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Home » Taxes » Best Tax Software » Tax Software Companies » TaxAct Review 2023

TaxAct Review 2023

Updated: January 11, 2023 By Eric Rosenberg

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tax act 2023 review

Among the top three 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 also slightly cheaper than its larger competitors, making it a bit more friendly on your budget.

While TaxAct is the cheapest option of the three biggest tax software companies, it isn’t the cheapest. It has made huge software improvements to keep up with the likes of TurboTax, but still lags in integrations compared to the larger rival. A standout feature is that all tiers of TaxAct include access to a tax profession through Xpert Assist. That’s a huge value if you think you’ll need help with your taxes.

Keeping reading our full TaxAct review below to learn why. You can also see how TaxAct compares in our list of the best tax software.

TaxAct Review

Quick Summary

  • No added cost for questions to a Tax Pro with Xpert Assist
  • "Free" filers still have to pay to file state returns
  • High-end pricing for a mid-tier software experience
GET STARTED

TaxAct Details

Product Name

TaxAct

Federal Price

Starts at $0

State Price

Starts at $39.95 per state

Preparation Type

Self-prepared, Xpert advice, and Full-Service

Promotions

None

Table of Contents
Video Review and Walkthrough
TaxAct - Is It Really Free
What's New In 2023?
Does TaxAct Make Tax Filing Easy In 2023?
TaxAct Top Features
TaxAct Drawbacks
TaxAct 2023 Pricing And Plans
How Does TaxAct Compare?
Is It Safe And Secure?
How Do I Contact TaxAct Support?
Is It Worth It?
TaxAct FAQs
TaxAct Features By Version Level

Video Review and Walkthrough

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 $39.95 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 $47 to $97 for federal returns and $54.95 for a state return. That makes it a little cheaper than the bigger guys, but not by much. And hardly free.

The only truly free option for TaxAct is through the IRS Free File program, which is available to a limited number of households earning $65,000 per year or less. If you qualify for the free tier and don’t need access to tax help, consider these TaxAct alternatives.

What's New In 2023?

For 2023, TaxAct supports new tax provisions, such as the new 1099-K reporting requirements and tax savings related to the Inflation Reduction Act. These changes are standard across all tax providers.

The biggest news for this tax software came when TaxAct add the TaxAct Xpert Assist program for free for all users. Xpert Assist includes unlimited access to a tax professional and the option to have a tax pro review their return before filing. Most others charge a significant premium for help from a human tax professional.

Prices are also up this year across the board for Deluxe, Premier, and Self-Employed versions, which isn’t a shock in the current high-inflation period.

Related: TaxAct was recently acquired by Cinven, the parent company of Drake tax software (which is used by many professionals). We hope this significantly improves TaxAct in the future.

taxact 2023 review: expert assist for all tax returns

Does TaxAct Make Tax Filing Easy In 2023?

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 lots of 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 major competitors like H&R Block and TurboTax after a major upgrade last year. However, there are still some areas where you won’t find clear explanations of what you need to enter and will have to either 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 and explanations for where to find information in future editions and more broad support for importing all types of 1099 forms.

taxact 2023 review: supported services for tax filing

TaxAct Top Features

TaxAct is a well-known software ranking among the top three 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 is a TaxAct program that gives all users no extra-cost access to a tax pro.

taxact 2023 review: how Xpert Assistn Works

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 cuts down on both the chance for error and the time spent on tax filing.

Note: When we tested TaxAct, we had difficulty getting our W2 to upload. You can see this in our walkthrough video.

Import CSV Files From Brokerages

In addition to W-2 imports, TaxAct has added the ability to import 1099-B forms and CSV files from brokers. If you have stock market investments, this new functionality could save you significant time on your tax filing.

Also, TaxAct is one of the few online tax prep firms that allow you to attach a 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 type, 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 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 many 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.

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, but it falls well behind on user-friendliness. In fact, its experience more closely mirrors several discount tax apps like TaxSlayer and FreeTaxUSA. Whereas FreeTaxUSA prices its product in line with its limitations, TaxAct prices its products near the top of the market. 

TaxAct 2023 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 still need to use the Deluxe edition this year.

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

$46.95

$69.95

$94.95

State Pricing

$39.95

$54.95 per state

$54.95 per state

$54.95 per state

Xpert Assist

$0

$0

$0

$0

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
TaxAct Comparison
TaxAct Comparison: FreeTaxUSA
TaxAct Comparison: TaxSlayer

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,
$39.95 Per State

$0 Fed,
$14.99 Per State

$0 Fed,
$0 State

Deluxe Tier Price

$46.95 Fed, 
$54.95 Per State

$6.99 Fed, 
$14.99 State

$24.95 Fed, 
$39.95 Per State

Premier Tier Price

$69.95 Fed, 
$54.95 Per State

N/A

$49.95 Fed, 
$39.95 Per State

Self-Employed Tier Price

$94.95 Fed, 
$54.95 Per State

N/A

$59.95 Fed,
$39.95 Per State

Cell
START HERE
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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 using 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.

How Do I Contact TaxAct Support?

TaxAct's general customer service phone number is (319) 373-3600. Operating hours are Monday - Friday, 8 a.m. to 5 p.m.

All tax filers get access to Xpert Assist for free when using TaxAct. That means every user can receive advice from a tax professional to ensure they're filing their return correctly and maximizing deductions and credits. This is a significant change, as in years past Xpert Assist cost $35 to $139.95 for federal filing and an extra $39.95 to $49.95 for state returns.

TaxAct also launched TaxAct Xpert Full Service this year. 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.

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 2023, 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.

That being said, each of those companies either charges extra for access to tax pros or only include it on higher tiers. So if you plan to pay for pro support with one of these providers, you may save money by choosing TaxAct instead. It’s also the best (and only) pick for S Corp and Trust taxes online.

Find our picks for the best tax software here.

Try TaxAct here.

TaxAct FAQs

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 Version Level

Here are the features you can expect by version-level 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

TaxAct 2023 Review
  • Ease Of Use
  • Features And Options
  • Customer Service
  • Plans And Pricing
Overall
3.5

Summary

For 2023, TaxAct supports new tax provisions, such as the new 1099-K reporting requirements and tax savings related to the Inflation Reduction Act. These changes are standard across all tax providers. Find out what else is new and how it compares.

Pros

  • Prior year returns and W-2 form imports
  • Import stock information from brokers
  • Navigation is mostly easy to follow
  • Xpert tax advice is now free for everyone

Cons

  • Expensive for the software quality
  • Try TaxAct
Eric Rosenberg
Eric Rosenberg

Eric Rosenberg is a financial writer, speaker, and consultant based in Ventura, California. He holds an undergraduate finance degree from the University of Colorado and an MBA in finance from the University of Denver. After working as a bank manager and then nearly a decade in corporate finance and accounting, Eric left the corporate world for full-time online self-employment.

His work has been featured in online publications including Business Insider, Nerdwallet, Investopedia, The Balance, Huffington Post, and other financial publications. When away from the computer, he enjoys spending time with his wife and three children, traveling the world, and tinkering with technology. Connect with him and learn more at EricRosenberg.com.

TaxAct Review 2023

Editor: Claire Tak Reviewed by: Robert Farrington

Editorial Disclaimer: Opinions expressed here are author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, or other advertiser and have not been reviewed, approved or otherwise endorsed by any of these entities.
Comment Policy: We invite readers to respond with questions or comments. Comments may be held for moderation and are subject to approval. Comments are solely the opinions of their authors'. The responses in the comments below are not provided or commissioned by any advertiser. Responses have not been reviewed, approved or otherwise endorsed by any company. It is not anyone's responsibility to ensure all posts and/or questions are answered.
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