TaxAct For The Web

Several years ago at tax time, I visited the IRS website prior to filling out my taxes. The website had a questionnaire that you could fill out, which would assist you in finding a free tax filing service. This piqued my interest, so I filled out the questionnaire and ended up at TaxActOnline.com. The rest, as they say, is history.

TaxActOnline is the web version of TaxAct, which can be purchased at your local buy-anything electronics store (in other words, Best Buy or Circuit City). However, you can save yourself some money by simply using the web based version. What I discovered about my return was that the federal return was free, but the State return required a purchase. They allow you to make your purchase at the very end of the process, on a secure site. If my memory serves me correctly, I have been paying approximately $9.95 every year for my tax returns, but there may have been another five dollars either added to the cost, or added as a fee. I am certain that I have not paid more than Fifteen dollars total for both returns. I have been using TaxActOnline ever since (approximately four years).

The process for entering your information at TaxAct Online is fairly simple. It is a question and answer format, with prompts that walk you through each stage of the form. You begin by entering biographical information, to include Social Security Numbers (for those of you afraid of providing any information on-line). The information that goes on your written tax returns is stored at TaxAct, so all of this information is required as you fill out the forms. The program will inquire about specific categories that allow for deductions or credits, and then advise you of what forms need to be included to get those credits (in most cases, providing the forms for you). You can skip around the form if you are lacking information but want to get a head start on your returns. For instance, my mortgage form always seems to be the last document I get. That's a pretty heft deduction, so we can't leave that out. I will normally have my format complete and go back and add that prior to filing. You can save your progress and "quit" the form without losing the data you have already entered. Once you have completed the Federal Form, the program will run a diagnostic test to determine if there are any areas where an error may have occurred. Once this is completed, you will be asked if you want to complete the State return for a fee.

There is a very simple advantage to completing your State returns with TaxAct Online. You can pull all of the required information (to include your biographical information) off of the Federal Return, and apply it to the State Return. Once you agree to complete a State Tax Return (if that is your option), you will be asked which state you are filing with. The database will determine any deductions or credits that are unique to your home State (such as Energy Credits, National Guard Credits or Disability Credits). The State Return will also provide a series of prompts to determine which deductions you qualify for. The nice thing about these prompts is that you don't have to go researching the individual requirements or cap amounts...the program will ask you if you reached a certain level in a particular type of spending and then tell you if you qualify.

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