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- Dependable service for individuals and the self-employed
- Excellent for those on a budget
TaxAct is another longtime provider of online tax preparation services. Since the late 1990s, the company has made a name for itself as an affordable alternative to other products. The price to prepare and file a federal tax return normally ranges from $14.95 to $69.95 for editions from Basic to Premium, with an additional fee for a state return. (Rates are currently discounted by 20 percent: See links below.)
Those filing a simple 1040EZ can use TaxAct’s free service for federal returns, but there is a $13.60 charge for a state tax return. TaxAct offers editions to fit differing tax situations: the TaxAct Basic Edition, for filers with dependents, retirement income, or college expenses; the TaxAct Plus Edition, for homeowners, itemizers and filers with investments; the TaxAct Freelancer Edition, for independent contractors and self-employed filers; and the TaxAct Premium Edition, a comprehensive package with audit defense.
Although TaxAct is comparatively no-frills — you won’t find a 1040 smartphone app here — the service is a solid choice. It offers a $100k Accuracy Guarantee that promises accuracy and pledges to get customers the biggest refund possible. The website will provide seven years of access to your return as well as technical phone support with its paid service.