TaxAct Initial Impression

Our Rating: 4.5/5 stars

Insight: TaxAct stands out with its robust accuracy and maximum refund assurance, surpassing most competitors in this regard. Its tax preparation service is user-friendly and straightforward to navigate. TaxAct truly shines with its Xpert Assist feature, allowing filers across all tiers to consult tax experts, although this service now comes with an additional fee.

Straightforward Tax Solutions for the Economically Minded

TaxAct stands as a leading online tax software provider for valid reasons. While its interface may appear simpler compared to some counterparts, it caters well to confident filers with its no-frills approach.

TaxAct users enjoy a plethora of tools and support options. These, coupled with the $100k Accuracy Guarantee, establish TaxAct as a top contender among online tax services.

Benefits:

• Assurance of maximum refund and accuracy

• Capability to import prior returns from alternative online tax software

Drawbacks:

• Absence of free state return filing

• Live tax assistance from experts now incurs a fee

TaxAct Overview

1. Pricing Structure:

• Free Edition: Complimentary federal tax filing + $39.99 for each state return

• Deluxe Edition: $49.99 for federal tax filing + $59.99 for each state return

• Premier Edition: $79.99 for federal tax filing + $59.99 for each state return

• Self-Employed Edition: $99.99 for federal tax filing + $59.99 for each state return

2. Guarantees Provided:

• Accuracy Guarantee: Assurance of accurate tax calculations and filings.

• Maximum Refund Guarantee: Commitment to maximizing your eligible tax refund.

• Satisfaction Guarantee: Confidence in the quality of service and support.

• Money-back Guarantee: Option to request a refund if dissatisfied with the service.

3. W-2 + Prior Year Import: Supported

4. Audit Support:

• Audit Defense available for a fee

• Assistance with questions and next steps after receiving an IRS notice

5. Access to Tax Experts:

• Free account and technical support offered on all tiers

• Expert assistance available for a fee

Tax Preparation Options and Pricing

TaxAct caters to a wide range of tax filers by offering diverse solutions. This overview of their product lineup and associated costs will help you determine the most suitable option for your needs. Please note that pricing may vary across versions and is subject to change.

1. Complimentary Edition

For straightforward tax returns, TaxAct’s Complimentary Edition is an ideal choice. This offering allows you to prepare and electronically file federal returns, including those involving dependents and students, at no cost (state filing is charged separately). It is tailored for 1040 tax filers who do not itemize deductions. While the free version excludes Schedules 1-3, it covers:

• Standard deduction

• Earned income credit

• Child tax credit

• Tuition and fees deduction

While Schedules 1-3 are not supported in the free version, users can conveniently upload their previous year’s return to expedite the process. TaxAct guides users through their returns with straightforward questions, offering comprehensive support options if needed. If your tax situation is uncomplicated, consider leveraging TaxAct’s Free Edition rather than opting for premium services.

2. Deluxe Edition

For those seeking greater flexibility with their return, TaxAct’s Deluxe Edition may be a preferable choice. In addition to the features offered by the free version, it accommodates most tax forms and schedules, including:

• Itemized deductions

• Child and dependent care

• Adoption credits

• Student loan interest

• Mortgage interest

• Real estate taxes

• Health Savings Accounts (HSAs)

Rest assured, you’ll retain access to all the benefits of the Complimentary Edition as well.

3. Premier Edition

If you require comprehensive support and access to all personal forms and schedules, consider TaxAct’s Premier Edition. Building upon the Deluxe version’s offerings, it encompasses:

• Investments and investment income expenses

• Rental properties

• Royalty and Schedule K-1 income

• Foreign bank and financial accounts

4. Self-Employed Edition

Tailored specifically for self-employed individuals, TaxAct offers a dedicated version of its software. This edition caters to small business owners, freelancers, independent contractors, and other entrepreneurs. TaxAct’s Self-Employed Edition simplifies income reporting, business expenses tracking, and depreciation calculations. Moreover, it provides valuable planning resources for year-round use.

Users of TaxAct’s Self-Employed Edition benefit from the Deduction Maximizer tool, which helps identify potential deductions comprehensively.

5. Other TaxAct Editions

In addition to the aforementioned versions, TaxAct provides solutions tailored to businesses, tax-exempt organizations, and tax professionals. Furthermore, there is a specialized TaxAct version designed for estates and trusts. Alongside its online software, TaxAct offers downloadable versions for users who prefer offline tax preparation methods.

Functionalities

TaxAct provides a range of robust features that cater to the diverse needs of tax filers. In addition to standard offerings found in most online tax preparation services, such as:

1. Importation of prior year’s return

2. PDF import functionality for returns prepared using alternative software

3. Seamless W-2 import capability

4. Access to tax calculators

5. Timely updates on prevailing tax legislations

However, TaxAct surpasses the ordinary with a suite of additional features tailored to meet diverse user needs:

1. Xpert Assist: Users can avail unlimited guidance from live tax experts for a fee, empowering them to file confidently and receive a thorough review of their taxes before submission.

2. Donation Assistant: This invaluable tool assists in assessing the resale value of donated items to charitable or non-profit entities, thus optimizing potential deductions.

3. Alerts: TaxAct diligently scrutinizes each return for errors or omissions that may trigger audits, while also identifying overlooked tax-saving opportunities during the filing process.

4. Real-Time Refund Status: Users can monitor their refund amount in real-time as they navigate through their return on TaxAct.

5. Automatic State Return Transfer: TaxAct streamlines the process by automatically transferring pertinent information from federal to state forms, enhancing efficiency.

6. ProTips: Users benefit from concise, actionable insights throughout the filing process, fostering improved tax outcomes and financial well-being.

7. My TaxPlan: Following tax submission, TaxAct offers complimentary guidance on optimizing next year’s refund through a personalized tax plan.

Refund Options

TaxAct users enjoy a plethora of refund options, including direct deposit to a bank account or receipt of a paper check, both esteemed choices. Moreover, users have the flexibility to load funds onto an American Express Serve® prepaid debit card or receive refunds in U.S. savings bonds. Notably, direct deposit remains the swiftest refund method available.

TaxAct Assistance

For those navigating tax queries, TaxAct provides a Help Center tailored to address common concerns. Technical and account assistance is readily available via telephone.

Phone support remains accessible throughout the year, with extended availability during tax season. Here’s a breakdown of the phone support schedule, reachable at (319) 373-3600:

From January 2, 2024, to April 7, 2024:

• Monday to Friday: 8 a.m. to 9 p.m. CT

• Saturday and Sunday: 9 a.m. to 6 p.m. CT

Exceptions to support hours:

• April 8-12, 2024: 8 a.m. to 10 p.m. CT

• April 13 and 14, 2024: 9 a.m. to 8 p.m. CT

• April 15, 2024: 8 a.m. to 12 a.m. CT

In addition to phone support, all TaxAct editions offer live chat assistance, screen sharing capabilities with tax specialists, and prioritized support.

TaxAct Xpert Assist

A notable support feature within TaxAct is its Xpert Assist service, providing users with unlimited access to tax experts. While this service was previously complimentary, it now incurs a fee, which varies depending on the selected product. The panel of experts comprises CPAs and EAs, offering the option to request a review of your return before filing.

TaxAct Xpert Assist facilitates direct engagement with a tax expert, enabling screen sharing for seamless discussion of inquiries. This personalized support sets TaxAct apart from competitors, making it a valuable consideration for those seeking additional assistance.

Security Measures of TaxAct

Ensuring customer data and tax returns remain secure is a priority for TaxAct, reflected in various protective measures:

• Implementation of stringent password requirements

• Authentication of user accounts

• Verification of devices

• Employment of SSL encryption

Moreover, TaxAct’s website offers security guidance and resources to enhance customer protection. Collaborating with the IRS and state agencies, TaxAct stays abreast of the latest security protocols, further cementing its commitment to safeguarding user information.

Audit Assistance from TaxAct

When it comes to taxes, facing an audit is a dreaded scenario. Hence, it’s vital to have a tax solution that offers support in such situations. TaxAct addresses this concern by providing audit support within its knowledge base and collaborating with ProtectionPlus, an additional service for enhanced audit protection at an extra cost.

ProtectionPlus extends coverage for three years and includes:

• Aid with federal and state audits

• Representation with the IRS or State on your behalf

• Preparation of correspondence on your behalf

• Assistance in cases of tax fraud

Enrollment for this premium audit service is available during the TaxAct filing process.

Guarantees from TaxAct

TaxAct stands out with its robust guarantees, offering two noteworthy assurances:

1. $100,000 Accuracy and Maximum Refund Guarantee: TaxAct confidently guarantees the unwavering accuracy of its software, ensuring that it will calculate the maximum refund you are entitled to based on your unique tax situation. In the unlikely event that an error in the software results in a smaller refund or a larger tax liability than you would have received using another tax preparation software, TaxAct will compensate you for the difference up to an impressive $100,000 and refund your software fees.

2. Satisfaction Guarantee: Underscoring its commitment to customer satisfaction, TaxAct offers a comprehensive satisfaction guarantee. If you are not satisfied with your TaxAct product, you can discontinue using it before billing occurs, without any financial obligation. However, it’s important to note that refunds are not available after printing or e-filing a tax return.

Summary

In essence, TaxAct’s competitive pricing renders it an appealing choice for individuals seeking a straightforward, DIY online tax solution. Additionally, for those with more complex needs or a preference for added assistance, TaxAct provides its Xpert Assist service for filing taxes with comprehensive support, albeit at an additional cost.