A Frugal Tax Filing Option

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Even with the possibility of a refund dangling in front of us, most of us hate to do our taxes.

Online tax prep and filing services significantly ease the burden without paying personal-accountant-level dollars. But of the many available tax preparation companies, which is the best?

In this review, we’ll cover TaxActone of the lesser-known income-tax filing programs — but a frugal filing option you’ll want to check out.

Here’s what you need to know about TaxAct.

How Does TaxAct Work?

TaxAct offers DIY online tax software that helps you file your tax returns neatly, completely and accurately. Even if you’re a tax whiz, having a guide streamlines the process and could save you time and money. These services scan hundreds of credits and deductions to ensure you get the biggest refund (or lowest tax bill) possible.

Compared with the better-known e-filing products, like H&R Block and TurboTax, TaxAct is pretty scaled down — and thus, more affordable.

Rather than inundating you with options, tools and features, this program is all about getting down to business and getting your taxes done, as quickly and cheaply as possible.

TaxAct offers four pricing tiers based on your tax situation: free, Deluxe, Premier and Self-Employed. Here’s everything you need to know about each (current as of February 2022 and subject to change).

Free

If you’re a “simple filer,” you can take advantage of free preparation for federal and state returns with TaxAct’s basic product.

This tier covers W-2 income; tax breaks for dependent deductions, Earned Income Tax Credit (EITC) and child tax credits, education expenses for current students, and retirement income.

Cost: Free to file a federal return, plus $39.95 per state tax return.

Deluxe

TaxAct Deluxe offers everything you get with the free version as well as coverage for itemized deductions, mortgage interest, real estate taxes, student loan interest, Health Savings Accounts (HSAs) and adoption…

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