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Monday, February 10th
TaxAct is a tax preparation service that's been around since 1998, and claims to have helped more than 90 million tax filers to date. On top of being able to file taxes for business and individual needs, you also get access to TaxAct's on-staff CPAs who will review your work before you file. Their approach is 100% DIY, but TaxAct's in-house experts promise to maximize your credits and deductions.
DIY filing unless you pay extra
TaxAct's free tax prep service covers situations that include W-2 filing, unemployment, retirement, child tax credits, dependents, filing for current students, and student loan interest. However, if you need to report things like investment income, home/real estate-related taxes, royalties, trusts, foreign accounts, business income, or freelance, contractor, or self-employed income, you will need to select one of TaxAct's paid tax filing options. You don't have to do everything alone, though, because TaxAct offers its Xpert Assist service (at an added cost) which gives you unlimited live tax advice from their on-staff experts.
Quick sign-up with text authentication
No matter how much help you require or what forms you need to file, you can get started at TaxAct for free. You just need to make an account with TaxAct which needs a quick text authentication to jump right in. Then, TaxAct will go through the basic questions about your financial situation and your taxpayer details. From there, it will take you through the steps to get your federal refund estimate, and the total cost for your filing will be shown based on the forms you need to submit to the IRS. Simple filing is free of charge.
Pricing from $0 to $69.99
Like most places, TaxAct's prices for filing are listed for federal taxes. There will be additional fees for state taxes, which are $39.99 per state. If you have a simple filing, there is no cost to file your taxes at TaxAct. The next tier up is the Deluxe package for $29.99, which includes homeowner deductions, childcare expenses, and health savings. The Premier option is $49.99 for filings that include investment, home sales, and rental property income. Finally, the highest tier is the Self-Employed option for $69.99 which includes filings for freelance workers, gig income, or those with a sole proprietorship or LLC. If you want to get professional advice, you'll have to pay $60 extra for the Xpert Assist feature.
Best refund and zero error guarantees
There are a couple of helpful guarantees at TaxAct, including the Max Refund Guarantee which promises that you won't get a better refund from any other tax preparation service. You'll also get access to a $100,000 Accuracy Guarantee which promises that your tax filing will be 100% correct from errors on TaxAct's end which is backed by a $100,000 potential reimbursement.
Customers don't trust TaxAct
TaxAct holds an "A+” rating from the Better Business Bureau, but beyond that, the news is fairly concerning. Across multiple third-party review sites, including Trustpilot and Sitejabber, the average rating for TaxAct is 1.3 stars out of 5. Customers complain about high costs (higher than in previous years) at TaxAct. Further, previous taxpayers who used the service noted that the guarantee isn't worth much. When the program made errors, TaxAct did not offer any help or resolution. One review noted that while their filing should have been under the free option, a paywall popped up requiring the customer to pay for the top tier of TaxAct's filing packages. Overall, taxpayers feel this service is untrustworthy, expensive, and doesn't stand behind its promises.
Not worth the hassle
TaxAct comes in as our least favorite tax preparation service among the options on our list. With complaints across the board for high costs, unreliable software, and issues with getting the help promised in its guarantees, there isn't a lot to recommend for this service. It doesn't offer any standout features that you can't find with a rival tax preparation service, and their low customer satisfaction across the board is deeply concerning. Even if you want a free filing option, there are plenty of other tax preparation services to check out instead. Just look higher on our list.
Let's face it: tax season is nobody's favorite time of the year. Whether you're a W-2 employee or an independent contractor, taxes are a source of stress every spring. But, it doesn't have to be that way. Tax preparation services are there to ease the process (and are particularly helpful if you own your own business).
So, what do tax preparation services actually do? Most services offer planning to understand your tax situation and filing. You may receive preparation of your actual return, or advice on different aspects of your taxes like individual tax returns, estate tax planning, personal financial planning, deductions, property tax assessments, tax credit reviews, and more. The tax advisor (individual or website) can make taxes make sense and help you avoid many of the pitfalls.
A few years ago, the IRS (Internal Revenue Service) estimated that there were around 1.2 million paid tax preparers available in the US. Tax preparation can be completed by a range of licensed agents, accountants, or businesses who can take the weight of tax season off your shoulders.
The most important thing about finding a tax preparation service is to make sure you work with one you trust. The three best professional credentials to look for include Enrolled Agents (or entities), who are licensed directly by the IRS and must pass an examination to demonstrate their understanding of federal tax planning, individual and business taxes, and representing you properly; Certified Public Accountants (CPAs) who have studied finance at a university and passed charter exams and requirements for accounting; and, Attorneys who are licensed by state courts and have passed a bar exam in financial law.
Now, keep in mind, there will be fees for using most tax preparation services, but these will be minimal compared to the high fines and charges from the IRS if you make a mistake on your return. For even small errors on your taxes, you could be looking at thousands of dollars in fines. A one-time fee for a tax preparation service is no sweat in comparison. Most tax preparation and filing costs between $30 to $500 (though some really comprehensive services cost more), so you'll want to make sure you know what you need before you start.
If you're ready to simplify tax season, but don't know which service to choose, we've put together some factors that can help you find the best tax preparation service for your financial situation:
To help you find the best service to get your return filed this tax season, Top Consumer Reviews has researched and ranked the top tax preparation services out there today. Take the stress out of tax season and hand the nitty-gritty details over to an expert (or enjoy a guided DIY approach that is as simple as a step-by-step guide). After that, you just need to sit back, relax, and wait for those lovely tax returns!
Select any 2 Tax Preparation Services to compare them head to head