Filing taxes can be a stressful and daunting task, but with the help of tax software, it doesn't have to be. Two popular options on the market are TaxAct and TurboTax. While TaxAct vs TurboTax both offer similar services, there are key differences between the two that may sway your decision one way or another.
In this comprehensive comparison, we'll break down those differences in pricing, ease of use, customer service and more so you can make an informed choice on which tax software is right for you. So let's dive into the world of TaxAct vs TurboTax!
TaxAct Overview
TaxAct is a tax preparation software that has been around since 1998. It was designed to help people of all backgrounds file their taxes quickly and accurately. With TaxAct, you can prepare and e-file your federal and state taxes from the comfort of your own home.
One key advantage of TaxAct is its affordable pricing. It offers three different packages ranging from free to $79.95 for self-employed individuals, making it an attractive option for those on a budget.
Another factor that sets TaxAct apart is its focus on simplicity and user-friendliness. Its interface is straightforward and easy to navigate, with helpful tools such as the Deduction Maximizer which helps users identify potential deductions they may have missed.
In addition, TaxAct also provides various resources like instructional videos, articles and live chat support so you can have peace of mind while filing your taxes.
TaxAct strives to make tax preparation accessible for everyone by offering affordable pricing options without sacrificing quality or features.
TurboTax Overview
TurboTax is a tax preparation software that has been around since the mid-1980s. It has grown to become one of the most popular tax software options on the market, with over 30 million users.
One of TurboTax's key features is its user-friendly interface. The software guides users through each step of their tax return and offers helpful tips along the way. Additionally, it allows users to upload their W-2 forms by simply taking a picture with their smartphone.
TurboTax also offers a range of plans for different types of taxpayers, including those who are self-employed or have investments. Each plan includes access to live customer support via chat or phone.
Another advantage of using TurboTax is its accuracy guarantee, which promises that if there are any errors on your tax return due to TurboTax's calculations, they will pay any resulting penalties and interest fees.
TurboTax provides an easy-to-use platform that caters to various levels of complexity in terms of individual taxes while ensuring high accuracy rates at affordable pricing points.
Differentiating Factors
When it comes to choosing between TaxAct vs TurboTax, there are some key differentiating factors that can help you make an informed decision.
One major factor is the level of service offered by each platform. While both offer self-service options, TurboTax also offers live support from tax professionals via chat or phone for an additional cost. TaxAct, on the other hand, offers free email support and phone support for paid users only.
Another factor to consider is the range of features available in each software. TurboTax tends to have more advanced features geared towards those with complex financial situations such as business owners or investors. However, TaxAct still has a comprehensive set of tools including audit protection and a deduction maximizer.
Pricing may also be a significant differentiator between the two platforms. While both offer free versions for simple tax returns, TaxAct generally has lower prices for its paid versions compared to TurboTax.
Ultimately, deciding between TaxAct vs TurboTax will depend on your individual needs as well as your budget. It's important to carefully consider all factors before making your choice so that you can choose the best option for your particular situation.
Pricing Comparison
When it comes to choosing tax software, price is often a major deciding factor. TaxAct and TurboTax have different pricing structures that may appeal to different types of users.
TaxAct offers three tiers of pricing: Free, Deluxe+, and Premier+. The Free version includes federal filing for simple returns, but state filing costs extra. The Deluxe+ version adds more support options and additional tools for self-employed individuals starting at $54.95. The Premier+ version includes investment reporting features starting at $79.95.
TurboTax also has three tiers of pricing: Free Edition, Deluxe Edition, and Premier Edition. The Free edition only covers basic forms such as 1040EZ or 1040A while the Deluxe edition is ideal for homeowners with deductions like mortgage interest up to $100k in value starting at $59.99.
The Premier edition adds investment-related features such as guidance on stocks or bonds starting at a cost of $79.99 which could be helpful if you're looking into investing this year.
Both TaxAct and TurboTax offer affordable plans with varying levels of service depending on your needs - so pick what fits your budget best!
Ease of Use Comparison
When it comes to tax software, ease of use is a crucial factor to consider. TaxAct and TurboTax both offer user-friendly interfaces, but there are some subtle differences that set them apart.
Firstly, TaxAct has a more streamlined design with fewer bells and whistles than TurboTax. This can make it easier for users who want a simple interface without too many distractions. On the other hand, TurboTax offers more guidance throughout the process, which could be helpful for those who are less familiar with taxes.
Another key difference is in how the two programs handle importing data from previous years or other sources. Both platforms allow users to import W-2s and 1099s from employers and financial institutions directly into their returns. However, TurboTax goes one step further by offering options like SnapTax that allow users to take photos of their forms instead of typing in information manually.
Whether you choose TaxAct or TurboTax largely depends on your personal preferences and level of comfort with tax software. However, both platforms prioritize making tax preparation as easy as possible for their users.
Customer Service Comparison
When it comes to tax software, getting the help you need when something goes wrong is crucial. Both TaxAct and TurboTax offer customer service options to their users.
TaxAct offers phone support for paid customers, in addition to email support and a comprehensive knowledge base with answers to frequently asked questions. They also have a community forum where users can ask questions and get answers from other TaxAct users.
TurboTax offers phone, chat, and email support for all of its customers. They also have an extensive knowledge base with articles on a wide variety of topics related to taxes. Additionally, they offer access to enrolled agents and certified public accountants (CPAs) who can provide professional advice if needed.
Both TaxAct and TurboTax offer robust customer service options that should meet the needs of most users. However, the availability of CPAs through TurboTax may be particularly appealing for individuals or businesses with more complex tax situations who want personalized assistance from professionals.
Which is the better tax software?
After comparing TaxAct and TurboTax, it's clear that both are top-rated tax software programs with their own unique features. While TurboTax may have a more extensive range of services to offer, TaxAct still holds its ground as a reliable and affordable option for those who want the basics done right.
If you're looking for an easy-to-use program with excellent customer service support, then TurboTax might be the way to go. On the other hand, if you need value for your money and simplicity in filing your taxes, then we recommend choosing TaxAct.
Ultimately, deciding which one is better depends on what you require from a tax software. Both options have their pros and cons but what matters most is selecting one that meets your specific needs.
Conclusion
TaxAct and TurboTax are two of the most popular tax software programs on the market. While they both offer similar services, there are some key differences between the TaxAct vs TurboTax in terms of pricing, ease of use, customer service options, and features. It's important to consider these factors when making your decision so you can choose the one that best meets your individual needs and budget. Ultimately, either TaxAct or TurboTax can help you file your taxes accurately and efficiently.
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