TaxAct : Why is it free?

[TooBoyz4us]

I just saw a post regarding Tax Act, and the fact that it is 100% free to use and efile your Federal taxes.

Has anyone used this? Is it really FREE or is there a catch?

I'm wondering why I would use TurboTax or TaxCut, and pay to file, if this is totally free?????

 

[Neelloc]

If you have to file a state return, then you may have to pay an additional fee. I did my taxes and it cost me $16.95 for federal and state. Well worth it. I used TaxAct last year and was very pleased. It walked me through my entire return and asked me a ton of questions. I was able to efile it quickly.

It also saves your data and I was able to import my data from last year so that sped up the process.

I think it is way better than H&R Block Tax Cut which I used to file in 2007. It overestimated my state refund and it held my money up for weeks. I never figured out why it did that. I got a letter from the IRS stating this overage and then when I went on TaxAct to double check my numbers, their calculations matched the IRS amount exactly.

Good luck with whatever you choose!

 

[bettyann29]

Turbotax is also free if you use the basic one...

 

[Neelloc]

Just found this too.....anyone can efile for free on the irs website:

http://www.disboards.com/showthread.php?t=2077228

 

[Ennazus8810]

I have used taxact for the past 3 years for myself and family members. Never had a problem, never paid a fee. The first year I ran it I also used the H&R Block software, and there was no difference. I do not file my state using them, as they require a fee to file state. I do my federal through taxact, and the state through my states website for free.

 

[magik]

I have used Taxact for the past two years for my federal. I also fill out the info for my state, although don't file state through them as there's a fee, but I use it to double check what I fill out on my states free e-file website.

 

[ajk912]

I am thinking about using them, as well. Right now, I have to go back and recrunch numbers but Taxact is giving me back $300ish more than Taxcut is. So I have to see if I took a deduction I shouldn't have, or Taxcut didn't give me one, or what. The only thing I am thinking I don't remember taking on Taxcut is to deduct home real estate taxes. But I went to the IRS website and I could be wrong but it sure seems like I can deduct property taxes on my house.

Taxcut is $45, and Taxact $17, seems like a no brainer to me!!! We'll see after I crunch numbers again...

 

[luvmy3jewels]

I've used TaxAct for the last three years and have never had a problem. It makes filing taxes a lot easier and quicker since the info is saved from year to year. For me, it is definitely worth the 16.95 to file my state and fed taxes!!

I have never spoken to anyone who uses the TaxAct program and wasn't satisfied.

 

[tzolkin]

Just found this too.....anyone can efile for free on the irs website:

http://www.disboards.com/showthread.php?t=2077228

TaxAct is one of the links the IRS site takes you to do file for free.
That's how I found out about it.

 

[Kickapoo Joie Juice]

We've used taxAct for the past few years too. Like it a LOT.

cost us 16.95 to file state and federal, and we added the "save all your info for three years" option for 5.95. Makes it easier to file again next year.

I really like the "look for audit triggers" option in case we mistyped something, and also the one that compares your return to other returns to people who make what you make, and also how it compares to what you did last year-all good ways of catching errors or skipped categories.

 

[Disney*Dreamer]

I have used Tax Act for several years, even beofre it was free. The free part is due to the IRS "The Free File program provides free federal income tax preparation and electronic filing for eligible taxpayers through a partnership between the Internal Revenue Service (IRS) and the Free File Alliance LLC, a group of private sector tax software companies." "Free tax preparation and e-filing if your adjusted gross income is $56,000 or less in 2008."

Check out http://www.irs.gov/efile/article/0,,id=118986,00.html?portlet=6

And here is a list of companies http://www.irs.gov/app/freeFile/jsp/index.jsp?ck

 

[johde]

I've used the free Downloadable Tax Act for several years now. I then file my ohio state taxes for free on their web site.

For the fee you get the ability to bring in last years data saving you lots of typing, e-file of your state return, and the "life event" wizards.

I like the downloadable version because I get to keep my return on my computer.

 

[mountdew1]

We've used taxAct for the past few years too. Like it a LOT.

cost us 16.95 to file state and federal, and we added the "save all your info for three years" option for 5.95. Makes it easier to file again next year.

If you have to file a state return, then you may have to pay an additional fee. I did my taxes and it cost me $16.95 for federal and state. Well worth it. I used TaxAct last year and was very pleased. It walked me through my entire return and asked me a ton of questions. I was able to efile it quickly.

These are why the software is available for free. When the IRS decided to allow for eFiling, the tax prep companies got them to agree to only let the companies do the eFiling, and let them charge cash for it. Yeah, you can usually find a way to file for free if you have a basic file, but when you start adding in Mortgages, college and other expenses, most of the free/basic ones won't handle it all. So you have to pay more. When they develop the expensive version, it has the same functionality as the free one. So they can offer you the basic version for next to nothing hoping to get you to upgrade and make some money. (Be it the insurance, double check, eFile, whatever)

 

[Disney*Dreamer]

These are why the software is available for free. When the IRS decided to allow for eFiling, the tax prep companies got them to agree to only let the companies do the eFiling, and let them charge cash for it. Yeah, you can usually find a way to file for free if you have a basic file, but when you start adding in Mortgages, college and other expenses, most of the free/basic ones won't handle it all. So you have to pay more. When they develop the expensive version, it has the same functionality as the free one. So they can offer you the basic version for next to nothing hoping to get you to upgrade and make some money. (Be it the insurance, double check, eFile, whatever)

I have been free filing for several years, and have always been adding mortgages, medical expenses, and more with no problem and no extra fee. You don't have to do the standard deduction to get it free.

 

[JoanneNC]

Another TaxAct user here and pleased with it

 

[LuckyMamaInDE]

We had a complicated return last year, yet I did the taxes myself using free TaxAct. Our state has free e-file, so I didn't bother using TaxAct for that portion.

I'm waiting for one last form to arrive, then I will use TaxAct for free again

 

[girlsx2]

I used TaxAct this year and was very pleased. I am waiting for my refund now. Has anyone who has already filed gotten their refund yet?? Just curious to see if the "chart" is accuate.