TaxACT Tax Software Review

TaxACT sets itself apart from other online and desktop tax software by offering quality income preparation tax software at an affordable price. TaxACT has been around since 1997 and has processed over 20 million tax returns since then. A preview version for the current tax software is available each October, and data entered in the preview rolls over to the final version, released each January.

TaxACT has a free mobile app, TaxACT Central, which is listed in my Android Tax Apps and iPhone Tax Apps.

First Look
My first impression of TaxACT is that it's very easy to navigate with an interface that's clearly defined and with easy access to the help resources and additional tax tools. Moving back or ahead in the return is easy to do.

I have one gripe with TaxACT: some tax topics aren't explained directly from the tax interview, instead the user is provided with a link to an IRS publication from the IRS web site. While this is an acceptable way of learning about a tax topic, those publications are wordy and often use terms or explanations not understandable to the average Joe taxpayer. It would be better if TaxACT had condensed explanations written up in the software in every-day English or it linked to its own Tax Tutor, but free tax and tech support via email, the Answer Center and low-cost phone support makes up for this issue.

TaxACT Free Edition is an excellent option for simple tax returns and is definitely a solution for more complicated returns as well. But, if you have multiple deductions or your return is otherwise not so simple, I recommend bumping up to the Deluxe version for additional features that will make preparing your return easier and faster for the bargain price of $9.95. The extra features in the Deluxe version aren't as well integrated in the software as found with pricier tax software, but if you want to spend less, all TaxACT versions are a great value. If you need to prepare a federal and state return, use TaxACT Ultimate Bundle which is priced under $20 (you can add state returns to the Free and Deluxe versions, noted below). Phone support for quick answers to both tax issues and tech support all year round is yet another value at a one-time charge of $7.95.

You can try TaxACT Online and no payment is required until you complete and file a return. Windows desktop software is also available. Online users lock in a 20% discount by registering before January 1, 2012. Prices quoted are subject to change throughout tax season, verify price before purchase.