Every year, millions of Americans use tax filing software to electronically file their tax returns, and many question which is best between TaxAct vs. TurboTax.
TaxAct and TurboTax are two of the most popular apps available on the market to help you meet those goals. They regularly receive top nods from finance and software review sites, although there are core differences in pricing and user experience.
This review article will take a closer look at both. We’ll highlight the similarities and differences between these two e-filing apps to help you determine which one is the best fit for your needs.
About TaxAct
Founded in 1998, TaxAct was the first tax software provider to offer free tax filings. It continues to offer free federal returns to this day, for basic returns with no itemized deductions and no non-standard income. About 44% of users qualify for the free edition.
For more complex returns, pricing starts at just $29.99, which is about the cheapest tax-filing software you’ll find anywhere on the market. There is a fee, however, for any state tax return — $39.99 per state for all plan levels.
According to users and other software reviews, TaxAct does not have the slickest user interface, and there is an additional fee for professional review of your taxes. Still, year over year TaxAct has made software improvements to enhance overall user experience, including the introduction of Xpert Assist for on-demand tax help and Xpert Full Service for those who want a pro to handle everything.
About TurboTax
The tax software company, TurboTax, was founded in 1984 and acquired nine (9) years later by Intuit Group Companies. Intuit owns and operates many well-known business software and finance products, including QuickBooks, MailChimp, and Credit Karma.
TurboTax is a leader in tax return software thanks to its user-friendly flow with step-by-step guidance. It offers premium (paid) and free filing options.
TurboTax Free Edition ($0 Federal + $0 State + $0 To File) is available for those filing simple Form 1040 returns only (no schedules except as needed to claim the Earned Income Tax Credit, Child Tax Credit, student loan interest, and Schedule 1-A). ~37% of taxpayers qualify.
The software is designed to meet the needs of everyday taxpayers and small and medium-sized businesses, including contractors, freelancers, and gig workers. TurboTax’s paid plans start at $39 for the DIY tier and go up from there depending on complexity and level of assistance needed.
TaxAct vs. TurboTax: Pricing
In terms of pricing, both software programs offer free federal tax returns, but TaxAct has cheaper pricing for premium plans to support more complex tax filings.
- TaxAct: Has four (4) different plans for tax filers, including an option for those who are self-employed. The free federal filing costs $0, but state returns are $39.99 per state for all plan levels. Paid federal plans range from $29.99 (Deluxe) to $49.99 (Premier) to $69.99 (Self-Employed). There are no free state filings with TaxAct.
- TurboTax: Offers three (3) different levels of service based on how much assistance you need: Do It Yourself, Live Assisted, and Full Service. The Do It Yourself tier ranges from $0 to $89 for federal returns depending on complexity. State returns are free with the Free Edition or cost $59-$69 per state for paid plans. Live Assisted ranges from $89 to $219 federal, and Full Service starts at $129 and varies based on complexity.
While TaxAct has cheaper price points for the DIY experience, it may not be the better deal depending on your tax filing needs and how much assistance you may require. TurboTax offers more robust support options, including live assistance and full-service tax preparation, which aren’t available at TaxAct’s base pricing levels.
TaxAct vs. TurboTax: Features
Here’s a rundown of the service features you’ll find with these tax filing apps.
TaxAct Features
- Audit Support: Assistance is offered through an FAQ page covering audits. Audit Defense through ProtectionPlus (a third-party company) offers hands-on audit support for $49.99. ProtectionPlus covers your return for three years, guides you through the process, and handles all IRS and state tax-related correspondence.
- Tax Professional Support: Get direct guidance from a tax expert through TaxAct Xpert Assist for $45. Xpert Full Service (starting at $99 including one state) provides full-service tax preparation where a pro handles everything for you.
- Refund Options: Direct deposit, paper check in the mail, or an American Express Serve card, which is a flexible, prepaid debit card. You can also apply your refund to next year’s taxes or purchase U.S. savings bonds.
- Affordability: Pricing starts at just $29.99 for a federal tax return with common itemized deductions, including child care credit, dependents and dependent care, mortgage interest, and student loan interest. This makes it one of the most budget-friendly options for paid filing.
- Accuracy Guarantee: TaxAct offers a $100,000 accuracy guarantee. If there’s an error in calculations that results in penalties or interest, TaxAct will cover the costs up to $100,000.
- Overall User Experience: Easy-to-use overall but a couple of parts of the process are less than intuitive compared to competitors. TaxAct has solid user ratings but doesn’t match the polish of TurboTax. TaxAct has a 4.4-star rating on iTunes and a 3.0-star rating on Google Play.
TurboTax Features
- Audit Support: Comes with all TurboTax returns, except for Business CD/Download returns. Receive a consultation with a qualified tax professional to prepare for any audit. TurboTax Free Edition customers are entitled to payment of $30 if audit support cannot be provided.
- Audit Defense: A paid add-on service you can purchase when filing your return. Can be purchased as a standalone service with desktop-only TurboTax software tax submissions. This gives you full representation by a licensed tax professional in the event of an audit, including managing communications with the IRS.
- Refund Options: Direct deposit, check in the mail, government savings bonds, or use your tax refund to pay ahead for next year’s anticipated taxes. Refund Advance option offered to receive your tax return within minutes of the IRS accepting your return (up to $4,000 available).
- Advanced Options: With Full Service tax filing, a tax expert (CPA, EA, or other similar designation) will complete your tax return for you. You will meet with your rep by phone or video call, and there is the option to work with the same tax pro for future year returns. Starting at $129, pricing varies based on complexity.
- Live Assisted Support: With the Live Assisted tier ($89-$219), you get unlimited access to tax experts between 5 a.m. and 9 p.m. Pacific time, seven days a week, plus an expert review before you file.
- Affordability: Free filing option is offered for basic, DIY returns (~37% of filers qualify). For more complex returns, DIY costs range from $39 to $89, which is competitive for the level of guidance provided. With tax professional assistance, costs range from $89 to $219+ depending on the level of support needed.
- Accuracy Guarantee: TurboTax offers all filers a 100% accuracy pledge for maximum refund guarantees, tax liability calculations, and audit support. See terms of service for additional information.
- Overall User Experience: TurboTax offers an outstanding user experience with user-friendly and intuitive software and excellent reviews in the app store. TurboTax has a 4.8-star rating on iTunes and a 4.6-star rating on the Google Play Store.
TaxAct vs. TurboTax: Customer Support
Both tax filing programs offer customers a range of ways to contact support for software, refund, audit, or other common questions.
TurboTax Customer Support
TurboTax is built around offering consumers the exact level of support they need to understand and complete their taxes. For those with Live Assisted or Full Service plans, this means personalized assistance and a direct connection to a tax pro. But for all customers, there’s a range of ways to reach customer service.
- Email: Contact support at ttappfeedback@intuit.com or security@intuit.com.
- Phone: Dial parent company Intuit’s customer support line at 1-800-4INTUIT (1-800-446-8848).
- Video-Conferencing: Live Assisted and Full Service filers receive TurboTax live video support. It’s a one-way video call where only the tax professional is visible; your camera is not on.
- Chat: Live chat support is available during tax filing season.
- TurboTax Support: Resource hub with how-to articles and videos with step-by-step tips, general tax information, and details about filing for different scenarios like homeowners, rental property income, freelancers, self-employed filers, and more.
- Community Forum: Intuit has helpful member forums for TurboTax customers. It’s a great place to give and find answers to filer questions.
TaxAct Customer Support
- Email: No specific dedicated customer support email is advertised; however, consumers can email marketing@taxact.com or abuse@taxact.com.
- Phone: Call (319) 373-3600. Phone lines are open Monday to Friday from 8 a.m. to 5 p.m. CST. Unlimited phone support is included with all paid plans.
- Video-Conferencing: Professional support offered over video calls and screen-sharing is available with Xpert Assist ($45) and Xpert Full Service (starting at $99) plans.
- Chat: Live chat support is offered on the TaxAct website, although chat agent hours are not published, and availability can be limited.
- Professional or Audit Support: Customers who have purchased ProtectionPlus for audit defense (additional $49.99 fee) can contact the main phone line at (319) 373-3600.
- Help Topics: TaxAct has a large library of resources, including how-to guides, common FAQs, and other helpful articles.
TaxAct vs. TurboTax: Pros and Cons
TurboTax Pros & Cons
Pros
- Expert help: Premium editions with live support from CPAs, EAs, and other tax experts available on demand (with Live Assisted plans) or full-service options where they do everything for you.
- Personalization: Customized support based on your tax situation to maximize tax deductions and minimize liability, getting the most out of your return.
- Outstanding user experience: TurboTax offers the most intuitive, user-friendly interface in the industry with step-by-step guidance that makes complex tax situations easier to navigate.
- Quicker direct deposits: Get up to $4,000 in tax return funds within minutes of the IRS accepting your return through TurboTax Refund Advance.
- Free option: TurboTax Free Edition for filers with simple returns is truly free for both federal and state returns (~37% of taxpayers qualify). Many other programs charge for state returns even when federal is free.
- Mobile app: Highly rated mobile app allows you to complete your entire return from your phone with the same features as the desktop version.
Cons
- Cost: More expensive than other tax software programs for paid or itemized return filing options. Can be $50-$100+ more than TaxAct for comparable DIY plans.
- Pricing transparency: TurboTax doesn’t show exact pricing until you’re deep into the filing process, which can be frustrating for users trying to compare costs upfront.
TaxAct Pros & Cons
Pros
- Affordability: For a non-basic return, pricing starts at just $29.99 compared to $39-$89 for TurboTax DIY plans. Self-employed filing is $69.99 vs. TurboTax’s $89 Premium tier.
- Consistent state pricing: All state returns cost $39.99 regardless of plan level, making it easier to budget and more affordable than TurboTax’s $59-$69 state fees.
- Promotions: During tax season, you’ll see many deals for TaxAct on rewards apps like Kashkick or RetailMeNot. This can include cash back rewards for signing up or coupon codes to save 25% or more.
- Professional help options: Xpert Assist ($45) and Xpert Full Service (starting at $99) provide affordable access to tax professionals without needing to upgrade to an expensive tier.
- $100,000 accuracy guarantee: Strong guarantee that covers penalties and interest if there’s a calculation error.
Cons
- Less beginner-friendly: Users who are not familiar with the e-filing process or who are inexperienced with taxes in general may find TaxAct a bit less intuitive than TurboTax. The interface doesn’t offer the same level of hand-holding throughout the filing process.
- No free state returns: Even if you qualify for free federal filing on TaxAct, there is an additional cost of $39.99 to submit your state tax return.
- Limited customer support: Phone support is only available Monday-Friday during business hours (not 24/7 like some competitors). Live chat can be glitchy and less reliable.
- Lower user ratings: TaxAct’s mobile app and overall user experience ratings lag behind TurboTax, particularly on Android devices.
TaxAct or TurboTax: Which Is Best for You?
It depends on what your tax situation is and how comfortable you are filing your taxes.
Choose TurboTax if:
- You want the most user-friendly, intuitive tax filing experience
- You prefer step-by-step guidance and extensive educational resources
- You want access to live tax experts on demand (with Live Assisted plans)
- You prefer to have your taxes done for you by a professional (Full Service)
- You qualify for the free edition (~37% of taxpayers) and want free federal and state filing
- You have a complex tax situation with multiple income sources and want comprehensive support
- You value a highly rated mobile app for filing on the go
- You’re willing to pay more for premium features and support
Choose TaxAct if:
- You’re looking for the most affordable paid tax software
- You’re comfortable navigating tax forms with minimal guidance
- You have a straightforward to moderately complex tax situation
- You want to save $40-$100+ on your tax filing costs
- You’re willing to pay for state returns ($39.99 per state)
- You don’t need 24/7 customer support
- You want the option to add affordable professional help ($45 for Xpert Assist or $99 for Full Service) without committing to an expensive plan upfront
The Bottom Line: For free filing with a simple return, TurboTax is the better option since it includes free state returns. But if you don’t qualify for free returns and are confident in your e-filing abilities, TaxAct offers excellent value with significantly lower pricing. TurboTax is the better choice if you want white-glove service, premium support options, or the most polished user experience — especially for complex returns with self-employment income, investments, and multiple income sources.