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
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.