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TaxAct is a tax preparation service that helps consumers prepare and file income taxes online. TaxAct’s services are provided as an integral part of its software, which offers customers access to more than 12 million federal forms for free. The company offers two plans: the Basic Plan ($19/year) and Premium Plan ($39/year).
TaxAct Online is a free tax preparation software that helps you file your taxes online. The software offers features and pricing in 2022.
TaxAct is an online tax program that handles all of the most common tax forms and schedules (both federal and state). W-2 import, a Maximize deductions, a maximum refund guarantee, and a mobile app are among the features.
TaxAct provides a free plan that includes the filing of Form 1040 and a state form for $39.95. You may submit a federal return for $34.95, and self-employed persons can file a federal return for $64.95, if you have investments, rental properties, or international bank accounts. For an additional cost of $35, you may get assistance preparing your tax return.
Go to TaxAct.com to learn more.
What We Recommend Using TaxAct
In the tax software market, TaxAct is a well-known brand. Small company owners, freelancers, and consultants use it to automate the preparation and submission of their tax returns. Because it’s great for company owners who need to file both a 1040 and a separate business return, we chose it as the best small business tax software overall. It provides a choice of paid plans for taxpayers in various scenarios, as well as handy tools such as a Calculator for Taxes and tax planner.
TaxAct also provides “Xpert Help,” which includes tax help from an enrolled agent (EA), certified public accountant (CPA), or tax attorney. You may request assistance on demand or set up appointments during regular office hours.
The Tax Act Is Especially Beneficial For
- Forms 1120, 1120S, or 1065 are required for businesses. TaxAct provides multiple tax filing alternatives for partnerships, C corporations (C-corps), and S companies (S-corps), including forms 1065, 1120, and 1120S, in addition to Form 1040.
- Taxpayers who desire to submit their federal returns for free may do so by filling out the following forms. Taxpayers who meet certain criteria may submit their federal tax returns for free. If you wish to claim basic child tax credits and the earned income tax credit and are paid via W-2s or received unemployment income, you’re eligible (EITC).
- Businesses in need of one-on-one tax advice: TaxAct Xpert Help links you with CPAs and other tax professionals who can assist you with your tax situation and answer your questions. There is no limit to how many times you may chat with tax professionals throughout your filing process.
For Whom TaxAct Isn’t a Good Fit
- If you’re a CPA or a tax professional who prepares returns for a number of customers, you’ll need to utilize the TaxAct Professional edition instead. Check out our list of the top tax software for tax preparers for more options.
- Taxpayers who need robust tax audit support: Although it offers a self-guided Audit Assistant tool, TaxAct doesn’t offer personalized and robust audit support like H&R Block and TurboTax.
Are you on the lookout for something unique? Read our guide to the best tax software for small businesses. We looked at a number of options in this guide and restricted our suggestions based on the cost of completing the average bundle of returns needed by most company owners.
Overview of the Tax Act
Go to TaxAct.com to learn more.
Pricing in TaxAct
TaxAct has a free version that lets you submit a Form 1040 and a state return for $39.95. The company’s paid online packages start at $24.95 for DIY federal tax filing and $74.95 if it includes Xpert assistance, plus $44.95 per state for state filing.
Free
You can submit federal returns for free with the Free plan, but you won’t be able to file schedules 1 through 3. It’s appropriate for those who have salaries, dependents, education expenditures, and retirement income. W-2 income, child tax credits, dependents, current students, and earned income credits are all handled by this package, which also includes prior-year import, a free account, and technical assistance.
Deluxe
Deluxe, TaxAct’s most popular plan, is ideal for homeowners that have a lot of deductions, credits, and adjustments. It contains everything in Free plus itemized deductions, child and dependent care, mortgage interest, real estate taxes, student loan interest, HSAs, and adoption credits.
Premier
This plan is for you if you need to declare rental properties or investments. It includes all of the features of the Deluxe version, as well as advanced features such as stock sales, house or other investment sales, rental property income, royalty and Schedule K-1 revenue, investment costs, and overseas bank and financial accounts. Users may also get priority assistance using screen sharing.
Employed by Yourself
The Employed by Yourself package caters to freelancers and self-employed taxpayers looking to maximize their deductions. It comes with all of the features in Premier as well as freelance income, business and farm income, personalized business deductions, depreciation calculations, and year-round planning resources.
Tax Returns for Corporations
TaxAct also allows you to file Tax Returns for Corporations for sole proprietors, partnerships, C-corps, and S-corps. All products are for preparing, printing, and e-filing a single return. For sole proprietors, you can file form 1040 and Schedule C for $64.95 plus $44.95 per state return. For partnerships, C-corps, and S-corps, you can file forms 1065, 1120, and 1120S for $109.95 per return, plus $49.95 per state return.
Features of TaxAct
TaxAct is a tax preparation program that comes with a slew of useful features and a lengthy list of tax promises to make preparing your return and maximizing your deductions a breeze. Here’s a rundown of some of its best features.
Maximize deductions
TaxAct employs a question-and-answer structure to offer you with a step-by-step tutorial to completing your taxes in the most efficient manner possible. This tool assists self-employed persons in identifying frequent work-related deductions. Salespeople, for example, may find significant tax benefits on business travel and meals, credit card processing fees, supplies, and other expenses.
Guaranteed Accuracy/Maximum Refund
TaxAct claims that their software is 100 percent correct, allowing taxpayers to get the greatest refund possible. TaxAct will repay your expenses if you get a decreased refund, increased tax burden, or incur a penalty or interest as a result of a TaxAct mistake. The corporation will reimburse you for the entire cost of the software as well as any difference between your increased tax burden and lesser refund. They’ll also reimburse up to $100,000 in legal or audit expenses.
Mobile App
App for TaxAct Express (Source: TaxAct)
The TaxAct Express app allows you to e-file your federal and state tax returns on your tablet or smartphone. Its top features include free federal extension filing, W-2 capture, IRS refund tracking, and enhanced support with live chat. The app supports all online products: Free, Deluxe, Premier, and Employed by Yourself. You can switch seamlessly from the app to the desktop and pick up right where you left off. It also allows you to view, print, or save your federal return as a PDF. Security is also a priority, as you can use touch ID or face ID support and a two-factor authentication security feature.
Calculator for Taxes
TaxAct Income Calculator for Taxes (Source: TaxAct)
The Calculator for Taxes lets you create what-if scenarios for future years in your current return. You can estimate your income and expenses for the next few years and then project changes to the information to estimate your tax liability for the current or following years.
Tools
Loan Calculator by TaxAct (Source: TaxAc)
TaxAct provides a number of tax tools that might be useful in a variety of scenarios. The Forms Assistant allows access to all accessible tax forms, while the Topics Assistant answers a variety of tax inquiries. You may utilize its Contribution Assistant to rapidly identify the deduction value of given clothing, home goods, and other products while registering a donation. The Loan Calculator may help you figure out how much you’ll have to pay each month for a house, car, personal loan, school loan, or any other fixed loan.
Importing Data
Regardless of your previous tax program, TaxAct lets you import the previous year’s tax return, including those coming from TurboTax or H&R Block. However, it can only be imported as a PDF, and you can only bring over your 1040—not including all of the supporting forms and schedules. You can also import W-2s or take a photo and upload them via the mobile app, and with paid versions, you can upload 1099-B information from your broker if it’s in a spreadsheet (a CSV file).
Your fee will be deducted from your refund.
You may choose to get your tax refund as a direct deposit or on a PayPower Card when you e-file with TaxAct, and you can subtract your filing expenses from the refund. The transaction is handled by Republic Bank, TaxAct’s banking partner. Deducting filing expenses from a direct deposit costs $19.99, while deducting filing fees from a PayPower Card deposit costs $9.99.
Customer Service and Usability
As with other tax filing programs, Features of TaxAct user-friendly navigation and an intuitive interview process, which is helpful for new users. It offers guided and unguided navigation that makes it extremely easy for filers to enter their information. The navigation bar also provides easy access to all other sections. TaxAct allows easy import of tax forms, such as 1099s, W-2s, and 1099-NECs. Another nice feature is a quick summary of each section that allows you to catch data-entry errors.
All of TaxAct’s products provide account and technical assistance by email, chat, and phone, as well as a large knowledge base with solutions to commonly asked issues. Xpert Help, which enables limitless screen-sharing access to a tax expert, is perhaps the most valuable addition to TaxAct’s support offering. On-demand assistance is available, and you may book a call with one of TaxAct’s CPAs, registered agents, or other tax professionals in select states.
Dashboard for TaxAct (Source: TaxAct)
Alternatives to TaxAct
Conclusion
TaxAct is an excellent option for freelancers, sole proprietors, and small company owners searching for a cost-effective online filing platform that includes all they need to get the job done. It’s less priced than most competitors, and it comes with a number of features and assurances that may help you simplify and save money on your tax file without having to pay for an accountant.
For a limited time, you may try TaxAct for free to see how it works for you.
The “taxact reviews consumer reports” is a review of the TaxAct software that was published on the Consumer Reports website. The review includes a comparison of features and pricing in 2022.
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