TaxAct

Overview

TaxAct is tax-preparation software for personal and business returns, with online, downloadable, and mobile options. It is strongest for filers whose returns include investments, rental income, self-employment, or business activity. The main trade-off is clear: broad filing coverage comes with a narrowly eligible free tier and additional state-filing costs on several plans.

Key features

TaxAct supports investment income, rental income, and self-employment, and its business options cover partnerships, C corporations, S corporations, sole proprietors, and tax-exempt organizations. That makes it a plausible fit for returns beyond basic wages, while TaxAct Professional targets CPAs, enrolled agents, and tax preparers rather than consumers.

The Free Edition is limited to Form 1040 without attached forms or schedules, and eligibility depends on income and deductions. It covers situations such as W-2, unemployment, and retirement income, but excludes investment, rental, business, and self-employed income and expenses. About 40% of users qualified based on income and deductions, so the free plan is worth checking but cannot be treated as a general option for simple returns.

For consumer 1040 products, Xpert Assist provides unlimited live tax advice and assistance. TaxAct also offers data-import tools, deduction and credit calculations, and refund-maximization tools. Its $100k Accuracy Guarantee covers qualifying software errors, including certain costs and penalties, not every possible tax outcome.

Filing is available online and through downloadable tax-preparation software, with a mobile app for filing on the go, photographing documents, tracking progress, and getting expert help. Encryption, access controls, and information-security policies are used to protect data. TaxAct says more than 113 million federal returns have been filed through its software since 2000; the company was founded in 1998 and is headquartered in Dallas, Texas.

Pricing

Online consumer plans are priced per return. Free costs nothing for eligible federal returns, with state filing additional. Deluxe is $59.99, paid once for more complex taxes, including childcare and property, with state additional. Premier is $99.99, paid once for investment income, and Self-Employed is $109.99, paid once for business owners, freelancers, side hustlers, and gig workers; state filing is additional on both.

Other online products let users start without paying and charge when they file. Stopping before printing or e-filing incurs no charge. A refund may be requested within the purchase calendar year if the return was paid for but not printed or e-filed, subject to conditions. A first TaxAct consumer-prepared online 2025 federal and state return can cost one flat $70 under stated dates.

Download plans are also available per return: Basic Download is $44.99, paid once and includes five federal e-files, with state additional; Unlimited Access is $45, paid once for credentialed tax-expert access during the return. Deluxe Download is $139.99, paid once and includes five federal e-files and one state return. Premier Download is $149.99, paid once for investments, rental property, and foreign bank accounts, and includes one state return.

Desktop subscription options are Basic Desktop at $44.99 a month for five federal e-files, with state additional; Deluxe Desktop at $139.99 a month, Premier Desktop at $149.99 a month, and Self Employed Desktop at $164.99 a month, each with five federal e-files and one state return. The five-return allowance makes these options more relevant to people preparing multiple returns than to a single filer; the one-state inclusion on higher tiers should be weighed against the separately charged state filing on Basic.

Platforms

TaxAct supports web filing, downloadable software, and mobile access. The mobile app supports filing, document photography, progress viewing, and expert help, which is useful for handling parts of a return away from a computer.

Who it's for

Choose TaxAct if your return needs investment, rental, self-employment, or business coverage, or if you want a choice between online and downloadable preparation. It is less compelling if you expect free filing or need state filing included on an online consumer plan. Professional preparers may find its dedicated professional software more relevant than the consumer editions.

Pros and cons

• Pros: Supports investment, rental, and self-employment income, plus several business entity types, so it can serve returns that outgrow a basic 1040.
• Pros: Consumer 1040 products include unlimited live tax advice through Xpert Assist, and the Accuracy Guarantee covers qualifying software errors.
• Cons: The free edition excludes investment, rental, business, and self-employed income and expenses, and only certain taxpayers qualify.
• Cons: State filing is an added charge on multiple online and download plans, which can raise the total beyond the displayed federal-plan price.
• Cons: Desktop plans with five federal e-files are priced monthly, so their stated terms may be a poor match for someone preparing only one return.

Alternatives

H&R Block Online is another freemium web option, with iOS and Android apps; its Free Online plan is limited to simple tax situations and charges per state filed.

TurboTax may suit a filer seeking a free simple Form 1040: its Free Edition charges $0 federal and state for eligible returns, while its Do It Yourself Deluxe plan is priced at 79.

Instead is an alternative with a free platform plan that includes unlimited users, entities, e-file and print files, and multi-entity support.

CCH Axcess Practice is a paid web and mobile alternative with custom pricing.

Tax Series is a paid web and API option with custom pricing based on scope determined during proof of concept.

MyTAXPrepOffice is a paid alternative with a free trial and an Individual Pro license priced at $895 a year for a Tax Year 2026 license, plus sales tax.

UpTax is another paid option with a free trial.

CCH ProSystem fx Tax is a paid Windows alternative.

For broader comparisons, see Personal Tax Software, Small Business Tax Software, Tax Preparation Software, and AI Tax Software.

Verdict

TaxAct is a sensible choice for individuals or businesses whose returns need more than basic wage reporting, particularly when investment, rental, or self-employment income is involved. Its strongest reason to choose it is the range of return types paired with online, downloadable, and mobile preparation. Look elsewhere if your priority is a predictably free return or avoiding extra state-filing charges.