018-2019?
I continue to like TaxAct for people who only have a W-2 job, and who don’t need to claim deductions or credits. Its interface is nice to work with, and additionally, more complex filers who used TaxAct in the past will appreciate the ability to compare their return this year to their return last year.
TaxAct is also appropriate for people who will pay extra for professional tax advice – including phone support. TaxAct only offers their “Audit Defense” to the top tier filers. This could be a good value if you have questions that you need answered.
The bottom line is that there are better options for free filers, investors, and self-employed individuals. The only ones who really benefit from TaxAct this year are repeat customers and those who want phone support at a relatively low price.
Find our picks for the best tax software here.
Try TaxAct for free hereTry TaxAct for free here.
Are you planning on using TaxAct? Share your experience below!
TaxAct Online 2018-2019 Review
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Navigation - 80
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Ease Of Use - 70
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Features And Options - 85
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Customer Service - 70
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Plans And Pricing - 80
Summary
TaxAct is great for repeat customers, but doesn’t compete with other companies for new filers.
Tanus says
I’ve used Taxact online service for the past 5 years. State eFile used to be included in the Taxact Deluxe online version and an additional state eFile was around $10. For 2017 online tax return, not only does the state eFile isn’t included in the Taxact Deluxe, each state eFile costs additional $37.
James Meyer says
Never will I use Taxact again. They charged me $151 for a VERY simple and basic return, and hung up on me when I called to inquire as to why I got such a high charge.
Tyler T. says
I’ve always used Taxact, but the $37 state charge is outrageous considering they used to include 1 free with the deluxe/plus level. $60+ dollars is too much, most likely will go ahead and give H&R blocks free program a shot.
Farrel Benton says
Lousy phone support. Suggested call back in an hour and yo start anew and reenter everything
Michael says
Seems like TaxAct just wakes up with a nice vacation dream. And to be able to afford his team, he decided to increase the price by 250%.
Last year I was managed to find an online version for $7.99. Does not seem to available any more.
Michael says
Meant to say “his dream” as suppose to “his team”…
Now I will need to find other source or sources.
Joseph Pulickal says
Does anyone know how to get help? I think I am trapped. My CA state return is rejected. The explanation they give is weird code. Taxact doesn’t allow me to resubmit. If they don’t contact me, I will stop the credit card payment. Bad support.
Robert Farrington says
You should probably call TaxAct customer service.
Angry says
HORRIBLE. This year they have raised prices. They have a new state exile fee and also make you upgrade for a form 1040. That’s another $29. I ended up paying $101ans all due to a glitch and they still wouldn’t refund the money. They pretty much stole my money
sparkles says
thanks for your review.
I have used taxact for many, many years.
This will be the last year. I always use the download version. Price went up 20, this year. Ended up paying 118; for two states and the freelancer version.
Downloaded and opened the program, and I could not import last years return, or really, do ANYTHING. Or I would get an annoying repetitive script error.
I spent most of today updating and upgrading my windows 8 to windows 10 just to get the least secure and basically obsolete browser, internet explorer 11. I am wondering what genius decided that entrusting our sensitive tax information to internet explorer 11 was a good idea???
But, once I did that, I could use the program and import last years return.
Again, won’t be using them. Ever again.
Just hope my experience helps someone.
Carol says
this program is terrible. have used for years, but gets worse each year. trying to put in dividend information and cannot close the form. stuck there for now. will not use this again. prices go up and quality goes down.
faith n says
I have used taxact since 2013 now i can’t get on keep rejecting signing in can’t find a phone number to call.
Kim says
We’re done with TaxAct . They use to be my go-to but no more. The prices are outrageous! $30 for a 1040 or Schedule A form? Nope! $30 to file state? Nope, Nope, nope!!!
Jessica Mary Westphal says
Have used TaxAct for past 6 or 7 years. Cost to file federal + state went from approx. $25 to $64. Customer service decreased price by $12 when I called. Nope, not gonna do it.
Johnny Skinner says
Run! Do not use their overpriced online product! If any issue arises and they sometimes do – this company is designed to be completely unresponsive. They simply have no support and that is their business model.
Pete C says
I upgraded to basic version from the free file to auto fill my form. Suddenly it went from $15 to $32 on a college kids return. I won’t make that mistake again. What a bait and switch type company. Very disappointed. And one final note, the software is not very user friendly.
Albert B says
1040A is no longer being offered for free. Switched to Turbo Tax, but did not get state thrown in for free. My state has it’s own free file system which I will use.
Greg says
After 7 or 8 years, this will be my last year using TaxAct. Price was $39 each for federal and state. It used to be free for paper filing and a modest charge for e-file. My taxes aren’t that complicated and while it only took me 30 minutes to do my tax return this year, I can fill out paper forms for $80. Honestly, for $100, I can hire someone to do my taxes for me.
Greed ruins everything.
S Nayak says
Stay away from Taxact. Their software has major bug for California Tax and customer service is horrible. They are a scam!!
I used TAXACT online software for filing my 2017 Tax. After filing, I received a penalty notice from Franchise Tax Board California for incorrect calculation of taxes. When I contacted Franchise Tax Board they explained to me that Taxact software has incorrectly calculated my taxes All the data that I entered into Taxact while filing the taxes were correct but Taxact software has major bug in determination of estimated tax payment penalty. To be specific, Taxact software does not check for 2016 AGI for determining the penalty. As per FORM 5805 instructions, for Part II question #5, if the 2016 AGI is greater than $150K, 110% of the Taxes paid in 2016 should be entered in Part II Line #5 in the form.. This requirement is very clear on FORM 5805 and very basic check to determine the penalty. But Taxact is missing this calculation. When contacted, the Taxact customer service supervisor (Jeff) states that this is missing in their software and hence the user need to read the instructions in Form 5805 and manually file the form. Ridiculous!!. Taxact expects the user to read 1000’s of pages of tax code ? I do not know how many other calculations are missing and /or incorrect in this software. If you received a estimated tax payment penalty, first file a accuracy guarantee claim at Taxact.
Cya_TaxAct says
I’ve used TaxAct download versions for the past 11 years. This year they are priced at $85 for the Deluxe and $90 for Premier download products. Repeat customers are never notified of releases and definitely are rarely offered discounts to stay or if they buy the next years release early. TurboTax Deluxe is everywhere for $40. Cya TaxAct.
A Taylor says
A Taylor
I have used TaxAct for years, but 2017 tax year will be my last. The ridiculous charge for the State program is way over the top.
Kevin says
I have used the downloaded deluxe version since 2005. They used to have the best pricing however over the the last 3 years their pricing has gone through the roof. I will be using another desktop product his year.
Vicki Krebsbach says
I decided to use TaxAct this year considering my past preparer increased her rates. File free is stated for simple forms. Ha. Single. No dependents. Contribute to HSA thru payroll/employer. Nothing else over the top. Got charged $29.95 for federal return. Still waiting to file state. Currently not available. Going to prepare thru credit karma. Hope I don’t get burned thru them as well.
Lena P. Neely says
I just got sticker shock when I went to purchase my 2018 Deluxe Federal and State Addition for Taxact. I paid $53 last year and now they want $89. I will have to find a better program because as much as I love Taxact, it is not worth it to me to pay this much.
Kimberley says
I have used TaxActOnline for years, so I know the way the site works fairly well ; even with their “updates” every year. But this year, I thought I’d done something wrong when they switched me to Deluxe – just because I wanted to include State and added one more form to my income. What used to cost me under $50 is now almost $80. That’s a significant jump in price! My financial situation that I’m reporting on has not changed. =/
Roger says
Never again TaxAct. Been using you since the late 90s. Your menu driven system last year was absolutely pathetic. Took me over 3 hours to figure out the secret of putting in home interest payment. All in all took me close to 30 hours to figure out your madness. Years prior you could jump to the actual form and put it in directly. Nope not last year had to go by your poor menu question system.
Daniel I Miller says
Been using TaxAct for three years. Won’t again after this year. Stupid, out-of-nowhere pricing. The $39+ charge for Republic Bank transfer for NO GOOD REASON (which I was able to back-track away from). I ended up, after going far back into the process and spending way-more time than ever before with TaxAct, I ended up paying $30, really ’cause I was over dealing with it.
Fair pricing and transparency is what I expected and received from TaxAct previously, but those things are gone, as am I.
Craig says
TaxAct is a joke. For the 2018 tax year (filing in 2019), the IRS moved the “Taxable refunds, credits, or offsets of state and local income taxes” (formerly line 10 on 1040 form) to a new Schedule 1 form. This is the only line I need to fill on that form and TaxAct wants another $30 to upgrade from Basic+ to Deluxe+ to include Schedule 1. Sorry, TaxAct… you lost this customer.
davek says
After using taxact for many years, the new pricing is terrible. in addition the minnesota property form would not accept my property Id number that i used last. year. then when i exited the program after not filling in the info for the M1PR form, when i went to e-file the federal and minnesota tax from they e-filed the M1PR form with no info. Now i have to file an amended from and was already charged for the m1pr. not happy, tried to call customer service, told all lines were busy and to call back later. not happy.
LG says
STAY AWAY!
I should have listen to the reviewers and not bother with Tax Act but I saw their TV commercial offering a promo Amazon gift card among others. I did my taxes with their Basic Edition this past weekend with TaxAct online and was never presented with that $100 bonus offer. I kept going back and forth to see if I was missing something. Compare to Turbo Tax and Tax Slayer that I used in previous years, this software is not user friendly. I kept following the steps and I ended up submitting my return still hoping that there would be an offer popping up at the very end but NOPE. NOTHING NADA ZILCH.
I tried to call and had to proceed twice through the automated selection only to get instructed to email them which I did. Got apologies from 2 people saying that nothing could be done since my form had been submitted. NEVER AGAIN. I’ll stick with Tax Slayer.
Mike says
Used tax act for the last time. The increased cost for a simple return is outrageous. Screw you.
Claire says
I used Taxact yesterday for what I thought was FREE. Even though I did not end up itemizing, I was charged $29.95 to file. I paid it because after all the work I did I didn’t want to start over with another company. Advertises free, lists all the criteria for free and then charged big time. RIP OFF!!!!
Also, ad on TV said you could get up to a $100 bonus. NEVER SAW MENTION OF THIS while preparing taxes. Another BIG RIP OFF!!!! Tried to call but they were unable to take my call BECAUSE THEY WERE “BUSY”.
Ted Maz says
TaxAct was my preferred platform for many years. For 2018 their “free basic” version is really down to the bones. You must upgrade to a paid version even if you have such a benign “complication” as income from interest/dividends (Sch. B), or an item like penalty for early withdrawal of a CD (Sch. 1). These situations are free in H&R Block and in Credit Karma. In addition, TaxAct would not permit you to even print your return in order to carefully examine it until you upgrade to a paid version. They could have at least permitted a draft print which would be non eligible for filing.
Talking about Credit Karma: be aware that this platform appears underdeveloped. I have tried for several weeks to alarm them about wrong tax calculation and nobody cares to respond. The system generated case ticket after case ticket, and that’s it. I have collected altogether 6 such tickets and zero responses. The issue is that the program “does not know” that IRA distributions are not 100% taxable, but are reduced for tax purposes when they contain non-deductible IRA contributions in prior years. The over-calculated taxes in such cases can be hundreds and even thousands of dollars!!! A shocking discovery!
TaxAct and H&R Block are free of this menace.
Don says
Been with Tax Act for more than 5 years, and basically it was OK. However, I also felt that pricing was getting really high, even if I took advantage of any early special pricing. Fast forward to filing time 2019, and now I have a question on inputs with their software for a couple of 1099s. Tried a chat and was told to call. Called and was told they weren’t taking calls. Emailed and they said they would get back in one to two “business days”. It’s been over a week with no response, so I can only conclude that they are only open no more than one day a week. I’m done with them. Customer support (which you pay extra for) is non existent.
Bert says
My wife did our taxes until she died leaving me to do 2016 taxes on my own. Used TA sucessfully just copying prior years.
2017 taxes (the year she died) a Federal form had hard-coded 2016 in it. I was ready to file except for this problem by mid-Feb. It didn’t get fixed until 1st week April.
2018 taxes all was great up until efiling. Somehow the s/w imported my wife’s status into the form someplace I can’t find which causes the IRS to reject the efiling. It did this even though I seleced ‘Single’ for filing status. TA’s solution- start over with a BLANK new return (and retype everything all the way thru!) or paper file. Oh yeah, it doesn’t print all the forms – allegedly it’s a printing problem but what can you trust? If I have to paper file this year – it’s the end of TA for me.
I despise testing software for vendors I’m paying. For 2018 return 2 hour-long support phone calls have to answers. Maybe I should just put all the wasted time into retyping? (I’ve already paid so retyping into another program would be worse, I think)
Pepe le Pew says
Overly greedy price increases for Fed & State chased us away after a dozen+ years of being a loyal customer. Not only lost us, but our kids as well.
Micah says
I’ve used taxact for about 5 years. This year was a markedly worse experience than the others. Poor user interface, along with impossible to find support, and finally marketing for more of their products incorporated into the return process just to confuse things fueled a reasoned but poor review when they asked me for it. Then, the cherry on top, they wouldn’t publish my review because ‘it didn’t meet their criteria’ with no explanation about what was wrong with it. I come here to warn anyone.. stay away.. 3.5 stars is extremely generous.
JLP says
I agree with the recent messages. This company has become overpriced and a bait and switch operation. I am done and so are my friends and family that I help do their taxes. A simple return cost $75 when it started at $27 and the upgrade is not revealed until the end after you invested the time to input all the data. The reason for the upgrade was a NYS refund from the year before, which the program knew about at my very first data entry screen because I used Taxact the year before and imported the data! It should have informed me about the “upgrade” from the start. Not at the end!
DAN DAVIS says
I’ve been using Taxact for several years and it’s really bad this year compared to previous years. Almost $100 to file a simple 1040 and get a direct deposit.
Schedule D form is not available and It told me I owed over $15k.
I switched to TurboTax and it was simpler and after I put money in an IRA for both of us I got $1000 back (without the IRAs I would have owed $1200).
Louis Werder says
Have used TaxAct for the last 8 years, and this will be my last. TaxAct online has reached a new low. It was difficult to use, was not user friendly, disorganized and could not go to the forms without extreme difficulties. Paid for premium but could not get any assistance at all. Could not find a number to call and was limited only to the online help which also was not very useful. Somebody should be fired for putting this piece of garbage software online. I shudder to think what their audit protection will be should that occur — or if I will even be able to contact them. Recommendations for the TaxAct people:
1. Put an information link next to EVERY entry item so that it will take you to a)applicable IRS regulation, or b)TaxAct suggested information and then let user decide which one they want.
2. Put a list of all forms used on page so that you can click to view entries on the applicable form. Telling me in review to check a numbered form does not help if you cannot find it.
3. Improved your help topics and add contact us phone numbers — especially for those that paid for the premium services.
4. Go back about 4 years to when it was a much easier and user friendly product. This year you have reached a new low.
Utterly disgusted in TaxAct Online for 2018.