Finding a financial advisor doesn’t have to be hard. But if you want help minimizing your tax liability, you can consider hiring a financial advisor who specializes in taxes. If you’re precise with numbers and good at record-keeping, you’re probably fine using tax preparation software.If you qualify for TurboTax’s completely free filing option, that might be the best of both worlds. On the other hand, TaxAct can be a great way to save some money if you’re a savvy e-filer who knows what you’re doing. While TurboTax is more expensive overall, the ease of its process will likely make it the best choice for taxpayers who have a lot of questions about their taxes and would benefit from the guidance. Here’s how much each service level costs when adding expert help: Service Levelīoth TaxAct and TurboTax are solid e-filing options. Here’s a cost breakdown of the different services that TaxAct and TurboTax offer: Service Level They also both offer maximum refund guarantees and have mobile apps. Then, both companies offer a product for self-employed filers, designed to assist freelancers, independent contractors and gig workers with their returns.īoth offer audit support in the event of an IRS audit. Above that option is the Premier plan, intended for filers with investments, such as stocks or real estate. The next step up is the Deluxe plan, intended for families with more complex deductions and credits. For budget-conscious filers, that might edge TurboTax out of the running.īoth companies have a very similar structure - a basic or free plan that allows filers with simple tax situations to file their federal return for $0 (TaxAct charges $39.95 for state returns). You’ll save $93.15 using TaxAct’s self-employed option with expert help rather than TurboTax’s equivalent product. Other than TurboTax’s completely free option, TaxAct is significantly less expensive across the board. The real downside of TurboTax is simply that it costs more. Free option. If you have a tax return with only W-2 income, no Schedule B interest or dividends, and take the standard deduction rather than itemizing, you may be able to file both your federal and state taxes for $0.While TaxAct allows you to import prior returns or W-2s, it’s not set up to easily connect with QuickBooks (which is also owned by Intuit, like TurboTax) or import information from an Uber account. TurboTax makes it easy to import not just tax information such as W-2s and prior returns, but data from QuickBooks and other services, like Uber. While this might seem like extra steps for those who have a solid understanding of their taxes, for many this can be extremely helpful and offer peace of mind that you’re making the right tax decision. If you’re not sure about something, TurboTax often has a simple questionnaire to help guide you to the right choice. TurboTax’s software takes a lot of guesswork out of the process of filing your taxes. Let’s take a look at the positives and negatives of their products. TurboTax is one of the most popular e-filing options, with a streamlined interface that makes filing easy. TaxAct doesn’t provide many explanations or a guided experience, so it might not be as well-suited for those who have never filed their own taxes before. Less hand-holding throughout the e-filing process might be a positive for taxpayers who already know the basics, but others may need more guidance.
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