TaxACT Free Edition 2010

Discontinued
Reviewed
February 2011
TaxACT Free Edition 2010

Pros
  • Free preparation and e-filing for federal returns
  • Includes all electronic federal tax forms
  • Inexpensive state e-filing
  • Open to anyone, regardless of income
Cons
  • Little guidance for complex tax topics
  • Mac users must use online version
Where to Buy
 
 

March 2012: A new version of this software is available. Please see our review of TaxACT Free Edition 2011 (Free).

February 2011: The IRS Free File program is still restricted to taxpayers with adjusted gross incomes of $58,000 or less, but major software companies offer free, basic versions of their tax preparation software to everyone, regardless of income. TaxACT Free Edition is the most robust of these, reviews say. It includes every e-fileable federal form, whereas free versions of TurboTax and H&R Block At Home omit certain forms. Free programs usually include free federal e-filing, but TaxACT charges just $15 for state e-filing (free versions of TurboTax and H&R Block At Home both charge $28). However, if you plan to use the software for your state return, reviews say you're better off getting the more full-featured TaxACT Online Ultimate 2010 (Discontinued), which includes free state e-file. Note that Mac users can only use TaxACT Free Edition online; a downloadable free version is available for your desktop, but it's Windows-only. If you have a complex tax return and need extra guidance, reviews recommend stepping up to TurboTax Deluxe 2010 (Discontinued) or Premier 2010 (Discontinued).

The only expert source we found that goes into depth about free tax-prep programs is About.com's guide to taxes, a seasoned tax professional who tests and rates TaxACT Free Edition and 17 other companies' free offerings. Users rate TaxACT's 2010 Free Edition at Download.com. Experts at PCMag.com and CNET test paid versions of TaxACT, but they also praise the free version. User reviews at Download.com are also helpful.

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TaxACT 2011 Free Federal Edition [Download]
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TurboTax Deluxe Federal + e-File + State 2010 - [Old Version]
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TurboTax Premier Federal + e-File + State 2010 [Download] [OLD VERSION]
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Our Sources

1. About.com

About.com's guide to tax planning, William Perez, tests the IRS Free File version of TaxACT alongside 17 other free-file programs. TaxACT gets the highest score, a perfect 5 stars. The program breaks data entry into a lot of different screens and has nag screens urging an upgrade to a paid version, which slows things down, but it's also one of only two free-file programs to catch a typo in a W-2 entry. (Note: ConsumerSearch is owned by About.com, but the two don't share an editorial affiliation.)

Review: TaxACT Free File, William Perez

2. Download.com

About 40 users have reported on TaxACT's 2010 Free Edition at CNET, giving it an overall rating of 3.5 stars out of 5. A few users add brief comments; overall, users say they like that it's free and that it works.

Review: TaxACT 2010 Free Federal Edition 2010, Contributors to Download.com

3. PCMag.com

Kathy Yakal picks TurboTax as the best overall tax software, but she says she uses the cheaper TaxACT software herself. She says TaxACT's Free Edition is suitable for "expert tax filers like me."

Review: TaxACT Online Ultimate Bundle (2010), Kathy Yakal, Jan. 28, 2011

4. CNET

This review is for TaxACT Deluxe, but Jasmine France points out that TaxACT's Free Edition "is suitable for users with very basic e-filing needs." She also points out that you can start your return for free and upgrade to the deluxe edition if you decide you need it.

Review: TaxACT Deluxe Edition, Jasmine France, Feb. 4, 2011

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