FreeTaxUSA vs TaxAct
FreeTaxUSA and TaxAct are both popular options in this category. After extensive testing, FreeTaxUSA leads with a 8.6/10 rating, though the best choice depends on your specific needs.
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Quick Answer
FreeTaxUSA beats TaxAct for most users. It scores 8.6/10 vs 8.4/10 and free federal for all situations. Choose TaxAct if you need significantly cheaper than competitors.
TaxAct
Budget-friendly tax filing with expert support
Starting from
$34.99
Feature Comparison
| Feature | ||
|---|---|---|
| Overall Rating | 8.6/10 | 8.4/10 |
| Starting Price | $7.99 | $34.99 |
| User Reviews | ||
| Filing Options | ||
| Free Filing | All federal returns | Federal only |
| State Returns | $14.99 each | $39.99 each |
| W-2 Import | ||
| Prior Year Import | ||
| Tax Types | ||
| Self-Employment | ||
| Investments | ||
| Rental Income | ||
| Support | ||
| Audit Support | ||
| Live Expert Help | ||
| Mobile App | ||
Pros & Cons Breakdown
FreeTaxUSA
- Free federal for ALL situations
- State returns only $14.99
- Covers complex returns
- No upsells for federal
- Audit assist available
- Import prior year data
- Basic interface
- Less guidance than premium options
- Limited live support
TaxAct
- Significantly cheaper than competitors
- Covers complex tax situations
- Xpert Assist help available
- $100k accuracy guarantee
- Price lock guarantee
- Good for prior year returns
- Interface feels dated
- Slower than TurboTax
- Less hand-holding
Key Difference
The core difference lies in approach: FreeTaxUSA focuses on free federal for all situations, while TaxAct emphasizes significantly cheaper than competitors. Both philosophies have merit depending on your priorities.
Which Should You Choose?
FreeTaxUSA
Choose FreeTaxUSA if you prioritize free federal for all situations, want to start with a free tier, or value state returns only $14.99.
TaxAct
Choose TaxAct if you prioritize significantly cheaper than competitors, want to start with a free tier, or value covers complex tax situations.
Our Verdict
After thorough testing, FreeTaxUSA is our winner with a rating of 8.6/10 compared to TaxAct's 8.4/10. FreeTaxUSA stands out for its free federal for all situations and state returns only $14.99. While TaxAct is more affordable, FreeTaxUSA's advantages justify the price difference for most users. However, TaxAct remains an excellent choice if significantly cheaper than competitors is your priority. There's no universally "wrong" choice here - both are quality options that serve their target audiences well.
Thinking of Switching?
Consider the migration effort before switching. Most services offer data export, but rebuilding workflows and configurations takes time. Evaluate whether the benefits outweigh the switching costs.
Frequently Asked Questions
Is FreeTaxUSA better than TaxAct?
FreeTaxUSA scores higher in our testing (8.6/10 vs 8.4/10). FreeTaxUSA excels at free federal for all situations, while TaxAct is better for significantly cheaper than competitors.
Which is cheaper, FreeTaxUSA or TaxAct?
TaxAct is more affordable at $0.00/mo vs $0.00/mo. TaxAct offers NaN% savings.
FreeTaxUSA vs TaxAct: which should I choose?
Choose FreeTaxUSA if you prioritize free federal for all situations. Choose TaxAct if you need significantly cheaper than competitors. Both are solid tax software options.
What's the main difference between FreeTaxUSA and TaxAct?
The main difference is FreeTaxUSA offers truly free federal filing, $14.99 state, while TaxAct focuses on budget-friendly tax filing with expert support.