Finance

TaxAct Review - The Best Tax Filing Tool

Explore all the features of TaxAct and take a deeper look into its advantages, limitations, and capabilities that make it a leading tax filing app out there.

Updated on January 05, 2024
TaxAct Review - The Best Tax Filing Tool

We all know what a pain finance and tax filing is. This dreaded task is an unavoidable necessity that every adult has to suffer through. However, while finances and tax are a tough cookie to crack, there are some tools you can leverage to get one step ahead, thanks to innovations in software and mobile app development.

TaxAct

As a result, solutions like TaxAct software have gained a lot of pace. Financial apps and solutions have allowed the simplification of these complex processes so that users can enjoy a hassle-free and efficient mode of managing their finances and be on top of their taxes. 

Today, we will deliver a brief report on the TaxAct app, discussing in detail how this solution works. This TaxAct review will include its unique features that set the application apart and explain how the solution can help in tax planning and online return filing. 

What is TaxAct?

TaxAct online tax preparation service is designed for various users, including homeowners, investors, and self-employed individuals. Offering multiple packages, TaxAct caters to different tax needs, with specific solutions for complex situations like rental properties or foreign accounts. It guarantees maximum refunds and accuracy, backed by a $100k promise. 

The platform is user-friendly, ensuring data privacy and security. TaxAct's standout feature is its Xpert Assist, which provides live expert advice for an additional fee. With a history of over 94 million e-filed returns, TaxAct is a trusted and cost-effective solution for tax filing. Additionally, TaxAct provides specialized solutions for complex tax scenarios, such as rental properties or foreign accounts, and offers distinct packages for business tax filing as backed by several taxAct reviews. This includes options for partnerships, corporations, and even specialized solutions for estates and trusts.

This app incorporates features like W-2 upload, refund status tracking, and live chat support and allows a seamless transition between app and desktop usage, ensuring a flexible and uninterrupted tax preparation experience while providing minimal taxAct fees.

Features of TaxAct

Best Accounting Apps like TaxAct come with a lot of features that help users streamline their financials. Let's look at some features that distinguish the TaxAct. 

For Individual Taxpayers

1) Tax Filing Options

TaxAct caters to diverse tax filing needs, including federal and state do-it-yourself (DIY) tax preparation. It's equipped to handle various tax situations, such as investment income, real estate transactions, and income from freelance or contract work.

Tax Filing Options

2) Expert Assistance

Through the Xpert Assist service, TaxAct provides unlimited access to live tax advice and assistance from tax experts. This service is particularly beneficial for consumers filing 1040 tax forms, offering professional guidance to navigate complex tax scenarios.

Security and Guarantees: Security is a top priority for TaxAct, which safeguards personal and financial information using advanced encryption technology. The platform stands behind its services with two significant guarantees: the Maximum Refund Guarantee and the $100k Accuracy Guarantee. These guarantees ensure accurate calculations and aim to maximize tax refunds for users.

3) Tax Planning Tools

TaxAct offers various tools to assist users in their tax preparation process. These include features for importing tax data, calculating deductions and credits, and strategies to maximize tax refunds. The platform is versatile, supporting various tax situations like business and farm income, itemized deductions, and more, making it a robust tool for tax planning and filing.

For Professional Taxpayers

1) Comprehensive Tax Software Suite 

TaxAct's professional suite offers specialized editions to cater to a wide range of tax filing requirements. This includes editions for 1040 (individuals), 1065 (partnerships), 1120 and 1120-S (corporations), and 990 (non-profits). Each edition is meticulously designed to address the intricacies and complexities associated with different tax scenarios. 

The software's versatility ensures that professional tax preparers can confidently handle various client needs, from individual tax filings to complex corporate or non-profit organization taxes. This comprehensive approach simplifies the tax preparation process, ensuring that professionals can manage a diverse clientele with ease.

2) Advanced Tools for Efficiency

The professional editions of TaxAct are equipped with advanced tools that significantly enhance efficiency in the tax preparation process. These tools include fast data entry systems, comprehensive error-checking mechanisms, and streamlined e-filing capabilities. The quick data entry feature minimizes the time spent on inputting client information, while the error-checking tool helps in identifying and rectifying potential mistakes, thereby reducing the likelihood of filing errors. 

The e-filing functionality facilitates a smooth, electronic submission process, ensuring timely and efficient filing. Collectively, these tools help tax professionals manage their workload more effectively, leading to increased productivity and client satisfaction.

3) Client Management Features 

TaxAct Professional is designed with client management features that are essential for effective practice management. These features enable tax professionals to organize and track client returns efficiently. The system allows for the easy storage and retrieval of client data, simplifying the management of client information. 

This streamlined approach to client management ensures that tax preparers can keep track of each client's progress, deadlines, and specific requirements. By having all client-related data and progress updates in one place, tax professionals can provide timely and accurate services, thereby enhancing client relationships and ensuring a high level of personalization and satisfaction. 

4) Customizable Options

Professionals using TaxAct can personalize their service through customizable reports and client communications. This flexibility allows tax preparers to tailor their interactions to the specific needs of individual clients. From reports to client communications, this customization feature ensures a personalized touch in every aspect of the tax preparation and client interaction process.

5) Continual Updates and Support

TaxAct remains at the forefront of tax software by providing continual updates aligned with the latest tax laws. This commitment to staying current ensures that tax professionals using the software can maintain compliance and stay informed about any changes in regulations. Additionally, TaxAct offers robust support, addressing any technical issues promptly and effectively, ensuring a seamless experience for tax preparers.

Additional Features

1) Tax Calculators and Tools

TaxAct enriches its offerings with a range of calculators and tools catering to diverse tax scenarios. The Tax Calculator, Self-Employment Calculator, Tax Bracket Calculator, and Tax Extensions tool provide users with invaluable assistance in navigating complex tax calculations. These tools empower users to make informed financial decisions and optimize their tax positions, adding a layer of versatility to the TaxAct platform.

 TaxAct platform

2) Download Products

TaxAct ensures users stay current by providing downloadable software updates for different editions. This feature allows users to effortlessly access and install the latest versions, guaranteeing that they have the most up-to-date tools and features at their disposal. This commitment to regular updates reflects TaxAct's dedication to providing a cutting-edge and reliable tax preparation solution.

Download Products

3) Customer Support

TaxAct places a strong emphasis on customer support, offering a robust assistance system. Users can benefit from help with e-filing status, IRS refund tracking, and other queries, ensuring a smooth experience. This customer-centric approach aligns with TaxAct's commitment to user satisfaction, providing the necessary support to address concerns promptly and comprehensively. The availability of assistance on e-filing and refund tracking adds an extra layer of reliability to the TaxAct user experience.

4) Security and Data Protection

TaxAct prioritizes the security and protection of user data through advanced measures. These security protocols are in place to safeguard sensitive information, ensuring confidentiality and compliance with stringent data protection regulations. By employing cutting-edge security technologies, TaxAct establishes a secure environment, instilling confidence in users that their financial data is handled with the utmost care and diligence.

TaxAct Pros and Cons

Pros Cons
Offers a range of packages suitable for different tax situations, including complex scenarios like investments, rental property income, and self-employment. While TaxAct offers guidance, it does not provide personal tax advice like a CPA.
Known for its easy-to-navigate platform, it makes tax filing accessible for various user levels. Some features, like live expert advice, come at an additional cost.
Provides free unlimited access to tax experts, allowing users to file confidently with professional guidance. Some business tax scenarios might be too complex for the software, requiring professional assistance.
Includes tools like Deduction Maximizer and Donation Assistant, helping users maximize their deductions. Pricing for certain plans, especially for complex tax situations, can be higher than basic services.
Users can track their refund amount in real-time as they progress through their return. State return filing usually comes with an additional cost.
Emphasizes data protection with strong security measures like SSL encryption and complex passwords. Some users may find certain aspects of the interface less intuitive, depending on their tech proficiency.
Provides extensive customer support, including phone, live chat, and a helpful resource center.  

TaxAct Cost and Pricing

TaxAct Cost and Pricing

The TaxAct income tax calculator comes with a range of paid models for their tax tools that cater to different client's needs and requirements. Let’s look into these prices users can purchase to enjoy premium online tax filing services.  

TaxAct Free Edition

TaxAct Free edition includes basic tax filing features and support for the Earned Income Tax Credit. Since it is a free model, it certainly lacks some features that a user might want for added ease. Regardless, this online tax filing option is ideal for straightforward tax situations. Best suited for individuals with W-2 income, unemployment income, or retirement income.

Cost: The Free Edition is designed for simple tax returns and is generally free for federal filing. However, state filing may incur a charge.

TaxAct Deluxe Edition

While the free version offers a plethora of basic functions, the deluxe version is perfect for homeowners and people with deductions, credits, and adjustments. Deluxe Edition extends beyond the Free Edition by covering itemized deductions, adjustments to income, and various credits like child and dependent care expenses. It also includes additional support for deductible student loan interest, mortgage interest, real estate taxes, and Health Savings Account (HSA) contributions.

Cost: $24.95 for federal filing plus state filing costs.

TaxAct Premier Edition

The premier edition kicks it up a notch by presenting more personalization and customized features to its users. The taxAct online tax software is designed for individuals with investment income and those earning from rental properties. The Premier Edition is essential for reporting capital gains and losses (Schedule D), rental property income and deductions (Schedule E), royalty and Schedule K-1 income, and foreign bank and financial accounts.

Cost: $34.95 for federal filing and $44.95 per state.

TaxAct Self-Employed Edition

Made for individual use, the self-employed model is Ideal for freelancers, contractors, and small business owners. This edition offers comprehensive support for personal and business income and deductions, including business expense deductions, depreciation, and estimated taxes. The Deduction Maximizer tool helps identify niche-specific deductions, enhancing tax savings for self-employed individuals.

Cost: $64.95 for federal filing and $54.95 per state.

TaxAct also offers downloadable versions of its software at different prices. For instance, the Deluxe Download costs $96.90, the Premier Download is priced at $101.90, and the Self Employed Download costs $124.90. Each additional state return costs $49.95 in the download version.

In addition to these individual options, TaxAct provides bundles for home and business tax filing at $200, including one federal and state e-file for business taxes and five federal and one state e-file for personal taxes. Business-only filing costs $109.95 for the federal return and $49.95 per state.

What do MAD Experts Say about TaxAct?

Our expert reviewers at MobileAppDaily have recognized TaxAct as a reliable and efficient option for tax preparation. Our comprehensive review underscores that this tax software is a valuable tool for individuals and businesses seeking to streamline their tax filing processes.

Experts at MobileAppDaily highlight that TaxAct excels in making tax filing and financial management more accessible and user-friendly. With its intuitive interface and step-by-step guidance, the software ensures that users can navigate the complexities of tax preparation with ease. It provides a robust platform for users to manage their tax affairs efficiently, assisting them in making informed decisions about their financial health.

During our TaxAct reviews, our experts also found the solution to be straightforward, easy to use, and a delight to set up. It guarantees that users, regardless of their tax knowledge or experience level, can effortlessly manage their tax returns and compliance requirements, democratizing tax filing for everyone.

After the TaxAct reviews, MobileAppDaily experts also commend TaxAct's versatility in addressing a variety of tax needs. Whether for simple individual returns or more complex scenarios involving investments, self-employment, or business operations, TaxAct offers a comprehensive solution. It caters to a wide range of users, from novices to seasoned tax filers, providing the tools and insights necessary to navigate tax obligations confidently.

Additionally, TaxAct instills confidence in users to take charge of their fiscal responsibilities. This tax software has carved a niche for itself among its users for its commitment to accuracy, transparency, and responsive customer support. It offers a consistent and streamlined experience, ensuring that users can confidently manage their taxes without hassle.

MobileAppDaily's experts recognize TaxAct as a standout choice as tax software. Its dedication to user-friendly design, comprehensive features, and reliable support makes it a favored tool among various users, simplifying tax filing and empowering them in their financial journeys.

MAD Rating for TaxAct Online Tax Calculator:

Features: 4.7
Pricing: 4.3
Security: 4.0
User Interface (UI): 4.1

How to use TaxAct Software?

Step 1 - Choose the Right Edition The primary step is to select the TaxAct edition that best fits your tax situation. TaxAct offers various versions, each tailored to different types of tax filers, from those with simple tax situations to those with more complex needs like investments or self-employment income.
Step 2 - Create an Account If you're a new user, you'll need to create an account. This involves providing some basic information and setting up a username and password. If you're a returning user, simply login to your existing account.
Step 3 - Gather Your Tax Documents Before starting your tax return, gather all necessary documents, such as W-2s, 1099s, investment income statements, and any other relevant tax-related information.
Step 4 - Begin Your Tax Return Once logged in, start your tax return. TaxAct guides you through a series of questions about your income, deductions, credits, and any other relevant tax information. It’s structured in an interview format to simplify the process.
Step 5 - Utilize TaxAct’s Tools Use TaxAct's built-in tools, like the Deduction Maximizer or Donation Assistant, to ensure you’re getting the maximum deductions and credits available to you.
Step 6 - Review Your Return After you’ve entered all your information, review your return for accuracy. TaxAct also performs checks for errors or omissions to help avoid potential issues.
Step 7 - Track Your Refund After filing, use TaxAct’s platform to track the status of your federal and state returns and your refund status.
Step 8 - Access Support If Needed If you encounter any questions or issues, TaxAct offers customer support through phone, email, or chat. For more complex tax questions, you can access their Xpert Assist for professional advice.

Final Thoughts

TaxAct distinguishes itself with its user-centric design, comprehensive features, and excellent customer support, making it a highly viable option for a range of tax filing requirements. The intuitive interface of TaxAct simplifies the tax filing process, making it accessible to users regardless of their experience with tax preparation. 

Additionally, tools like the Deduction Maximizer and Donation Assistant aid in identifying potential deductions, ensuring users maximize their returns. The real-time refund tracking feature adds transparency, allowing users to monitor their refund status as they progress through their tax filing.

TaxAct's viability is further strengthened by its competitive pricing, which makes it an affordable option compared to other tax software in the market. Furthermore, TaxAct's robust customer support system, including phone, live chat, and a comprehensive Help Center, provides users with the necessary assistance whenever needed.

TaxAct's blend of functionality, affordability, and support makes it a commendable choice for a range of tax filing requirements. If you also own or are associated with an app like TaxAct, you can get your app reviewed by Mobileappdaily and shoot your leads to the skies. 

MobileAppDaily Team
Written By MobileAppDaily Team

MobileAppDaily host a team of experienced technical writers, industry wizards, and app experts who have an exact knack of content that caters to the needs of the mobile app targeted audience. We strive to bring you the best of tech!

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