TaxAct vs. TurboTax: Full Comparison

Are you ready to take charge of your taxes and make the most informed decision for your financial well-being? 

The choices in tax preparation software can be overwhelming, and many individuals struggle to decide between TaxAct and TurboTax. 

Every year, millions of Americans turn to tax filing software to electronically submit their tax returns, often wondering which is better between TaxAct and TurboTax.TaxAct and TurboTax stand as two of the most sought-after apps in the market to assist you in achieving this goal. They consistently earn high praise from finance and software review platforms, yet fundamental pricing and user interface distinctions exist.

In this comprehensive review, we will examine both options closely. We aim to outline the similarities and disparities between these two e-filing apps, ultimately helping you decide on the best match for your requirements.

Both platforms deliver a range of features and advantages, but how do you decide which one fits your specific needs? 

As we dive into the complete comparison of TaxAct vs. TurboTax, we'll explore the key factors that matter most to you. From user experience and interface design to pricing, customer support, and the depth of available tax forms and guidance, we'll leave no stone unturned. By the end of this comprehensive comparison, you'll have a clear understanding of the strengths and weaknesses of each platform, empowering you to make a confident and well-informed choice.

The goal here is to equip you with the insights and understanding you require to navigate the complexities of tax preparation software, ultimately helping you maximize your tax return and minimize the stress of tax season. 

So, let's embark on this journey together, and by the end, you'll be armed with the information you need to choose the best tax preparation software for your unique circumstances.

About TaxAct

Established in 1988, TaxAct is unwavering in our commitment to providing top-notch tax preparation solutions at affordable rates. Our objective is to help individuals navigate the complexities of tax season without experiencing significant financial burden. With millions of federal tax returns processed by customers, business owners, and tax professionals, TaxAct has earned widespread trust and confidence.TaxAct offers a variety of online DIY tax filing options, meticulously crafted to simplify the process and boost convenience. Equipped with step-by-step guidance, online tools, and a maximum refund guarantee, our solutions empower you to understand the filing procedure better while optimizing your tax returns. Furthermore, all options come with unlimited phone support, ensuring swift assistance with any specific tax-related inquiries that may arise.

About TurboTax

TurboTax is software designed to simplify the intricate process of filing taxes. In its basic form, especially in the free version, TurboTax aims to streamline the tax filing experience, making it more manageable. Beyond just easing the tax process, the software commits to maximizing your tax refund, asserting potential savings compared to manually filing taxes.

The TurboTax software is available in various tiers, each offering increased assistance and intricacy as the pricing increases. The free version permits straightforward self-service filing with minimal support.

As you progress through the tiers, you acquire access to more sophisticated features and higher levels of support. This can extend to personalized advice from a tax professional, providing a comprehensive range of options for users with varying needs and complexities in their tax situations.

TaxAct vs. TurboTax: Features

TaxAct Features:

Audit Support:

TaxAct provides a comprehensive FAQ page covering potential audit scenarios. For users seeking additional hands-on support, the Protection Plus service offered through a third-party company, is available for $49.95. This service guides users through the audit process and manages all communication with the IRS and state tax authorities, providing a thorough approach to audit-related challenges.

Tax Professional Support:

TaxAct Xpert Assist offers users direct guidance from a qualified tax expert. Users have the flexibility to seek on-demand assistance and can schedule a call in states where this service is eligible. This feature bridges the gap between DIY tax preparation and professional guidance, catering to users with varying levels of tax complexity.

Refund Options:

TaxAct provides flexibility in refund options, including direct deposit, a traditional paper check sent by mail, or the convenience of an American Express Serve card, which functions as a flexible prepaid debit card. This range of options lets users choose the best method for their preferences and financial needs.

Affordability:

With pricing starting at $24.95 for a federal tax return, TaxAct offers an affordable option for users with standard itemized deductions. This includes deductions for child care credit, dependents and dependent care, mortgage, and student loan interest. The pricing structure makes it a cost-effective choice for individuals with relatively straightforward tax situations.

Overall User Experience:

While TaxAct is generally praised for its ease of use, users may consider some aspects of the process less intuitive. The app has received good but not exceptional user ratings, with an average of 4.4 stars on iTunes and 3.0 stars on Google Play. The user experience is designed to efficiently guide users through the tax preparation process, though specific improvements could enhance overall satisfaction.

TurboTax Features:

Audit Support:

TurboTax includes audit support with all its returns, excluding Business CD/Download returns. This feature ensures users are prepared for potential audits by consulting a qualified tax professional. This proactive approach aims to ease the stress associated with audits and reinforces TurboTax's commitment to comprehensive support.

Audit Defense:

For a fee, TurboTax delivers an audit defense service that provides users with an additional protection layer. This optional service provides users with complete representation by a licensed tax skilled in case of an audit. This comprehensive approach includes managing all communications with the IRS, offering users peace of mind and expert support.

Refund Options:

TurboTax provides a diverse array of refund options, including direct deposit, a traditional check sent by mail, government savings bonds, or the unique ability to use the tax refund to prepay next year’s anticipated taxes. Additionally, TurboTax offers a Refund Advance option, allowing users to receive their tax returns within minutes of the IRS accepting their return and providing faster access to funds.

Advanced Options:

TurboTax's Full-Service tax filing option goes beyond traditional DIY tax preparation. In this premium service, a tax expert with credentials such as CPA, CFP, EA, or a similar designation completes the tax return for the user. The process involves meetings with the tax professional through phone or video calls, and users can work with the same tax pro for future year returns, ensuring a consistent and personalized experience.

Affordability:

TurboTax offers a free filing option for basic DIY returns, catering to users with more straightforward tax situations. For those requiring more complex returns with professional assistance, TurboTax's costs range from $120 to $409, depending on the level of support needed. This pricing structure positions TurboTax as a more affordable alternative than the potentially higher costs of hiring a CPA directly, making it an attractive choice for users seeking professional expertise without breaking the bank.

Accuracy Guarantee:

TurboTax delivers all filers a 100% accuracy pledge, which covers guarantees for maximum refunds, accurate tax liability calculations, and support in the event of an audit. This commitment reinforces TurboTax's dedication to accuracy and customer satisfaction.

Overall User Experience:

TurboTax stands out for its outstanding user experience, which is characterized by user-friendly and intuitive software. Based on user reviews, the app has an impressive 4.8-star rating on iTunes and a 4.6-star rating on the Google Play Store. The positive user feedback reflects TurboTax's effectiveness in delivering a seamless and satisfactory tax preparation experience.

TaxAct vs. TurboTax: Customer Support

Regarding customer support, TaxAct and TurboTax are committed to providing users with various assistance options, covering software-related queries, refund concerns, audit issues, and other common questions. Let's delve into the specific customer support services offered by each tax-filing program:

TurboTax Customer Support:

TurboTax stands out for its user-centric approach, offering various support options for user needs.

Users seeking assistance can get out through multiple channels:

• Email: TurboTax provides email support at ttappfeedback@intuit.com or security@intuit.com, allowing users to efficiently address software or security-related concerns.

• Phone: A direct phone line to the parent company Intuit's customer support (1-800-4INTUIT or 1-800-446-8848) ensures users can access personalized assistance and prompt responses to their queries.

• Video-Conferencing: TurboTax Live video support is a distinctive feature for full-service and assisted filers. It allows for one-way video calls where the tax professional is visible, providing a more personalized touch to customer assistance.

• Chat: TurboTax offers live chat support during the tax filing season, facilitating real-time communication for immediate problem resolution and clarifications.

• TurboTax Support: The platform goes beyond direct support by providing a resource hub. This includes how-to articles, videos with step-by-step tips, general tax information, and detailed guidance for specific scenarios like homeownership, rental property income, and self-employment.

• Community Forum: TurboTax's community forums allow users to interact, share experiences, and find answers to various tax-related questions. This community-driven support adds a collaborative dimension to customer assistance.

TaxAct Customer Support:

TaxAct is dedicated to offering comprehensive customer support through various channels to address users' concerns and provide guidance throughout the tax-filing process:

• Email: While TaxAct doesn't have a dedicated customer support email, users can email marketing@taxact.com or abuse@taxact.com, which allows tailored responses to particular issues or inquiries.

• Phone: TaxAct provides phone support to users at (319) 373-3600 from 8 a.m. to 5 p.m. CST on weekdays to accommodate various schedules.

• Video-Conferencing: Professional support through video calls is available, particularly with Xpert Assist plans. This feature directly connects with tax professionals, offering personalized guidance to users with varying tax complexities.

• Chat: Live chat support is accessible on the TaxAct website. However, specific chat agent hours are not published, and some users have reported technical glitches with the chat feature.

• Professional or Audit Support: Customers who have opted for Protection Plus for audit defense can contact the main phone line at (319) 373-3600, ensuring direct access to professional support in case of audits or other complexities.

• Help Topics: TaxAct provides users with a comprehensive library of resources, including how-to guides, frequently asked questions, and informative articles covering various topics. This self-help tool enables users to find answers independently.

TaxAct and TurboTax recognize the significance of robust customer support in enhancing the user experience. Whether through personalized assistance, comprehensive resource hubs, or community forums, these tax-filing programs aim to cater to taxpayers' diverse needs and provide support throughout the intricate tax-filing process.

TaxAct vs. TurboTax: Pros and Cons

When comparing TaxAct and TurboTax, it's essential to consider the strengths and weaknesses of each tax preparation software. Here's an overview of the pros and cons associated with both platforms:

TaxAct:

Pros:

• Affordability: TaxAct is often praised for its cost-effectiveness, with pricing starting lower than some competitors. It delivers a budget-friendly option for users with straightforward tax situations.

• Audit Support: While essential audit support is available through an FAQ page, TaxAct offers additional hands-on audit support through Protection Plus, albeit for an extra fee.

• User Experience: TaxAct is generally user-friendly and guides users through the tax preparation process. It has received positive feedback for the comfort of use, especially for individuals with uncomplicated tax scenarios.

Cons:

• Limited Customer Support Hours: The customer support phone line has limited hours of operation, which may pose challenges for users in extra time zones or those with non-traditional working hours.

• Less Intuitive in Some Areas: While user-friendly, some users have reported that certain parts of the TaxAct process may be less intuitive than other tax software.

• Fewer Advanced Features: TaxAct may offer fewer advanced features than TurboTax, which could be a drawback for users with complex tax situations seeking more sophisticated tools.

TurboTax:

Pros:

• Comprehensive Customer Support: TurboTax is known for its extensive customer support options, including email, phone, video-conferencing, and live chat. This ensures users have various channels to address their queries.

• User-Friendly Interface: TurboTax boasts an outstanding user interface, providing a seamless and intuitive experience. The software assists users in filing their taxes with clear instructions and ease of use.

• Advanced Features: TurboTax offers a range of advanced features, making it suitable for users with complex tax situations. This includes TurboTax Live for real-time assistance and advanced options like Full-Service tax filing.

Cons:

• Higher Costs: TurboTax can be relatively more expensive, especially for users with complex tax needs opting for advanced features or professional assistance.

• Chat Feature Glitches: Some users have reported glitches with the live chat feature, which could potentially inconvenience those relying on real-time online support.

• Limited Phone Support for Free Version: Users utilizing the accessible version of TurboTax may have limited access to phone support, potentially affecting the level of assistance available.

TaxAct vs. TurboTax: How to SignUp

Signing up for TaxAct or TurboTax involves creating an account on their platforms. Here's a general overview of how to sign up for each service:

TaxAct:

• Visit the TaxAct Website: Go to the official TaxAct website (https://www.taxact.com/).

• Choose a Product: Select the TaxAct product that best suits your needs. TaxAct offers various options, including Free, Deluxe, Premier, and Self-Employed.

• Create an Account: Click either the "Sign Up" or "Create an Account" button to get initiated. You must provide a valid email address and create a password.

• Enter Personal Information: Fill in the required personal information, such as your name, address, Social Security Number, and other relevant details.

• Choose Security Questions: Set up security questions to help secure your account.

• Verify Email: To verify your email, please click the verification link from the TaxAct email.

• Complete Account Setup: You may need to provide additional financial information to complete your account setup.

• Select a Plan: Choose the specific plan you want to use (Free, Deluxe, Premier, or Self-Employed) and proceed to the filing process.

TurboTax:

• Visit the TurboTax Website: Go to the official TurboTax website (https://turbotax.intuit.com/).

• Select a Product: Choose the TurboTax product that matches your tax situation. TurboTax offers Free Edition, Deluxe, Premier, and Self-Employed options.

• Create an Account: Click "Sign In" or "Build an Account" to create the account. You'll need to deliver a valid email address and create a password.

• Enter Personal Information: Provide your personal information, such as name, address, Social Security Number, and other relevant details.

• Set Up Security: Establish security measures, such as setting up security questions or two-factor authentication.

• Verify Email: Match your email for a verification message sent by TurboTax. Then, click on the provided verification link to verify your email address.

• Complete Account Setup: Follow the on-screen prompts to finish the account setup, providing any additional necessary information.

• Select a Plan: Choose the specific TurboTax plan you want (Free Edition, Deluxe, Premier, or Self-Employed) and proceed with the tax preparation process.

TaxAct vs. TurboTax: Pricing

TaxAct:

 TurboTax:

TaxAct or TurboTax: Which Is Best for You?

Choosing between TaxAct and TurboTax depends on your specific tax situation and your comfort level with the tax filing process.

If you are looking for free filing, TurboTax has a slight edge as it allows users to submit federal and state tax returns for free, providing a better user experience. However, if your tax situation disqualifies you from a free return, you must claim property taxes or mortgage interest deductions. If you are confident in your e-filing abilities, TaxAct is an excellent and budget-friendly alternative.

TurboTax becomes the preferred choice if you desire a white-glove service with expert assistance or to have your taxes done for you. It excels, especially if your financial situation involves more complex elements such as Schedule C income, capital gains, or independent contractor deductions. TurboTax's extensive support options make it the better choice for those seeking comprehensive assistance and guidance throughout the tax filing process.