Tool profile
TaxAct: cost, fit and limits
TaxAct is a tax preparation service made by TaxAct, LLC, a Taxwell company, that lets individuals file federal and state income tax returns online or on a mobile app, with a free federal tier, paid tiers by income type and an expert-help add-on.
What to know first
TaxAct splits its individual tiers by what you earn rather than what features you want. Free covers W-2 and unemployment income, Deluxe adds home ownership, Premier adds investments and rental income, and Self-Employed adds freelance and rideshare income. State returns cost extra on every tier. Xpert Assist adds live expert advice, and the pages checked name no AI feature. The page lists a $100k Accuracy Guarantee for self-prepared individual returns.
TaxAct at a glance
| Maker | TaxAct, LLC, a Taxwell company, Not stated on the vendor pages |
|---|---|
| Free plan | Yes |
| Entry price | $0 federal, state extra |
| API access | No |
| Category | Best AI Tax Preparation Software in 2026, rank 3 of 10 |
| Website | taxact.com |
Who TaxAct is best for
Filers with simple W-2 income
The Free tier covers federal filing for W-2 and unemployment income, students and the child tax credit, and the page says about 40% of filers qualified last year.
Investors and landlords
Premier at $99.99 adds selling stocks or crypto, selling a home and rental income, which saves the jump to the self-employed tier.
People who want a human to check the return
Xpert Assist adds unlimited live tax advice, so a nervous first-time filer can ask questions while preparing. Xpert Assist is sold as an add-on to every tier, so the cost rises only for filers who ask for it.
TaxAct plans and pricing
| Plan | Price | What it includes |
|---|---|---|
| Free | $0.00 plus state fee | Federal return for W-2 and unemployment income, students, the child tax credit and similar situations as listed. |
| Deluxe (Home & Family) | $59.99 plus state fee | Everything in Free plus home ownership, child and dependent care and Health Savings Account reporting. |
| Premier (Investments) | $99.99 plus state fee | Everything in Deluxe plus selling stocks or crypto, selling a home and rental income. Premier is the first tier priced for crypto sales, which makes it the usual choice for investors. |
| Self-Employed (Entrepreneur) | $109.99 plus state fee | Everything in Premier plus contract, freelance and rideshare income for owners and sole proprietors. It is the top individual tier on the page and the only one aimed at owners and sole proprietors. |
| Xpert Assist add-on | $45.00 in the table, $60 in the FAQ | Unlimited live advice from tax experts, available with Free, Deluxe, Premier and Self-Employed. The two prices come from the comparison table and the FAQ of the same file-your-own page. |
Checked November 2026.
What TaxAct does
- Free federal filing
- The page says about 40% of filers qualified for the free federal tier last year, and state returns are charged separately. Eligibility is described by situation, for example students and child tax credit claims.
- $100k Accuracy Guarantee
- Applies to self-prepared individual 1040 products and is subject to conditions the page links to, so read them before counting on it. The page gives the guarantee as a headline amount, and the claim process was not read.
- Refund options
- Refund Advance and Refund Transfer are listed, along with Audit Defense, for filers who want a loan against the refund or fee deduction from it.
- Mobile app
- TaxAct Mobile lets a filer prepare a return on a phone, though the pages read do not list which tiers it supports. The app appears on the consumer page next to the online editions and refund options.
- Professional edition
- TaxAct Professional for CPAs and preparers, plus returns for partnerships and corporations, sit on the same site as the consumer product. The professional product has its own pages, which were not read for pricing.
How TaxAct handles your data
The security page says data is encrypted when it is sent to TaxAct or the IRS using SSL, and names no certification such as SOC 2 or ISO 27001. It does not say whether tax data trains AI models, how long returns are retained or where they are hosted, and the privacy policy was not opened. A filer who wants those answers should read the privacy policy before entering a Social Security number.
Where TaxAct falls short in practice
- State fees on every tier. The free federal tier still charges for state returns, so a filer in a state with income tax pays beyond the advertised price. Add the state fee to every figure on the page when you compare TaxAct with a flat-price service such as 1040.com.
- Conflicting Xpert Assist price. The same page shows $45.00 in the comparison table and $60 in the FAQ, so the add-on cost is only certain at checkout. Expect to confirm the real amount in the cart, since the pricing table and the FAQ cannot both be correct.
- Guarantee conditions. The $100k Accuracy Guarantee covers self-prepared individual 1040 products only, with conditions, and does not extend to business returns. Partnership and corporate returns filed through TaxAct fall outside it, and the conditions sit on a linked page.
- No AI feature named. The pages checked describe no AI import or assistant, so a buyer who wants automated form reading should look at other products. OLT.com is the closer fit here, since its homepage describes an AI import for W-2 and 1099 forms.
Works with
Alternatives to TaxAct
TaxAct: common questions
Is TaxAct free for federal returns?
Yes for the Free tier, at $0.00 plus any state fee, and the page says about 40% of filers qualified last year. It covers W-2 and unemployment income, students and the child tax credit. Investments, rental income and freelance work move you to Premier or Self-Employed at $99.99 and $109.99.
How much is TaxAct's Xpert Assist?
The file-your-own page shows two figures: $45.00 in the comparison table and $60 in the FAQ. Both describe unlimited live tax advice from experts. Because the page conflicts with itself, confirm the price at checkout before adding it, and note it works with Free, Deluxe, Premier and Self-Employed.
Does TaxAct use AI to prepare returns?
The pages we read name no AI feature, neither a form import nor an assistant. TaxAct offers expert help through Xpert Assist instead. If AI reading of W-2s matters to you, compare OLT.com, which describes an AI import on its homepage.
What is the TaxAct $100k Accuracy Guarantee?
It is a guarantee that applies to self-prepared individual 1040 products, with conditions stated by TaxAct. The pages we read give the headline amount but not the claim process. It does not cover business returns, so partnerships and corporations filed through TaxAct fall outside it.
Which TaxAct tier fits a freelancer?
Self-Employed at $109.99 plus state fee covers contract, freelance and rideshare income and includes everything in Premier. A freelancer with only a few expenses and no investments could still compare it with 1040.com at a flat $34.99 or OLT.com's Schedule C support.