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TaxAct vs. TurboTax • What is it all about?

Taxact and Turbotax can help you with your tax return

by Maria Laura
5 June, 2022 - Updated on 23 August, 2022
in Taxes
TaxAct vs. TurboTax • What is it all about?

Both TaxAct and TurboTax are softwares designed to do your taxes; although there are more options on the market, these are the most popular for their effectiveness. With tax season in full swing, you need to know the best way to file your return.

This year the IRS has emphasized using digital platforms to file electronically. The work can provide faster and timely responses to any inconvenience.

Contents

  • Which is better between TaxAct and Turbotax?
    • Why prefer TurboTax?
    • Why prefer TaxAct?
  • How does TurboTax works for tax filing?
  • How TaxAct work for tax filing?
  • What is the best free version between TurboTax and TaxAct?

Which is better between TaxAct and Turbotax?

With TurboTax, you find all your deductions; it is recommended especially for taxpayers with a complex tax landscape. TaxAct is good when you are confident in filing your taxes quickly.

The apps share some useful features, although depending on what you want to do, both offer the following:

  • Have a cumulative total of your estimated refund or tax due that you find at the top of each page
  • Explanations and question panel to help you find the information you need and enter your numbers
  • Request assistance from expert agents for an additional fee
  • Free option for your simple returns
  • It has solutions for uploading tax documents and past returns and also allows you to import data from other tax software.

TaxAct is often offered as a more affordable solution than TurboTax, but it does not work that way in all cases. The price depends on the types of income and deductions you file.

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Why prefer TurboTax?

  • You can import data from Square, Uber, QuickBooks, or Lift
  • You qualify for free filing
  • If you have a lot of deductions and plan to itemize, the software is efficient
  • You always have expert help

Why prefer TaxAct?

  • You want to save money
  • You are looking for a simpler interface
  • You are confident about filing your taxes

How does TurboTax works for tax filing?

The user experience with this software is fully interactive. As you progress through your return, the software provides you with guidance messages, explaining tax issues that may arise, but in easy-to-understand language.

From the home screen, you have different options for deductions and income; you also find goals and priorities. After filling out a simple form, TurboTax recommends which package you should get to complete your payments.

You also can request that a professional do the return for you. However, users typically complain about the number of upsell ads that pop up while using the software.

It is currently rated 4.5 out of 5, it is the most expensive option, but its interface and access to experts justify its prices. Prices range from $0 to $119 and have a $54 state filing fee added.

Through their platform, you find four ways to do your tax return; for simple tax situations, you have free options, it is software that you can manage from your mobile app, and it is easily updated to allow expert access.

How TaxAct work for tax filing?

It is an application with few flashy elements, ideal for avoiding distractions while doing your returns. You can directly access the preparation of your taxes; you only need to fill in a simple form to have the options adjusted to your needs.

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With TaxAct, you can move from one tab to another even if you have not completed all the information in one of them; this is not possible in TurboTax. Can meet the missing data TaxACT later.

It does not have such a good rating, obtaining 3.9 out of 5. The prices of the TaxAct plans range from $0 to $79.95, being able to request additional payments of between $39.95 / $54.95 per state. Its interface is simple and intuitive, where you will find four different plans for your returns.

What is the best free version between TurboTax and TaxAct?

Among the similarities of these platforms are the tax options offered in their free plan, although TurboTax provides you a free state return while TaxAct requests a payment of $19.95 per state.

Both options offer a free tax return with no income limits. You should also be prepared for the bombardment of offers that the free version of TurboTax has; it is one of the most uncomfortable situations specified by users.

We mean that both versions have their advantages and disadvantages; the choice between one or the other will depend on your tax needs.

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