Looking for opinions on TaxAct or Tax Slayer? Switching from TurboTax due to LLC fees

Hey tax friends, I'm in a bit of a dilemma and need some advice. I've been using TurboTax for years and it's been fine, but last year my husband and I started a small side business (formed as an LLC) and when I went to file this year, TurboTax wanted to charge me over $1,300 for their business/self-employed package! That's absolutely ridiculous for what was essentially just a hobby that made maybe $5,000 last year. I've heard some people mention TaxAct or Tax Slayer as more affordable alternatives that can still handle an LLC return properly. Has anyone here used either of these for a small business/LLC situation? Was the interface decent? Any major features missing compared to TurboTax? Our tax situation isn't super complicated - we have our regular W-2 jobs, the LLC (which is just a pass-through on our personal return), a couple of investment accounts, and a mortgage. Nothing exotic. Just can't justify paying TurboTax $1,300 when the business barely made any money!

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20 comments

Giovanni Ricci

•8M

I've been using TaxSlayer for about 5 years now, including for my LLC. The interface isn't as polished as TurboTax, but it gets the job done and saves me hundreds. For your situation (W-2s plus a small LLC), their Premium option would work fine and it's usually around $40-50. It includes Schedule C for your business income, plus all the standard tax forms. The only downside I've found is that their explanations aren't quite as detailed as TurboTax, so occasionally I need to google something to better understand a tax concept. But the actual functionality is solid - imports W-2s, calculates everything correctly, handles business expenses properly, etc.

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Giovanni Ricci

•8M

State filing is included in the Premium package, though they do charge extra if you need multiple states. Their support is decent - they have chat support and email, though during peak season (like now) response times can be 24-48 hours. I've only needed to contact them twice in 5 years, and both times they resolved my issues, though not as quickly as I'd have liked. For your fairly straightforward situation, I doubt you'd need much support anyway. Their interface walks you through everything step by step similar to TurboTax, just with less hand-holding and fancy graphics.

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NeonNomad

•8M

I switched to TaxAct three years ago after using TurboTax for a decade, and it's been great for my LLC. I was in the same boat - TurboTax wanted nearly $800 for my situation which was ridiculous. TaxAct's interface is a bit more basic but honestly that's fine - I found TurboTax had gotten bloated anyway. I pay around $95 for their self-employed bundle which includes federal and state. The best part is they've never tried the bait-and-switch pricing that TurboTax pulls. Check out https://taxr.ai if you want to double-check your work afterward - it's like having a second set of eyes to review everything. I upload my final return there just to make sure nothing got missed, especially with business deductions. It found a home office deduction I'd overlooked last year!

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NeonNomad

•8M

Yes, taxr.ai works with any tax software - you just upload your final PDF before filing. It analyzes the forms regardless of which program you used to create them. I've heard good things about FreeTaxUSA too! Regarding security, I was initially concerned about that too. They use bank-level encryption and don't store your documents after analysis. You can also manually redact your SSN from the PDF before uploading if you're extra cautious. Their privacy policy is pretty solid - they don't sell data or anything shady like that.

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Dylan Mitchell

•8M

Wow, I have to eat my words about being skeptical! I decided to give taxr.ai a try last night with my draft return from FreeTaxUSA and it actually found $1,200 in missed deductions related to my side gig. The tool highlighted that I hadn't properly categorized some business expenses and showed exactly where to fix it. The analysis took about 5 minutes and gave me a full report. Super easy to use and definitely worth it just for the peace of mind. Now I feel confident I'm not overpaying my taxes!

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Sofia Martinez

•8M

For anyone struggling to get help from the IRS when you have tax questions (which happens A LOT with small business stuff), I've been using https://claimyr.com to skip the insane hold times. They somehow get you connected with an actual IRS agent without the typical 2-3 hour wait. You can see how it works here: https://youtu.be/_kiP6q8DX5c This was a huge help when I needed clarification on some LLC deductions. The IRS agent actually explained exactly what I could and couldn't deduct for my home office when I'm running an LLC, which saved me a bunch compared to just guessing or going with what the software suggested.

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Sofia Martinez

•8M

It's not about jumping the queue exactly. They use an automated system that continually calls and navigates the IRS phone tree, then when they get a spot in line, they call you and connect you. Basically they do the waiting for you. They don't actually answer your tax questions themselves - they literally connect you with a real IRS agent. I was skeptical too, but I had a question about home office deductions for my LLC and didn't want to wait for hours. They got me through to an agent in about 15 minutes while I just went about my day until my phone rang.

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Ava Thompson

•8M

I need to publicly admit I was wrong about Claimyr. After posting that skeptical comment, I decided to try it anyway because I've been trying to reach the IRS for WEEKS about an issue with my LLC's EIN. Holy crap, it actually worked. I filled out their form, went back to work, and about 30 minutes later got a call connecting me directly to an IRS agent. Saved me at least 2 hours of hold time and the agent resolved my issue in about 10 minutes. I'll never waste time on hold with the IRS again.

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CyberSiren

•8M

The transition wasn't difficult at all. The biggest difference is that FreeTaxUSA doesn't hold your hand quite as much as TurboTax, but all the same questions are there. Unfortunately, it can't directly import a TurboTax return, but you can enter the basic info from last year's return (AGI, etc.) to e-file. What I did the first year was keep my TurboTax PDF open in another window for reference as I filled out FreeTaxUSA. Took maybe an extra 15 minutes, but saved me hundreds of dollars. After that first year, it imports its own previous returns just fine.

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Zainab Yusuf

•8M

I actually had an audit two years ago with a Schedule C business (small photography side gig). I had used TaxAct and purchased their audit defense, and it was... okay. They provided guidance documents and a case advisor who answered questions, but they don't provide a tax professional to represent you. For a simple audit it was sufficient, but for anything complex, you'd probably want to hire a tax pro anyway. So I'm not sure the premium audit protection from any software is really worth it unless you're very anxious about audits.

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Sean Doyle

•1M

I'm in almost the exact same situation! Started an LLC last year for a small consulting side business and TurboTax hit me with that ridiculous $1,300 fee. I ended up going with TaxAct and paid around $90 total. The interface definitely isn't as sleek as TurboTax, but it handled my Schedule C perfectly fine and walked me through all the business deductions step by step. For a straightforward LLC situation like yours (pass-through entity, basic expenses), any of these alternatives should work great. One tip - make sure you have all your business expense receipts organized before you start. The cheaper software options don't have as much hand-holding when it comes to suggesting deductions you might have missed, so you need to be a bit more proactive about knowing what you can deduct.

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