In this TaxAct vs TurboTax faceoff, TaxAct stands out as the more budget-conscious option, great if your small business wants to handle tax filing efficiently without paying a premium. TurboTax, by contrast, is the better match if you prefer a guided, full-service experience with extra hands-on support.
In this comparison, I’ll help you explore their pricing, core features, user experience, customer service, and helpful tools to assist in determining which software best aligns with your filing preferences. While both bring something valuable to the table, the right platform depends on your budget, comfort level, and how much support you want during tax season.
Quick comparison of TaxAct vs TurboTax
| Best for | Individuals, families, and small business owners seeking a low-cost, DIY solution | Simple individual returns to more complex filings involving investments and small business income |
| Pricing | ||
| Free trial | ||
| Full-service from a tax pro | ||
| Mobile app | ||
| Free federal return for active duty military | ||
| Data import | ||
| Schedule C for sole proprietors and SMLLCs |
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| S-corp and partnership returns | ||
Author’s note: Each provides a specialized online platform for tax professionals. Although not reviewed in this comparison, those editions are built for accountants and certified preparers handling client returns.
Pricing: TaxAct wins
If you’re focused on avoiding surprise fees and managing costs without sacrificing essential tools, TaxAct offers better value. Its pricing model is straightforward and reliable, sticking more closely to its advertised prices. Each tier clearly lists what’s included, and fewer features are locked behind paywalls. Tools like prior year import and broader form access are available without extra cost.
And while both providers use tiered pricing, TurboTax is often criticized for hidden fees and upselling; you may start filing for free but later face unexpected charges for forms, state returns, or support. Although TurboTax may be slightly more convenient for businesses with varied structures, TaxAct delivers greater savings across most plans, both for individuals and businesses.
- Online: TaxAct starts free for simple returns and goes up to $109.99 for self-employed users. TurboTax also provides a free tier for its self-prepared option but can reach $129 or more for comparable options, with state filing fees added on.
- Desktop: TaxAct’s pricing runs from $139.99 to $159.99 and includes five federal e-files; state returns cost extra. Meanwhile, TurboTax’s software starts at $80 and increases with return complexity, plus added fees for states.
- Business filings: TaxAct offers separate desktop software for C-corps, S-corps, and partnerships, each priced at $109.99, whereas TurboTax provides business desktop products for multiple entity types starting at $119.
TaxAct
| Form 1040 only | Simple returns without itemized deductions or additional schedules | ||||
| Form 1040 with Schedules 1-3 | Filers with deductions, credits, or adjustments to income | ||||
| Form 1040 with rental property, investments, or crypto | Those with investment income, rental properties, or cryptocurrency transaction | ||||
| Form 1040 with self-employed incom | Freelancers, independent contractors, and small business owners | ||||
| Business returns (Forms 1120, 1120S, or 1065) | Those with corporate and partnership tax filings; includes one federal return | ||||
| Live assistance (Xpert Assist) for Forms 1040, 1120, 1120S, or 1065 |
Filers with individual, corporate, and partnership tax filings |
TurboTax
| Form 1040 only | Simple tax situations with W-2 income and limited credits | ||||
| Form 1040 with Schedules 1-3 | Those claiming deductions like mortgage interest and student loan interest | ||||
| Form 1040 with rental property, investments, or crypto | Investors and rental property owners | ||||
| Form 1040 with self-employed income | Freelancers, contractors, and small business owners | ||||
| Full-service individual filing (Form 1065/1120) | Filers needing full preparation and filing by a tax expert; pricing increases with complexity | ||||
| Form 1040 with Schedules 1-3 | Those needing 5 federal e-files and 1 state download (included in plan); state e-file sold separately | ||||
| Form 1040 with rental property, investments, or crypto | Those needing 5 federal e-files and 1 state download (included in plan); state e-file sold separately | ||||
| Form 1040 with self-employed income | Those needing 5 federal e-files and 1 state download (included in plan); state e-file sold separately | ||||
| Business returns (Forms 1120, 1120S, or 1065) | Corporations, S-corps, and partnerships | ||||
| Full-service business filing (Form 1065/1120) | Filers needing a tax expert to handle the entire business filing process |
Feature comparison: TurboTax wins
Live assistance: TurboTax wins
TurboTax’s interface is easy to use, and expert help is available around the clock. Though it costs more, TurboTax’s live assistance is a more comprehensive option.
The provider offers two strong support options: Live Assisted and Live Full Service.
- Live Assisted enables you to connect with a tax expert in real time via one-way video.
- Full Service lets a professional handle and file your taxes for you.
In contrast, TaxAct’s Xpert Assist gives you access to certified tax pros who can answer questions and review returns. It is available for an extra fee and pairs with TaxAct’s budget-friendly pricing. However, support is limited to chat or scheduled calls, with no live video, which can slow down help for complex issues.
Customer support tools: TurboTax wins
Both include customer support options that vary in depth and accessibility, and in terms of availability and convenience, TurboTax takes the lead. It provides more extensive support tools, including 24/7 access to a help center, virtual assistants, and guided prompts during filing. Its interface helps reduce confusion by addressing common questions early. Additionally, TurboTax Live lets you connect with CPAs and offers full-service preparation in premium tiers.
TaxAct, on the other hand, offers a help center, FAQs, and email support. Higher-tier packages include Xpert Assist, which connects filers with tax experts. However, this feature is available only with a paid plan. In addition, wait times for service can be long. The platform works well but lacks certain design features that might make it so customers have less need for live support.
FAFSA
assistance: TurboTax wins
While both offer tools to help students and families navigate the FAFSA, TurboTax emerges as the winner for FAFSA assistance with its smart integration and thorough support options. It offers a more comprehensive and polished FAFSA support experience.
Through its integration with Intuit’s broader ecosystem and tools like TurboTax Live, you can access real-time assistance from tax professionals and clear explanations of how your tax data impacts your financial aid eligibility. TurboTax also proactively suggests how to optimize your return for FAFSA purposes.
Meanwhile, TaxAct includes FAFSA assistance as a helpful add-on during the tax filing process, offering a simple step-by-step guide that uses your tax return data to pre-fill relevant sections. While it is functional and aligns with basic needs, it is relatively limited in scope and doesn’t provide dedicated support or advanced guidance for complex financial situations.
Data import features: Tie
TaxAct and TurboTax are evenly matched when it comes to importing tax documents. The following apply to both:
- Allow you to import W-2s, 1099s, and prior-year returns with minimal effort
- Support PDF file uploads and direct transfers from payroll providers or financial institutions
- Retrieve data from past returns (if you’ve used either platform before)
- Connect with major banks and employers to pull information securely
- Have a clear upload process, with helpful prompts and instant confirmation
Use cases
Choose TaxAct if you
- Need to file multiple state returns and want more cost-effective options than premium competitors
- Are filing amended returns and want clear guidance included without paying extra
- Appreciate access to a price lock guarantee so that you know the cost won’t increase later in the process
- Want to maximize tax savings with built-in calculators for dependents, credits, and deductions
- Prefer a platform that offers downloadable desktop software for offline preparation and storage
| Pros | Cons |
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Choose TurboTax if you
- Receive income from multiple states and want built-in support for multi-state filing
- Sell cryptocurrency and need detailed guidance on how to report digital asset transactions
- Have foreign income or accounts and need help navigating international tax reporting
- Want automatic import of investment transactions from brokers like Robinhood or E*TRADE
- Need combined support for W-2 and 1099 income and are filing jointly with a self-employed spouse
| Pros | Cons |
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My methodology
To assess the strengths and limitations of TaxAct and TurboTax, I concentrated on the elements that shape the overall filing journey. Rather than focusing solely on the technical aspects, the intent was to highlight which platform provides the most practical combination of affordability, convenience, and assistance across a variety of tax needs.
The primary areas I examined were as follows:
- Cost-effectiveness and plan structure: I analyzed the expenses associated with each service, including entry-level plans, filing tiers, and added charges for extras like state returns or expert consultations.
- Form adaptability and coverage range: I explored each tool’s ability to manage diverse financial scenarios, from freelance work and dividend income to claiming credits and advanced deductions.
- User interface and platform simplicity: My review considered how easily users can navigate each service, including walkthrough design, progress tracking, and clarity of instructions for different skill levels.
- Mobile experience and cross-device support: I explored the functionality of mobile solutions, including the ability to scan forms and follow refund status.
- Assistance channels and post-filing services: I compared help offerings such as chat tools, access to credentialed professionals, and audit-related protections, paying close attention to whether they’re built-in or add-on features.
- Tax optimization and savings discovery: I looked at how each option helps users uncover savings opportunities, including dynamic question flows, deduction finders, and proactive adjustments based on entered data.
Frequently asked questions (FAQs)
Can I switch between TaxAct and TurboTax if I’ve already started my return on one?
Yes, you can switch platforms mid-process, but it requires starting over manually. Neither TaxAct nor TurboTax allows for directly importing partially completed returns from other providers. You’ll need to re-enter your information on the new platform, though you can download your previous work as a reference to facilitate the transition.
Which platform offers better resources for users who filed an extension?
TaxAct makes it easier to file and track extensions within the same interface, offering a free extension tool and clear guidance for applying Form 4868. TurboTax also supports extensions but tends to promote premium versions with expert help for extended returns.
Do either TaxAct or TurboTax support filing for prior tax years?
Yes, both platforms allow filing for previous tax years, but primarily through their downloadable desktop software. TurboTax provides downloadable versions for up to seven past years, and TaxAct offers access to older software versions as well.
How do TaxAct and TurboTax handle health insurance reporting, including ACA (Form 1095-A)?
Both TaxAct and TurboTax support Form 1095-A for reporting Health Insurance Marketplace® coverage. TurboTax provides more extensive handholding, including automated error checks and explanations of Premium Tax Credits. Meanwhile, TaxAct includes the form in its core offerings without requiring an upgrade, which may be more appealing to users on a budget.
Can I file a nonresident state return on both platforms if I worked in a state different from where I live?
Yes, both TaxAct and TurboTax support nonresident and part-year state returns, but implementation varies. TurboTax handles multiple state filings more intuitively, especially for complex filings. TaxAct also allows for nonresident filings and is more affordable, but its interface is less automated.
