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Tax Act Review

Monday, February 10th

2025 Tax Preparation Service Reviews

Tax Act Review 1 Star Rating

Tax Act

1 Star Rating
  • Pricing from $0 to $69.99
  • Estimates your returns
  • State and Federal taxes
  • E-filing process
  • Professional help as an add-on
  • Guarantee for accurate returns
  • "A+” rating from the BBB

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.

Best Tax Software

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.

Best Tax Software

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.

Where is the Best Site to Do Your Tax Preparation?

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.

The Best Tax Preparation Services Compare Tax Preparation Services Compare Tax Preparation Service Reviews What are the best Tax Preparation Services Best Tax Preparation Service Reviews

Tax Preparation Service FAQ

Online Tax preparation services walk you through a series of questions, much like you'd get with a human tax preparer: are you married, do you have a mortgage, and so on. The program fills in your tax forms based on the answers you provide, and at the end your return is ready for filing. Tax preparation services allow you to file your returns electronically, but you always have the option to file them by mail.
That's up to you! Almost every tax preparation platform today makes it possible to do your entire return online, no downloads or CD-ROMs necessary. But, if you prefer to do it the more old-school way, you can still find tax preparation services that download to your computer and let you work offline.
That depends on several factors. The more complicated your financial situation, the more likely it is that you'll need a tax preparation service that goes beyond the basics. Most tax preparation services will walk you through the options and recommend the right product for your needs.
Yes, most of the time. Many services will take the information you entered during your federal return and carry it over into your applicable state return. Keep in mind that you may have to pay extra for your state's online tax service. You can opt to file your federal return electronically (often included at no extra charge) and file your state return by mail if you wish.
For the most basic tax returns (those that only have W2 income, no investments, no mortgage interest to deduct), some tax preparation services are completely free. Otherwise, you can expect costs ranging from $19 - $120, with the most expensive packages for those who have self-employment/business income and expenses to report.
You'll often find answers built right into the tax preparation service. Look for a button to click on the page where you're having trouble, for explanations and additional info. If you'd like to get help from a tax professional, you might be able to connect with someone by phone or online (though that may incur extra charges). A few online tax preparation services have in-person options if you get stuck and want a tax preparer to take over or just want to go over your return face-to-face.
The good news is that your tax preparation service will likely have a robust detection method for uncovering any errors you may have made. Of course, it can't tell if you entered the wrong numbers for your income, but if it spots anything obviously wrong you'll get a notification and a prompt to review that part of your return. If you file your taxes and later realize there was an error, you can file an amended return.
Getting an audit notification can be scary! Depending on which tax preparation service you use, you might have audit support and guidance built into your package. Some services also offer full audit representation for an additional fee.
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Continued from above...

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:

  • Cost. The cost differs depending on the service and what you need in your final tax preparation. If you don't need to worry about itemized deductions or you're just submitting a 1040 form, you might get a great deal on tax preparation (or even free tax filing). However, for more comprehensive filings or different types of tax forms, you may want to pay a little extra for your tax preparation service, with or without assistance from a tax pro.
  • One-stop shop. The best tax preparation services offer a one-stop shop for your finances. Make sure that you can get everything handled by the same platform. For example, if you need specific forms, you'll want to make sure your chosen service offers those. Plus, some states require state and federal income taxes to be filed, so you'll want to be sure your chosen service offers filing options for both if necessary.
  • Reputation. Always remember to check out tax prep services with the IRS as well as online review sites. Third-party reviews from taxpayers like you can help you feel more confident in your choice. This way you can be sure you're getting the best deal and the highest-quality service.

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!

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