TaxAct

TaxAct Business helps businesses prepare, file, and manage federal and state taxes.

Updated February 27, 2026

By James Han · How we review

TaxAct Overview

TaxAct is a tax preparation software designed to make filing easier for both individuals and businesses. It provides step-by-step guidance, accurate calculations, and built-in error checks to help users avoid costly mistakes.

With options for federal and state returns, it also supports small business owners, freelancers, and corporations. Its user-friendly platform, affordability, and reliable support make it a practical choice for efficient tax management.

TaxAct Pros and Cons

Pros

Competitor Pros of TaxAct
TurboTax TaxAct is generally more affordable than TurboTax, which makes it appealing to individuals and small businesses that want to save money. Its pricing is straightforward, and it covers most forms needed by self-employed professionals and business owners. While TurboTax has more guidance tools, TaxAct still provides step-by-step instructions that give users confidence without the higher cost.
H&R Block Compared to H&R Block, TaxAct is simpler and less expensive, which attracts users who want to handle their taxes without paying for extras. Its online platform is easy to navigate, and it includes helpful features like data import and error checking. For many users, it offers all the essential tools without the need to pay for in-person services.
TaxSlayer TaxAct has a stronger reputation for accuracy and error detection compared to TaxSlayer. It also provides a wider range of forms for both individuals and businesses, which makes it a more versatile choice. TaxAct’s Xpert Assist option adds extra peace of mind that TaxSlayer does not fully match.
FreeTaxUSA TaxAct provides more comprehensive coverage than FreeTaxUSA, especially for business tax forms and professional features. It has stronger audit support and a more secure platform, which builds trust with users handling sensitive financial data. For those who want a balance between affordability and functionality, TaxAct offers more depth than FreeTaxUSA.

Cons

Competitor Cons of TaxAct
TurboTax TurboTax offers a more polished user experience, which includes highly detailed explanations and a smoother step-by-step process. It also has stronger live support options that feel more personal. TaxAct’s interface is helpful but less intuitive, which can make TurboTax a better fit for beginners.
H&R Block H&R Block provides in-person support through its nationwide offices, which is something TaxAct does not offer. For users who want face-to-face help, TaxAct cannot match the accessibility and reassurance of H&R Block’s physical presence.
TaxSlayer TaxSlayer is often cheaper for very simple tax returns, which makes it attractive to budget-focused users who only need basic filing tools. In this area, TaxAct may feel more expensive without providing extra value to those with very straightforward returns.
FreeTaxUSA FreeTaxUSA is often lower in cost for basic returns, which appeals to individuals with simple tax needs. TaxAct, while still affordable, may feel less competitive when compared strictly on price for basic filing.

Key Features

  • Step-by-step guidance: TaxAct walks users through the tax filing process with clear instructions that help avoid confusion.
  • Error checking tools: The software reviews entries and flags mistakes or missing details, which reduces the risk of filing incorrect returns.
  • Federal and state tax support: It allows preparation and filing of both federal and state returns, which makes it suitable for individuals and businesses.
  • Business return options: TaxAct supports a wide range of business forms, including 1065, 1120, 1120-S, 1041, and 990, which makes it useful for different business structures.
  • Affordable pricing: Compared to many competitors, TaxAct is known for lower costs while still offering robust features.
  • Xpert Assist option: Users can get live help from tax professionals for guidance, which adds confidence during filing.
  • Data import and storage: Prior-year returns and W-2s can be imported, which saves time and ensures accuracy.
  • Audit support: The tool offers audit assistance resources that help users prepare if the IRS reviews their return.
  • Mobile and online access: Returns can be prepared on different devices, which adds flexibility and convenience.
  • Secure data protection: TaxAct uses encryption and strong security practices, which protect sensitive financial information.

Pricing

Plan Type Price (Online) Key Inclusions
Sole Proprietor $109.99 Prepares Form 1040 Schedule C/F; includes Xpert Assist available (extra cost)
Tax-Exempt Orgs (Form 990) $129.99 Prepares Form 990 (plus state returns extra)
Partnerships (Form 1065) $149.99 + State Additional Prepares Form 1065; bundle & download options
S Corporations (Form 1120-S) $164.99 + State Additional Prepares Form 1120-S; guidance included
C Corporations (Form 1120) $164.99 + State Additional Prepares Form 1120; guidance included
Estates & Trusts (Form 1041) $139.99 + State Additional Prepares Form 1041 returns

Pricing link: https://www.taxact.com/lp/business-returns/online

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