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TaxAct Product Profile
The affordable guided alternative — covers every tax situation at half of TurboTax's price
Editorial review record is being refreshed.
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Product resource
TaxAct
Free plan available
The Bottom Line
TaxAct is The affordable guided alternative — covers every tax situation at half of TurboTax's price. This profile summarizes the product's current positioning, available features, pricing notes, and primary sources while the independent editorial review record is being refreshed.
What is TaxAct?
TaxAct was founded in 1998 by Lance Dunn and Alan Sptemporarily in Cedar Rapids, Iowa and was originally called 2nd Story Software. It was acquired by H&R Block in 2004, sold to a private equity firm in 2012, and has operated independently since. TaxAct processes millions of returns annually and competes primarily on price — positioned as the affordable alternative to TurboTax with professional-grade accuracy.
What does TaxAct offer?
TaxAct Free covers basic 1040 with W-2 income, child tax credits, and student loan interest deductions. Deluxe ($24.99 federal) handles itemized deductions, mortgage interest, and HSA. Premier ($34.99 federal) adds investment income, rental property, and K-1s. Self-Employed ($64.99 federal) covers Schedule C and freelance income. State returns cost $44.99 each. The $100K Accuracy Guarantee covers errors caused by TaxAct's software. Xpert Assist add-on provides on-demand CPA and tax expert support.
Free
$0
/year
Deluxe
$24.99
/year
Premier
$34.99
/year
Self-Employed
$64.99
/year
Editorial assessment refresh
We are re-sourcing our prior score and tier before publishing a numerical rating or testing claim for this product. The product details, pricing notes, and linked sources remain available while that work is completed.
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Get TaxAct →Frequently Asked Questions
Is TaxAct worth it in 2026?
TaxAct has a current product profile, but we are not publishing an independent value verdict until its editorial review record is sourced. Confirm current pricing, limits, and fit with the provider.
What is TaxAct best for?
TaxAct is best for: Cost-conscious filers with complex returns who find FreeTaxUSA's UI too basic, Self-employed filers who want guided experience at 27% below TurboTax price, Rental property owners (Schedule E) at $34.99 vs. TurboTax's $69.
Does TaxAct have a free plan?
Yes — TaxAct offers a free tier: Free covers basic W-2 returns with limited deductions — most filers with investments or self-employment need Deluxe+.
What are the best TaxAct alternatives?
Top alternatives to TaxAct include turbotax, hrblock, freetaxusa.
Review the current product details and sources above, then confirm plan limits and pricing directly with the provider before choosing a plan.
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