TaxAct

• Good for Simple Tax Needs
• Accuracy Guarantee
• Importing
• Alerts and Information
• Federal and State Prices

TaxAct is a top competitor in the tax preparing industry. They offer 100% accuracy guarantee as well as options to file taxes online, with a software CD, or on their iOS/Android App. TaxAct's website is secure with Norton Secured, TRUSTe Certified Privacy, Trustwave, and SSL that meet industry standards. This is only the tip of many great things TaxAct offers.

Good for Simple Tax Needs

Often described as an ideal tax software for those with very simple tax requirements, there are many good features associated with TaxAct. There are advanced packages, but for this review, we'll consider the most commonly used - Free Federal and Deluxe - by individuals and couples. Though simple, the software does have some advanced functions. For instance, it has a stock assistance tool that lets you enter all of your stock information for the year, and then it incorporates this information properly into the return. There are also many informational and learning resources for those who want to fully understand all aspects of their return.

Accuracy Guarantee

The tax company promises full accuracy. If TaxAct makes a mistake with the IRS, they agree to reimburse customers for penalties and interest. The only negative thing about this guarantee is that the mistake has to be reported within 30 days.

Importing

Like other tax prep software, TaxAct makes it much easier to handle your returns by importing data from a previous tax year. You can do this if you filed with the software in the previous year, but it is also designed to accept imported data from TurboTax and H&R Block as well.

Alerts and Information

This software uses "mini alerts" that indicate that some of your information is incorrect or in need of changes. These remain active until you deal with them but don't prevent you from moving forward. If customers do want to learn about deductions, TaxAct provides helpful information about the different kinds of deductibles, all on the website. While the information is not laid out upfront on the homepage, people can search through the help section to learn more.

Federal and State Prices

Not only does TaxAct offer free options for many filers, but their state prices fall in line with average costs whereas many companies tend to price high in this area. TaxAct offers the following federal tax products:

• Free - This plan is ideal for a simple tax return and is free.
• Plus - For itemized returns, homeowners and investors, this popular product is the way to go. It costs $15.
• Premium - Great for self-employed, freelancers and contractors, this package costs $30.

State Price

• Free -This plan is ideal for a simple tax return and is free.
• Plus - For itemized returns, homeowners and investors, this popular product is the way to go. It costs $25 per state return.
• Premium - Great for self-employed, freelancers and contractors, this package costs $25 per state return.

• Limited Discovery Tools
• No Automatic Deductions

There are some negatives associated with the use of TaxAct, but these are less a failure of the program and more related to the fact that it is designed especially for those with uncomplicated tax returns.

Limited Discovery Tools

Some have complained that it is a bit thin on deduction discovery tools. However, there are more advanced versions of the software available for those who know that they have complex tax return needs. If you are a filer without retirement income, depreciation, and multiple streams of income, you won't need these complex deduction and asset tools.

No Automatic Deductions

Deductions are not automatically suggested, but TaxAct provides customers with the ability to learn more about a variety of different kinds of deductions including:

• Career
• Charitable giving
• Child and dependent care credit and child tax credit
• College and students
• Mortgage tax breaks
• Standard deduction
• Tax refunds