Tax Act Online: Totally FREE Tax Return!

"No matter your tax situation - married or single, easy or complex - Tax Act's free federal tax return has you covered. And it's easy!" It really is easy. I've been using taxactonline.com to do my taxes for me since I wrote this article posted on Associated Content in 2007. At that time, I was using Turbo Tax's online tax engine.

Although the software engines for these two products are practically the same, and both easy to use, I strive to give my money only to those companies I feel have high ethical standards. Turbo Tax ripped me off to the tune of just under $100 that year so I have not returned, nor will I ever.

Tax Act Online is the service I chose to replace Turbo Tax, and I've never regretted that decision for a second. They update the software every year to accommodate all new IRS rules and regulations and guide you step by step through the minefield of filing your taxes.

One of the best parts of Tax Act Online is that you can import all the data from your previous year's tax return. You can compare this year's return with last year's to see how dissimilar they are. This helps spot discrepancies the wonderful built-in error checker might miss.

In addition to other upgrades, this year there is a new Deduction Examiner, and if, like me, you bought a house in 2008, there is a thorough explanation of how to get the $7500 tax credit (as well as how to pay it back over time). Best of all, using taxactonline.com, your taxes are "Free to Prepare, Free to Print, and Free to E-file for everyone."

Still, some of us have State income taxes to pay as well, but Tax Act has that covered. You can add a State Return, and for that, unfortunately, we have to pay. But if you compare, you'll find that Tax ACT Online has one of the lowest priced state returns. It costs just $13.95 with free efile!

Another thing I like about Tax Act is that they stay in contact by email throughout the year just enough to let me know they remember I'm still a customer and that they care. If you're a returning customer, the software is designed to make life as easy for you as possible. (By the way, I use the term "software," but you don't have to download anything. You access everything through your computer interface and it automatically saves your data on their servers.)

This year I filed my taxes February 11, and my Federal Refund was direct deposited into my bank account February 27th, right on schedule. I can't say the same for my California State refund, for which I received and IOU. However, after the stimulus money got out there, my refund hit my bank in late March. It could have been worse.

I don't work for Tax Act or any other of the companies I write about here. I'm just another citizen like you, but I don't see why you should have to go through the same steps I did to find out what the best products are.

Don't waste your money going to the store and buying software that is obsolete as soon as you use it. In hard times we have to save every cent, and filing your taxes online is a terrific money saver.