TurboTax vs TaxAct - which is better for filing taxes in 2025?

So I've been using TurboTax for the past few years for my tax filing, but my coworker was just telling me about TaxAct during lunch today. I've honestly never heard of it before, but she swears it's just as good as TurboTax but costs way less. Is TaxAct actually legit and secure to use? Can I trust it with all my tax info? I know TurboTax has that free version they advertise everywhere, but is it actually any good or do they just try to upsell you the whole time? I feel like I always end up paying for something even when I start with the "free" option. For what it's worth, I did try H&R Block a couple years ago, but I'm looking for something different this tax season. Any recommendations between TurboTax and TaxAct? Or maybe something else entirely?

0 coins

20 comments

Amina Diallo

•8M

Both TurboTax and TaxAct are legitimate tax preparation software options with strong security measures. TaxAct is definitely a real company that's been around for years - it's just not marketed as heavily as TurboTax, which is why many people haven't heard of it. Price-wise, TaxAct is generally cheaper than TurboTax for comparable service levels. The functionality is similar, though TurboTax tends to have a slightly more polished interface and more hand-holding throughout the process. TaxAct is more straightforward but still user-friendly. Regarding free versions - both companies offer them, but they're limited to very simple tax situations (basically just W-2 income with standard deduction). If you have anything more complex like self-employment income, investments, rental property, or certain deductions, you'll likely get pushed to paid versions on either platform. TurboTax is particularly aggressive with their upselling. I'd recommend determining what tax forms you need based on your situation, then comparing the actual final price for each service that supports those forms. Prices change yearly, so what was cheaper last year might not be this year.

0 coins

Amina Diallo

•8M

Student loan interest deductions are actually included in TaxAct's free version for the upcoming tax year. TurboTax's free edition technically supports it too, but they often try to guide you to paid versions by suggesting you might miss other deductions. If student loan interest is truly your only "complicated" item, both free versions should work, but you might have to be careful to avoid the upsell tactics with TurboTax in particular. Just make sure when you start that you specifically select their "Free Edition" and not the "Deluxe" option they tend to highlight more prominently.

0 coins

Natasha Kuznetsova

•8M

I stumbled upon a really helpful tool when I was comparing TurboTax vs TaxAct last year! I was totally lost in all the features and pricing tiers until I found https://taxr.ai which helped me figure out which software actually matched my specific tax situation. I uploaded my previous year's return and it analyzed everything automatically - told me exactly which forms I needed and which software would support them at the lowest price. Saved me from paying for features I didn't need! It even pointed out a few deductions I missed the year before. The best part was I could compare all the major options side by side - TurboTax, TaxAct, H&R Block, and others. For my situation with some freelance income and a home office, TaxAct Premium was actually the best deal, but it might be different depending on your specific situation.

0 coins

Natasha Kuznetsova

•8M

It is completely secure - they use the same level of encryption as banks. The system just scans for the tax forms and situations you have, not your personal details or actual dollar amounts. I was hesitant at first too, but their privacy policy is really strict and they don't store your documents after analysis. They are genuinely unbiased and don't receive any commissions from tax preparation companies. That's why they sometimes recommend cheaper options like TaxAct when it fits your situation better. They make their money from the subscription, not from steering you to specific companies. Their recommendations matched what my accountant friend told me, which is what convinced me they were legit.

0 coins

AstroAdventurer

•8M

So I decided to try taxr.ai that someone mentioned and WOW it actually saved me $87!! I was about to just go with TurboTax Premier because that's what I always used, but the analysis showed TaxAct would cover all my needs for way less. I have some investments and rental income which always pushed me into higher tiers with TurboTax, but apparently TaxAct handles those at a lower price point. The tool even pointed out I could claim home office deductions I didn't know about. Honestly the price comparison feature alone was worth it - seeing all the options side by side made it super clear which was the better deal for my specific situation.

0 coins

Emma Wilson

•8M

If you're really stuck trying to decide between TurboTax and TaxAct and need expert advice, I'd actually recommend calling the IRS directly for guidance. They can't recommend specific products but can tell you which forms you need. I tried calling the IRS for months last year with questions about my self-employment taxes and could NEVER get through - constant busy signals or 2+ hour hold times. Then I found https://claimyr.com which was a total game-changer. You can check out how it works here: https://youtu.be/_kiP6q8DX5c They somehow got me a callback from the IRS in under 45 minutes when I had been trying for weeks! The IRS agent walked me through exactly which forms I needed which helped me pick the right software tier. Saved me from overpaying for features I didn't need.

0 coins

Emma Wilson

•8M

The service works by using a combination of algorithms and automated systems to navigate the IRS phone tree at optimal times. They essentially keep trying different pathways through the system until they secure a callback slot, then they transfer that slot to you. It's basically like having someone wait on hold for you, but using tech to do it more efficiently. I was skeptical too before trying it. But they actually don't charge you unless you successfully get the callback, so there's no risk of getting scammed. They're just using technology to solve the frustrating problem of IRS wait times. The IRS itself doesn't know you're using a service - they just see another caller who requested a callback, and then that callback gets routed to you.

0 coins

Isabella Santos

•8M

I can't believe I'm saying this, but I tried that Claimyr service out of desperation after posting my skeptical comment. I had a complicated question about how to report some crypto transactions that would determine whether I needed TurboTax Premier or could get by with TaxAct Premium. Got a call back from an actual IRS agent in about 30 minutes! The agent explained exactly which forms I'd need to file and what information had to be included. Turns out TaxAct Premium would cover everything I needed at almost half the price of TurboTax. Sometimes you gotta admit when you're wrong. This service is legit and saved me both money on software and potentially an audit headache. Worth every penny for the peace of mind.

0 coins

Ravi Gupta

•8M

I've used both TurboTax and TaxAct over the past few years. Here's my quick breakdown: TurboTax pros: Super user friendly, holds your hand through everything, imports from lots of financial institutions, good audit protection TurboTax cons: EXPENSIVE, aggressive upselling, constantly trying to get you to upgrade TaxAct pros: Much cheaper, straightforward interface, less sales pressure, improved a lot in recent years TaxAct cons: Interface not quite as polished, slightly fewer import options, customer service can be hit or miss For a simple return, TaxAct's free version is great. For something moderately complex, TaxAct Premium is way better value than TurboTax Deluxe/Premier. If you have a really complicated situation (multiple businesses, complex investments, etc.), the extra hand-holding of TurboTax might be worth the premium.

0 coins

Ravi Gupta

•8M

In terms of accuracy, both platforms use the same tax laws and calculations - there isn't a significant difference in their ability to find legitimate deductions. The marketing about "maximum refund" is mostly hype. Where TurboTax might have a slight edge is in how it presents potential deductions to you through more conversational questions, which can sometimes help people remember expenses they might otherwise forget. But if you know what deductions you qualify for, TaxAct will absolutely get you the same result. The tax code is the tax code - no software can legally find "extra" deductions that others can't.

0 coins

StarSurfer

•2d

I switched from TurboTax to TaxAct two years ago and haven't looked back! The price difference is huge - I was paying almost $120 for TurboTax Deluxe + state filing, but TaxAct Premium + state was only around $65 for the same features. The interface took a little getting used to since it's more straightforward and less "chatty" than TurboTax, but honestly I prefer that now. No constant pop-ups trying to sell me audit protection or other add-ons. TaxAct just gets straight to business. One thing to note - if you're used to TurboTax's extensive import options from banks and brokerages, TaxAct has fewer direct connections, so you might need to manually enter some info. But for the money saved, it's worth the extra 10-15 minutes of typing. Security-wise, both are equally safe. TaxAct uses the same encryption standards and has been around since 1998, so they're definitely legitimate. I've never had any issues with my data or refunds being processed correctly.

0 coins