TaxAct
TaxAct provides DIY tax preparation software that helps you file federal and state income tax returns with accuracy guarantees and maximum refund protections for individuals and businesses.
TurboTax
TurboTax is a comprehensive tax preparation software that guides you through federal and state income tax returns with step-by-step questions to maximize your deductions and ensure filing accuracy.
Quick Comparison
| Feature | TaxAct | TurboTax |
|---|---|---|
| Website | taxact.com | turbotax.intuit.com |
| Pricing Model | Freemium | Freemium |
| Starting Price | Free | Free |
| FREE Trial | ✘ No free trial | ✘ No free trial |
| Free Plan | ✓ Has free plan | ✓ Has free plan |
| Product Demo | ✘ No product demo | ✘ No product demo |
| Deployment | ||
| Integrations | ||
| Target Users | ||
| Target Industries | ||
| Customer Count | 0 | 0 |
| Founded Year | 1998 | 1984 |
| Headquarters | Cedar Rapids, USA | Mountain View, USA |
Overview
TaxAct
TaxAct is a digital tax preparation solution designed to help you navigate the complexities of federal and state tax filing. Whether you are a simple W-2 filer, a homeowner, or a self-employed professional, you can use the step-by-step guidance to identify deductions and credits you might otherwise miss. The platform focuses on providing a clear path from data entry to e-filing while ensuring your data remains secure throughout the process.
You can import previous year data from competitors like TurboTax or H&R Block to save time on manual entry. The software scales its complexity based on your specific financial situation, offering specialized modules for investment reporting, rental property income, and small business expenses. With a focus on affordability, it provides a functional alternative to higher-priced competitors without sacrificing the essential forms and schedules you need for a complete return.
TurboTax
TurboTax simplifies the complex world of tax filing by transforming daunting forms into a series of simple, conversational questions. You don't need to be a tax expert to get your maximum refund; the software handles the calculations and searches for over 350 deductions and credits based on your unique life situation. Whether you are a simple W-2 filer, a homeowner, or a small business owner, you can navigate your taxes with confidence using their intuitive interface.
The platform provides various levels of support, from DIY filing to full-service options where a tax professional does everything for you. You can import your financial data directly from employers and financial institutions, significantly reducing manual entry and potential errors. It is designed for individuals, freelancers, and small business owners who want a guaranteed accurate return without the high cost of a traditional accounting firm.
Overview
TaxAct Features
- Step-by-Step Guidance Answer simple questions about your life and finances while the software handles the complex math and form placement for you.
- Data Import Upload your W-2 or import tax data from previous years and other providers to jumpstart your return and reduce manual errors.
- Maximum Refund Guarantee File with confidence knowing the software calculates the highest possible refund or lowest tax liability based on your provided information.
- Accuracy Guarantee Protect yourself with a guarantee that covers any penalties or interest resulting from software calculation errors during your filing process.
- Deduction Sneak Peek Track your refund status in real-time as you enter information so you can see exactly how each entry affects your bottom line.
- ProHelp Support Connect with tax professionals for one-on-one screen sharing and advice to resolve specific questions about your unique tax situation.
TurboTax Features
- Step-by-Step Guidance. Answer simple questions about your life and let the software automatically fill out the right tax forms for you.
- Deduction Finder. Scan for over 350 tax deductions and credits to ensure you keep more of the money you earned.
- W-2 Import. Snap a photo of your W-2 or import it digitally to save time and eliminate manual data entry errors.
- Audit Support Guarantee. Receive free audit guidance from a trained professional to help you understand what to expect if the IRS contacts you.
- Expert Review. Connect with live tax experts who can review your return line-by-line before you file for total peace of mind.
- Maximum Refund Guarantee. Get the largest refund possible or your money back if another tax preparation method finds a bigger one.
- ExplainWhy Technology. View instant explanations for why your refund amount changed so you understand your financial picture clearly.
- Mobile Filing. Start, stop, and finish your taxes across your phone, tablet, or computer with seamless data syncing.
Pricing Comparison
TaxAct Pricing
- W-2 income filing
- Unemployment income
- Retirement income
- Child tax credits
- Stimulus credits
- Prior year data import
- Everything in Free, plus:
- Itemized deductions
- Mortgage interest reporting
- Student loan interest
- HSA contributions
- Real estate taxes
TurboTax Pricing
- For simple tax returns only
- W-2 income reporting
- IRS standard deduction
- Earned Income Tax Credit
- Child Tax Credits
- Free federal and state filing
- Everything in Free, plus:
- Itemized deductions
- Mortgage interest deductions
- Property tax reporting
- Charitable donation tracking
- Search 350+ tax credits
Pros & Cons
TaxAct
Pros
- More affordable than major name-brand competitors
- Intuitive interface for simple tax situations
- Easy import of data from other providers
- Clear visibility of refund status throughout
Cons
- State filing fees are charged separately
- Customer support response times vary during peak
- Upselling prompts can be frequent during filing
TurboTax
Pros
- Extremely user-friendly interface for non-experts
- Seamless data importing from financial institutions
- Clear explanations of complex tax concepts
- Reliable mobile app for filing on the go
- Excellent live support options for tricky questions
Cons
- Pricing can feel high for complex returns
- Frequent prompts to upgrade to paid tiers
- State filing often requires an additional fee
- Limited functionality in the free version