taxact.com

January 16, 2026

What TaxAct.com Is and Why It Matters

TaxAct.com is the online home of TaxAct, a U.S.-based tax preparation software and service that helps individuals, self-employed people, small businesses, and tax professionals prepare and file their tax returns. It’s been around since 1998, and its core purpose is to make filing income taxes easier and more affordable than traditional methods.

At its core, TaxAct is an online tax filing platform that guides users through the process of completing federal and state tax returns. The company also offers downloadable software and a suite of professional tools for accountants and tax preparers.

The company has a long history. It started as “2nd Story Software,” grew into a known name in the DIY tax software industry, and today operates under the ownership of private equity firm Cinven. It’s part of the IRS Free File Alliance, meaning it participates in a program that lets eligible taxpayers file for free within IRS guidelines.

How TaxAct.com Works

When you go to TaxAct.com, you can choose the way you want to file your taxes — from very basic federal returns to more complex situations requiring detailed forms and schedules. The interface typically asks you a series of questions about income, deductions, credits, and life events, then fills in the correct tax forms based on your answers.

Here’s a breakdown of the typical workflow you’ll see on the site:

  • You create an account and choose a filing option.
  • You enter your personal and tax information (W-2s, 1099s, deductions, etc.).
  • TaxAct walks you through the forms and flags common errors in real time.
  • When complete, you e-file your federal return and optionally your state return.
  • You can pay any tax owed or select direct deposit for refunds.

There are also downloadable desktop versions and professional editions tailored for firms preparing taxes for multiple clients.

Pricing and Plans

TaxAct’s pricing structure is tiered, which means you pay based on how complex your situation is:

  • Free Edition – Federal filing at $0 for eligible users with simple situations (e.g., W-2 income, certain credits). State returns typically cost extra.
  • Deluxe – A paid option that adds more deductions and credit features.
  • Premier – Geared toward investors, rental property owners, and folks with broader income sources.
  • Self-Employed – Designed for freelancers, contractors, and small business income.

Prices change year to year and often include an extra fee for each state return. Some reviewers have noted that while federal filing may be free for qualifying filers, state filing fees are almost always extra.

There’s also an add-on called Xpert Assist, where you pay more to get live help from a tax expert as you file.

For professionals, TaxAct Professional editions have separate pricing, usually with usage-based fees and options for federal/state bundles.

Features and Tools

TaxAct covers a wide range of filing needs:

  • Basic and complex returns – from simple 1040 filings to business income and investments.
  • W-2 and 1099 imports – helps speed up data entry.
  • Error checking – tools to catch common mistakes before submission.
  • Calculators and tax tools – including a tax bracket calculator and various deduction finders.
  • Cloud saving and access across devices – for online plans.
  • Professional support add-ons – like live chat, expert review, and priority support in higher tiers or with add-ons.

Who Uses TaxAct?

TaxAct is often chosen by users who want a cost-effective alternative to big names like TurboTax or H&R Block, especially if they are comfortable with doing their taxes themselves. It’s popular with:

  • Individuals with basic to moderately complex tax situations.
  • Freelancers, contractors, and gig workers.
  • People with investments, rental properties, or various income types (Premier users).
  • Small business owners using the self-employed or professional editions.

The platform isn’t just for tech-savvy filers. It can also work for first-timers with straightforward situations. But some reviewers and users mention that people unfamiliar with tax forms may need time to adjust or might prefer live support for complex questions.

Pros and Cons Based on Reviews

No tax software is perfect, and TaxAct is no exception. Here’s what independent reviews and user feedback tend to highlight:

Pros

  • Affordable compared with many competitors.
  • Straightforward step-by-step interface for most users.
  • Broad coverage for different tax needs, including investments and self-employment.
  • Tools like error checking and deduction finders.

Cons

  • Some users on review sites complain about unexpected fees, confusing pricing, and customer support issues.
  • State filing fees still add up even if federal filing is free.
  • Not as visually advanced or feature-rich as higher-end competitors.

Free Filing and IRS Partnership

TaxAct participates in the IRS Free File program, which allows many taxpayers with lower to moderate incomes to file their federal returns for free under specific eligibility criteria — a benefit of the partnership between private tax software companies and the IRS.

While the Free File option can be valuable, it’s worth checking the exact qualification rules, because not all users will meet them and state returns often require a separate fee.

Security and Support

Like most major tax platforms, TaxAct uses encryption and secure systems to protect sensitive tax data. It also keeps its tax calculations updated with the latest IRS tax law changes.

Support varies by plan level — live expert help costs extra — and user reports on customer service are mixed. Some praise the guidance and accuracy features, while others report frustration with support responsiveness and billing surprises.

Key Takeaways

  • TaxAct.com is the official online tax preparation platform of TaxAct, established in 1998 and widely used in the U.S. tax market.
  • The platform offers tiered pricing — from basic free federal filings to more advanced plans for complex returns and professionals.
  • It supports multiple types of tax situations, including investments, rental income, and self-employment income.
  • Users highlight it as cost-effective, with helpful tools and a familiar question-based interface.
  • Drawbacks include potential extra fees for state filings and mixed customer service reviews.

FAQ

Is TaxAct.com free to use?
There is a free federal filing option for eligible filers with simple returns, but state returns usually cost extra.

Can TaxAct handle complex tax situations?
Yes, with the Premier or Self-Employed plans, TaxAct supports investment income, rental properties, contractor income, and other detailed forms.

Is TaxAct safe to use?
TaxAct uses encryption and up-to-date security practices. However, individual experiences with customer support and unexpected fees can vary.

Does TaxAct offer help if I get stuck?
Yes. You can get expert support via add-ons like Xpert Assist, though this usually costs extra.