We test drove TaxAct for Business by filing taxes with its software so we could bring you our take for tax season.
Best for complex tax returns
Data as of 12/7/22. Offers and availability may vary by location and are subject to change.
Dec 07, 2022 8 min readWe are committed to sharing unbiased reviews. Some of the links on our site are from our partners who compensate us. Read our editorial guidelines and advertising disclosure .
The bottom line: TaxAct for Business offers the most bang for your buck out of any tax software. It offers an easy-to-follow user experience with fairly inexpensive plan options. Plus, with over 150 federal tax forms and schedules and more than 45 state forms, TaxAct ensures you’ll have everything you need to file at your fingertips.
But TaxAct’s prices go up throughout tax season, it’s not available in every state, and at times its tax prompts veer into tax code jargon.
Tax season is tough, and if you’re a small-business owner, you don’t want to waste time or money on tax preparation. That’s why we did a test drive of TaxAct for Business, including filing taxes using the system, to help you find the best online tax preparer for your business.
TaxAct for Business 2023 review table of contents
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There are six TaxAct plans for business owners from self-employed contractors to companies with shareholders to tax-exempt nonprofits. TaxAct’s prices can reach $179.90 for federal filing plus filing in one state. But if your business wants an easy way to file, TaxAct guides you through the process and completes an e-file at the end so you don’t have to worry about mailing anything in to the IRS.
Data as of 12/7/22. Offers and availability may vary by location and are subject to change.
TaxAct’s prices are fairly high for online tax software, especially when FreeTaxUSA offers a Self-Employed plan for freelancers, small businesses, and contractors for free (with a $14.99 per state file fee).
But we think TaxAct is worth it if you’re going to take advantage of its main features: multiple federal and state forms and schedules available for complex businesses plus an intuitive user interface that guides you through tax filing.
Unfortunately, TaxAct, like many other online providers, increases their plan prices as the tax filing deadline nears. We found that TaxAct for Business prices increased by $30 for Sole Proprietors and $15 for Self Employed individuals, Partnerships, C Corporations, and S Corporations between February 26, 2022 and March 4, 2022. 1,2,3,4 (Tax-Exempt Organizations did not have any price changes.)
Filing your state tax return also increased by $10 for every plan—from $44.95 to $54.95.
File your taxes early!TaxAct offers early filer prices that expired on February 28, 2022. If you plan to use TaxAct in 2023, you should file before the end of February to save up to $35.
If you need more than a single tax form—such as a 1040, 1065, 1120, or a 990—to file business taxes, then your business should benefit from TaxAct’s 150+ federal tax forms and schedules.
Honestly, TaxAct is fairly pricey compared to its competitors on the state filing front. But we think that TaxAct is still a worthwhile investment for businesses that would require add-ons or paid support from other platforms.
Additionally, TaxAct, offers unlimited free support, step-by-step guidance, and (some) accounting record imports. The extra assistance should come in handy for more complex businesses with unique tax-filing needs.
Data as of 12/7/22. Offers and availability may vary by location and are subject to change.
* With coupon code 25OFF
In terms of federal taxes, TaxAct is one of the cheapest tax preparation software options on the market. However, its state filing cost is the most expensive of any brand.
The main benefit of online tax preparation software is that it’s a lot easier than trying to fill out IRS forms by yourself. TaxAct simplifies tax filing even further with its easy-to-follow prompts that guide you through tax preparation in a clean user-friendly interface.
We did a sample tax return with TaxAct for Business as a corporation filing a Form 1120. Thanks to the software’s guiding prompts, we found it to be a really easy process.
TaxAct requires basic information to begin processing your return, including your company’s name, address, phone number, incorporation date, and employer identification number.
From there, TaxAct offers to import accounting records from QuickBooks, Sage, Wave, Xero, and some other software. TaxAct uses CSV files to import data and make tax preparation a breeze. The software helps you cover all your bases from special filings to additional information in a Schedule K.
The federal tax return, which is the main section of your yearly tax return, focuses on taxable income, tax, payments and credits, and any penalties your business may have incurred in the past year. TaxAct guides you through this process and ensures that you have all the forms and schedules needed based on your answers to “Yes” or “No” questions.
Unlike IRS forms, which can be hard to decipher, TaxAct’s user interface is encouraging and straightforward with information organized in a neat, concise way.
One thing we love about TaxAct for Business is the summary page it provides at the end. This page shows you all the information you’ve entered so you can ensure it’s correct and see what you owe. (Note: We did not enter any information when doing our sample tax return, which is why we have $0 in every category.)
TaxAct also lets you choose what to do next: review and update any sections, preview IRS Form 1120, or continue to state filing. We really like that the software gives you options instead of just pushing you through its system.
TaxAct’s state returns are super straightforward since they tend to use information from your federal tax return. TaxAct “automatically transfers data to your state forms” and all you have to do is answer a couple of questions and then you’re all done. It’s as easy as that.
However, TaxAct only offers 46 states out of 50 for Form 1120. You can’t file everywhere.
