TaxAct vs TurboTax - Which One Should You Use?
Tax season is upon us, and with it comes the daunting task of filing taxes. Fortunately, we live in the age of cloud technology, and there are a plethora of cloud-based tax filing applications that make the process less intimidating. Two such applications that come to mind are TaxAct and TurboTax.
Before we get started, let us clarify that we are not affiliated with any of these companies. Our goal is to provide a factual and unbiased comparison so that you can make an informed decision on which tax application to choose.
Pricing
Let us dive into the pricing details of TaxAct and TurboTax.
TaxAct
TaxAct offers three pricing options:
- Free Edition: Ideal for simple tax returns, including itemized deductions and credit claims. Federal filing is free but state filing is an additional $4.95.
- Deluxe+: This option includes everything in the Free Edition plus assistance with investments and rental property income. It costs $54.95 for federal filing and $44.95 for state filing.
- Premier+: This option includes everything in the Deluxe+ edition plus guidance for Schedule C filers and support for cryptocurrencies. It costs $79.95 for federal filing and $44.95 for state filing.
TurboTax
TurboTax has four pricing options:
- Free Edition: Ideal for simple tax returns, including W-2 income, earned income tax credit (EITC), and child tax credits. Both federal and state filing is free.
- Deluxe: This option includes everything in the Free Edition plus assistance with mortgage interest and real estate taxes. It costs $60 for federal filing and $50 for state filing.
- Premier: This option includes everything in the Deluxe edition plus guidance for those with investments and rental properties. It costs $90 for federal filing and $50 for state filing.
- Self-Employed: This option is designed for freelancers and independent contractors. It includes all the features of the Premier edition, plus guidance for business-related tax deductions. It costs $120 for federal filing and $50 for state filing.
User Interface
Both TaxAct and TurboTax have user-friendly interfaces that guide you through the tax filing process step by step. TaxAct's interface is less flashy but is still easy to navigate. TurboTax's interface is a bit more polished and includes more graphics and icons.
Customer Support
In terms of customer support, both TaxAct and TurboTax offer online support forums, FAQs, and chat support. TurboTax also offers phone support on weekdays and Saturdays.
Final Verdict
While both TaxAct and TurboTax are great options for filing taxes, it ultimately comes down to your personal preference and tax needs. TaxAct is a more affordable option, especially for filers with more complicated returns, but TurboTax may be a better fit for those who prefer a more polished interface and more comprehensive customer support.
No matter which tax application you choose, we hope this unbiased comparison has helped you in making an informed decision.