TaxACT Standard: free for preparing and e-filing federal tax returns
TaxACT Standard Edition is a free tax preparation program from 2nd Story. Available as both a Web-based application and as desktop software, TaxACT Standard provides access to all the common tax forms most people will likely need to file a return. The software is compatible with earlier browsers and operating systems. I did find TaxACT to be lacking the sort of hand-holding one might expect for more complex tax situations.Pricing for TaxACT Standard
Free, including federal e-file. Adding a state tax return costs $13.95, including state e-file. Out the door pricing for 1 federal, 1 state, and e-file: $13.95.
By comparison, TaxACT Ultimate bundles federal and state tax preparation along with extra guidance and help content for $16.95.
Forms Availability in TaxACT Standard
TaxACT Standard provides all common tax forms the most people are likely to encounter. Unlike the free versions of TurboTax and TaxCut, TaxACT Standard includes Schedules C (business income), D (capital gains), E (rental and K-1 income), and F (farm income).
Helpful Features in TaxACT Standard
TaxACT Standard provides videos to help explain how to use the software or to explain different tax topics. And like most tax software programs, TaxACT features federal and state refund notifiers at the top right-hand side of the screen.The software also has brief, context-sensitive tax tips located on the right-hand side of each screen to alert you to more detailed information about a particular topic. This looks like extra help, but they are marketing teasers for the content found in the Deluxe (paid) version of the program.
Below that is a link to the official IRS instructions. This is not teaser material. For example, on the screen asking about interest and dividends, clicking on the link for IRS Form Instructions brings the IRS' instructions for Schedule B, which is the form for reporting this type of income.
TaxACT has "mini-alerts" at various points in the tax interview process and an error checking review utility at the end of the interview to identify common tax preparation mistakes.
Drawbacks to TaxACT Standard
This year I am especially concerned about how people will be reporting foreclosures and canceled mortgage debt. TaxACT Standard provided an overview of which forms needed to be filed and explained where to find them in the software. But the interview questions and worksheets did not provide any extra guidance or hand-holding. The free version of TurboTax, by comparison, asks better questions and guides the user through reporting the foreclosure with fuller explanations.Browser and Operating System Compatibility
The online version of TaxACT Standard is compatible with the following browsers: Internet Explorer 5.5+, Firefox 1.5+, Netscape 7.0+, Opera 9.0+, AOL 8.0+, and Safari 2.0.2+.Their tutorial videos requires Adobe Flash 9.
The desktop version of TaxACT Standard is compatible with the following operating systems: Windows 98, Me, 2000, XP, and Vista.
How to obtain TaxACT Standard
