![]() If you’re precise with numbers and good at record-keeping, you’re probably fine using tax preparation software. If you qualify for TurboTax’s completely free filing option, that might be the best of both worlds. On the other hand, TaxAct can be a great way to save some money if you’re a savvy e-filer who knows what you’re doing. While TurboTax is more expensive overall, the ease of its process will likely make it the best choice for taxpayers who have a lot of questions about their taxes and would benefit from the guidance. Service Level TaxAct TurboTax Basic $39.95 + $39.95 per state $99 + $54 per state Deluxe $86.90 + $54.95 per state $139 + $64 per state Premier $109.90 + $54.95 per state $189 + $64 per state Self-employed $134.90 + $54.95 per state $219 + $64 per stateīoth TaxAct and TurboTax are solid e-filing options. Here’s how much each service level costs when adding expert help: Here’s a cost breakdown of the different services that TaxAct and TurboTax offer: They also both offer maximum refund guarantees and have mobile apps. Then, both companies offer a product for self-employed filers, designed to assist freelancers, independent contractors and gig workers with their returns.īoth offer audit support in the event of an IRS audit. ![]() Above that option is the Premier plan, intended for filers with investments, such as stocks or real estate. The next step up is the Deluxe plan, intended for families with more complex deductions and credits. For budget-conscious filers, that might edge TurboTax out of the running.īoth companies have a very similar structure - a basic or free plan that allows filers with simple tax situations to file their federal return for $0 (TaxAct charges $39.95 for state returns). You’ll save $93.15 using TaxAct’s self-employed option with expert help rather than TurboTax’s equivalent product. Other than TurboTax’s completely free option, TaxAct is significantly less expensive across the board. The real downside of TurboTax is simply that it costs more. While TaxAct allows you to import prior returns or W-2s, it’s not set up to easily connect with QuickBooks (which is also owned by Intuit, like TurboTax) or import information from an Uber account.įree option. If you have a tax return with only W-2 income, no Schedule B interest or dividends, and take the standard deduction rather than itemizing, you may be able to file both your federal and state taxes for $0. TurboTax makes it easy to import not just tax information such as W-2s and prior returns, but data from QuickBooks and other services, like Uber. While this might seem like extra steps for those who have a solid understanding of their taxes, for many this can be extremely helpful and offer peace of mind that you’re making the right tax decision. If you’re not sure about something, TurboTax often has a simple questionnaire to help guide you to the right choice. TurboTax’s software takes a lot of guesswork out of the process of filing your taxes. TaxAct doesn’t provide many explanations or a guided experience, so it might not be as well-suited for those who have never filed their own taxes before.Ī guided experience. Less hand-holding throughout the e-filing process might be a positive for taxpayers who already know the basics, but others may need more guidance. While it offers less hand-holding and special features than some other e-filing software, that can be a plus for those who are looking for a straightforward process and already have a solid base of tax knowledge. All prices listed here are as of April 6, 2023.) (A note on pricing: Many tax preparers raise their prices as Tax Day draws nearer, so the prices listed here might not be current. ![]() TaxAct does not offer a fully free option for filing simple returns, but all of its other products are less expensive. The TaxAct website claims you’ll save up to 20% on your federal tax preparation compared to TurboTax. Let’s take a deeper look at some of the upsides and downsides of TaxAct. TaxAct might not have the name recognition as TurboTax and other services, but it offers a similar process and can be less expensive for many filers. If you want expert help with your tax strategy, consider speaking with financial advisor. ![]() But which is right for you? Here’s how they compare to each other and what to consider when using either platform. You’ve probably heard of TaxAct and TurboTax, two of the most popular tax-filing services on the market. As you prepare for Tax Day, you might be overwhelmed by the options available for filing your taxes online.
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