TaxAct vs FreeTaxUSA
TaxAct and FreeTaxUSA 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 | 8.4/10 | 8.6/10 |
| Starting Price | $34.99 | $7.99 |
| User Reviews | ||
| Filing Options | ||
| Free Filing | Federal only | All federal returns |
| State Returns | $39.99 each | $14.99 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
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
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
Key Difference
The core difference lies in approach: TaxAct focuses on significantly cheaper than competitors, while FreeTaxUSA emphasizes free federal for all situations. Both philosophies have merit depending on your priorities.
Which Should You Choose?
TaxAct
Choose TaxAct if you prioritize significantly cheaper than competitors, want to start with a free tier, or value covers complex tax situations.
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.
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. FreeTaxUSA also offers better value at its price point. 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 TaxAct better than FreeTaxUSA?
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, TaxAct or FreeTaxUSA?
FreeTaxUSA is more affordable at $0.00/mo vs $0.00/mo. FreeTaxUSA offers NaN% savings.
TaxAct vs FreeTaxUSA: which should I choose?
Choose TaxAct if you prioritize significantly cheaper than competitors. Choose FreeTaxUSA if you need free federal for all situations. Both are solid tax software options.
What's the main difference between TaxAct and FreeTaxUSA?
The main difference is TaxAct offers budget-friendly tax filing with expert support, while FreeTaxUSA focuses on truly free federal filing, $14.99 state.