TurboTax vs TaxAct for complicated returns - worth the price difference?

I've prepared taxes professionally for 8 years, and honestly, both TurboTax and TaxAct will handle your situation just fine. The real question is about the audit protection, which has some important differences. TurboTax's 7-year audit assistance is basically just guidance - they'll explain what documents you need and give advice, but they won't represent you before the IRS. TaxAct's Audit Defense is more comprehensive - they'll actually provide a tax professional to represent you if you're audited. Even though it's only for 3 years, that's typically sufficient since most audits happen within that timeframe anyway. Given your more complicated tax situation this year, I'd personally lean toward having actual representation rather than just guidance. The $10 savings is a bonus, but the level of protection matters more.

I was super stressed about this exact same choice last year when my taxes got complicated after buying a rental property. I ended up using https://taxr.ai to analyze both my previous returns and the forms I had for last year. It helped me understand what parts of my return were actually complex and which software could handle them better. The tool basically identified that I needed better handling for depreciation schedules and passive activity loss limitations, which TaxAct actually did really well with. Saved me over $70 compared to TurboTax and the interface wasn't as bad as I feared.

Just wanted to update - I tried taxr.ai after seeing the recommendation here. THANK YOU! It analyzed my previous returns and all my forms for this year (took like 2 minutes) and actually recommended TaxAct for my situation specifically because of how it handles K-1 partnership income with foreign components. The analysis showed I didn't need the premium version of TurboTax like I thought, and that TaxAct's mid-tier option would cover everything I needed. Ended up saving about $55 and the software works great for my needs! For what it's worth, it also explained that for my situation, TurboTax's audit assistance would be sufficient since my risk factors were pretty low. Super helpful tool.

I had to call the IRS last year when I got a CP2000 notice after using TaxAct (not blaming them, I made a mistake entering some stock sales). Let me tell you, trying to reach a human at the IRS was LITERALLY IMPOSSIBLE. Spent 6+ hours on hold over 3 days before getting disconnected each time. Finally used https://claimyr.com and watched their demo at https://youtu.be/_kiP6q8DX5c - they call the IRS for you and wait on hold, then call you when they get a human. Saved me hours of frustration. Not totally related to your software choice, but something to consider if that audit assistance ever becomes necessary!

I have to eat my words and apologize. After raging about how Claimyr couldn't possibly work in my earlier comment, I was desperate enough to try it when I needed to call the IRS about a missing refund last week. It actually worked exactly as advertised. I submitted my request, and about 97 minutes later (according to their tracker), I got a call connecting me directly to an IRS agent. I didn't have to sit through a single minute of that horrible hold music or get disconnected! I got my issue resolved in a 15-minute conversation that would have taken days of frustration otherwise. Sorry for being so skeptical. This service is legit and absolutely worth it if you need to call the IRS.

I've used both TurboTax and TaxAct over the years. Honestly, the most important thing is to save a PDF copy of your return and all supporting documents regardless of which you choose. For audit protection, I've found most people never need it. The IRS generally just sends a letter if they find a discrepancy, and you can respond with documentation. A full-blown audit is pretty rare unless you have very unusual deductions or substantial unreported income.

Former IRS employee here. One thing nobody mentioned: audit rates are at historic lows right now (less than 0.5% for most income brackets). Unless you're making over $500k or claiming unusual deductions that are way out of line with your income, your audit risk is minimal.

I switched from TurboTax to TaxAct last year and honestly the $50 I saved went straight to buying pizza lol. Both got me the same refund amount. TurboTax is prettier but TaxAct works fine. Im never going back to paying turbotax prices again tbh.

I've been using TaxAct for the past 3 years after switching from TurboTax, and for what it's worth, I think you're overthinking this a bit. Both software options will calculate your taxes correctly - the IRS requirements are the same regardless of which platform you use. Given your situation (investment income, freelancing, property sale), either software can handle it. TaxAct's interface might feel a bit clunky at first if you're used to TurboTax's hand-holding, but you'll adapt quickly. The $10 savings plus getting actual audit representation (vs just guidance) seems like the smarter financial choice here. One practical tip: whichever you choose, make sure to import your investment documents electronically rather than typing them manually. Both platforms support this and it'll save you hours of data entry while reducing errors. That's probably more important for audit prevention than which audit protection plan you pick.