Overview

TaxAct is a tax-preparation service with online, downloadable, and mobile options for individual and business returns. It suits filers whose income or filing needs extend beyond a basic wage return, as well as tax professionals who need dedicated preparer software. Its breadth is useful, but the free edition is tightly capped and state filing can change the price substantially.

Key features

TaxAct supports investment and rental income, self-employment, and business filing for partnerships, C corporations, S corporations, sole proprietors, and tax-exempt organizations. That makes it a practical option when a standard Form 1040 product is not enough. TaxAct Professional is aimed at CPAs, enrolled agents, and tax preparers, rather than consumers filing their own return.

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 it is worth checking eligibility but not assuming a simple-looking return will qualify.

For consumer 1040 products, Xpert Assist provides unlimited live tax advice and assistance. TaxAct also offers tax-data import, deduction and credit calculations, and refund-maximization tools. Its $100k Accuracy Guarantee covers qualifying software errors, including certain costs and penalties; it is not a blanket guarantee against every filing mistake. The mobile app supports filing on the go, photographing documents, viewing progress, and getting expert help.

TaxAct says it uses encryption, access controls, and information-security policies to protect data. The company, TaxAct, LLC, is identified as a Taxwell company; it was founded in 1998 and is headquartered in Dallas, Texas. Its software has been used to file more than 113 million federal returns since 2000.

Pricing

TaxAct uses a freemium model. Online filing starts at $0 for eligible standard returns, and other online products let users start free and pay when filing; stopping before printing or e-filing incurs no charge. State filing is an additional cost for the free, Deluxe, Premier, and Self-Employed plans, so the federal plan price is not necessarily the full bill. A first TaxAct consumer-prepared online 2025 federal and state return can cost one flat $70 under the stated dates. If billing is complete but the return has not been printed or e-filed, a refund may be requested within the purchase calendar year, subject to conditions.

Free — free: Federal filing for eligible standard returns; state filing costs extra. This is for taxpayers whose income and deductions meet the Free Edition limits, not filers with investment, rental, business, or self-employment income.
Deluxe — $59.99 USD per once: State is additional. It is a paid online option for returns that outgrow the free tier, though the listed price does not include state filing.
Premier — $99.99 USD per once: For people with income from investment assets; state is additional. Choose it when investment income rules out the free edition.
Self-Employed — $109.99 USD per once: State is additional. It is the listed online option for self-employed filers, whose income and expenses are excluded from free filing.
Basic Desktop — $44.99 USD per once: Includes five federal e-files, with state additional. This can suit a desktop user filing multiple federal returns, but the state cost remains separate.
Deluxe Desktop — $139.99 USD per once: Includes five federal e-files and one state return. It costs more than Basic Desktop but bundles a state return, which may matter to someone preparing several federal returns and one state return.

The listed starting price of $44.99 applies to desktop Basic; online filing can start at $0 for eligible returns. Compare the return’s forms and state needs against the plan inclusions before choosing.

Platforms

TaxAct supports web filing, downloadable tax-preparation software, and a mobile app. The web and mobile options suit filers who want to prepare or manage a return away from a desktop; downloadable software gives desktop users another format.

Who it's for

TaxAct is best suited to individual filers with investment, rental, or self-employment income who are prepared to pay for the plan that covers their return, and to businesses or tax professionals looking for relevant filing options. It is less compelling for someone expecting a free state return or assuming that every uncomplicated return qualifies for the free edition. Its breadth also does not make each plan interchangeable: the return’s income type and required state filing determine the fit.

Pros and cons

Pro: Supports investments, rental income, self-employment, and several business entity types, making it relevant beyond basic individual returns.
Pro: Offers online, downloadable, and mobile filing formats, giving users a choice of how to prepare and manage returns.
Pro: Unlimited Xpert Assist for consumer 1040 products provides live tax guidance while the user prepares the return.
Con: The free edition excludes investment, rental, business, and self-employed income, and eligibility is limited by income and deductions.
Con: State filing adds cost to most listed plans, so the advertised federal price may understate the total for a filer who needs a state return.

Alternatives

For individual filing, compare Personal Tax Software and Tax Preparation Software. Businesses can browse Small Business Tax Software; readers looking specifically for AI-focused products can see AI Tax Software.

H&R Block Online is another freemium web and mobile option, with a free plan for simple Form 1040 situations billed per state filed. TurboTax offers a free web edition for simple Form 1040 returns with $0 federal and state filing, but eligibility is limited to simple returns. Choose between them and TaxAct by checking which return types qualify and how state filing is priced.

MyTAXPrepOffice, OLTPro, UltimateTax, Instead, TaxOwl Pro Business, and TaxSlayer Pro are other options to compare.

Verdict

Choose TaxAct if you need support for income types beyond a basic wage return and want a choice of online, desktop, or mobile preparation, with live assistance on consumer 1040 products. Its strongest case is breadth paired with practical filing help; its main drawback is that free eligibility is narrow and state fees can erode the low entry price. If your return is simple, confirm that it qualifies for free filing; if it includes investment, rental, or self-employment income, compare the applicable plan and state cost before committing.

	TaxAct	TaxGPT
Free plan	Yes
Free trial		Yes
Paid from	$44.99/mo
Platforms	Web	Android, extension, iOS, macOS, Web, Windows
Free plan	Yes	No
Paid from	44.99 one-time
Self-employment support	Yes
Investment income	Yes
Rental income	Yes
State filing	paid_add_on
Mobile access	web_and_mobile
Audit support	Yes
Case law database		Yes
Current law updates		Yes
AI research tools		Yes
Citation export		Yes
Platform		web

TaxAct vs TaxGPT

TaxAct

TaxGPT