Filing your taxes is a pain, but there are a lot of things that you can do to make it easier. Choosing the right tax software can make all the difference in how easy (or difficult) your tax season is. If you’re feeling overwhelmed by your options, this guide will walk you through everything you need to know about TurboTax, TaxAct and other popular tax preparation software.
You’ll learn more about their features, costs and why one might be better suited to your situation than the other.
Tax Act vs TurboTax
TaxAct is an affordable option, but TurboTax and H&R block are more popular. If you’re looking for the cheapest way to file your taxes, TaxAct may be the best option for you. It’s also a good choice for those who don’t have any previous tax experience.
See: Turbotax Review 2024: A Comprehensive Guide
However, if you’ve filed before or would prefer an app over a website, TurboTax may be the better choice. It is also one of the most popular options available in terms of price and customer satisfaction.
H&R block is another popular option that offers access to advisors and other services if you need them. For example, if you’re self-employed or have complicated taxes, they offer a service that will give you advice on what taxes to pay and when to file them.
Also read: Credit Karma Login 2024: How to Log in and Access Your Credit Report
TurboTax was designed with simplicity in mind to help make filing your taxes as easy as possible; however, this can make it less comprehensive than Tax Act–which provides detailed reports on deductions and credits available to taxpayers with special circumstances like rental property owners or college students receiving tuition credits from their parents.
You can check out our blog post about factors to consider when choosing tax software here: http://www.taxactvsintuitsoftware.com/blog/
What is TaxAct?
TaxAct is a company that provides online tax preparation software. Unlike TurboTax, you don’t have to go anywhere or do anything to use this service. You can prepare and file your taxes right from the comfort of your own home as TaxAct offers both a desktop program and an online version.
TaxAct also offers two different levels of service: Basic 1040EZ and Deluxe 1040A/1040. The Basic 1040EZ package includes all the basic forms you need to complete your taxes, but it doesn’t include everything in the Deluxe 1040A/1040 package.
However, the Deluxe package does come with extra guidance for self-employed taxpayers, investment income, expenses and deductions which may be helpful if you have those needs.
If you want more than just basic forms, TaxAct is a great option for you as its packages are very cost-effective and easy to use. If you only need the simplest tax forms for filing your taxes (e.g. Dependents, Income & Credits), then TaxAct is definitely worth considering!
What is TurboTax?
TurboTax is a popular tax software that was originally developed in the 1980s. It’s now owned by Intuit and helps more than 25 million Americans file their taxes each year.
Some features of TurboTax include:
- A guide for you to follow throughout your tax filing process
- Quizzes to make sure you answer all necessary questions
- An interview with a professional who will walk you through your return
- Deduction finder to help you maximize your deductions, credits and exemptions
Who Should Use TaxAct?
The TaxAct software is the best choice for customers who are filing a 1040EZ, 1040A or 1040. It’s also a good option if you want to file your taxes for free. However, there are other things that you need to consider when deciding which tax preparation software is right for you.
Who Should Use TurboTax?
If you’re in a position where you have a lot of deductions and other forms of tax credits to claim, then TurboTax is the better option. They offer a more comprehensive interface that enables users to do more detailed calculations when they prep their taxes.
On the other hand, if you don’t think you need all of those details, TaxAct might be best for you. This software is cheaper than TurboTax and has a much simpler interface that is easy to use.
The Best Tax Preparation Software for Your Situation
Depending on your situation, you may find that TurboTax is the best option for you. But if you’re looking to file taxes for a business and ever need to fill out Schedule C, Form 1065, or other forms related to investments, you might want to go with TaxAct. TurboTax also offers a more detailed search functionality when it comes to finding deductions and credits.
However, if you’re trying to choose between TaxAct vs TurboTax, the decision becomes a bit trickier because they have different features. If your goal is to file as many returns as possible in one sitting at the lowest cost possible, then TaxACT is likely the better option for you.
You can purchase the software outright for $34.95 instead of $54.95 with TurboTax (plus $29.99 per state). And while it doesn’t offer some of the same bells and whistles as TurboTax (i.e., audit protection), it does have a comparable customer service team behind it should you need any help filing your return.
Features of TaxAct and TurboTax
TaxAct and TurboTax are both popular options for tax preparation. However, they differ in various ways. TaxAct is less expensive than TurboTax, but it takes longer to file your taxes with the program. TurboTax can be more expensive, but it saves time and is easier to use.
For example, TaxAct has a “guess my answers” feature that will automatically fill out basic forms for you if you don’t know the answer to a question. This might be useful for people who are not well-versed in filing their own taxes or who have never done so before and don’t have any idea where to start.
Which one is right for you?
If you’re filing your taxes for the first time and have a relatively simple return, either TurboTax or TaxAct is fine. If you’re self-employed and have a more complicated return, we recommend using TurboTax Self-Employed.
If you want to be able to import last year’s tax info, use your W-2 information and don’t worry about anything else, we recommend using TurboTax Premier.
See: TurboTax Login: How to Use TurboTax for Beginners
If you want to be able to import last year’s tax info, use your W-2 information and also want the option of handling investment income, sales of stocks or mutual funds and real estate transactions yourself (but still want assistance with other things like inputting data from various sources), we recommend using TurboTax Self-Employed
Choosing TaxAct or TurboTax
Tax preparation software is a great resource for taxpayers. It can help you stay organized, complete your taxes faster and even get assistance on the more confusing parts of tax law. However, there are a lot of different brands to choose from. The two most recognizable brands are TurboTax and TaxAct.
There are pros and cons to both of these options, so it’s important to understand what each has to offer before making your decision. For one thing, if you’re looking for free or discounted software with an easy-to-use interface, TaxAct might be the best option for you. On the other hand, TurboTax offers more in-depth knowledge on tax law and provides customer support via phone or chat all year round.
Cost of TaxAct vs. Cost of TurboTax
The most obvious difference between TaxAct and TurboTax is the cost. TaxAct is free, but you may still need to pay for an e-file. The majority of people will select TurboTax because of the higher price tag.
TurboTax offers a free federal return with their basic package, but there are additional charges, depending on your situation:
If you have a state tax, then you will have to purchase the Deluxe or Premier packages. However, if you own a small business, file rental property income or have more than one job then you will need to upgrade to the other higher packages as well.
Meanwhile with TaxACT, they offer quick and easy forms that are updated for 2018. There are no hidden costs and it’s easy to use. You can fill out your taxes in under half an hour without making any errors and there’s no fee for filing electronically (you’ll want to choose that option).
TurboTax is definitely more pricey than TaxACT, but it also has advantages that make it worth it for some people: