TaxAct Professional Review
TaxAct Professional is low-cost Windows desktop tax preparation software for solo preparers and small firms filing 1040, 1041, 1065, 1120, 1120S and 990 returns, sold as an annual license with published pay-per-return, return-bundle and unlimited prices.
Independently scored, one dimension at a time. Every dimension is sourced, and we say whether a claim is published, reported, or estimated.
All six plans, per-return fees, state edition prices and most add-ons are published, and the retail increase is dated 1 January 2027 (pricing page, checked 10 October 2026). E-file is included in the per-return and bundle prices. The gaps are tax year 2026 e-signature fees, which TaxAct had not posted by 10 October 2026, and bank product fees set by partner banks.
The program downloads and installs on Windows 11, and a free evaluation edition lets a firm test it without e-filing. The built-in converter handles prior-year 1040 files from ProSeries, TaxSlayer Pro and TaxWise only; clients from Drake, Lacerte, UltraTax, ATX, CrossLink and ProConnect come in through a PDF import of basic data (support article, checked 10 October 2026). TaxAct lists no converter for business returns, so 1065 and 1120 clients are set up by hand.
Phone and email support is included in every plan. Off-season hours are weekdays 8 AM to 5 PM Central from 16 April 2026 to 22 January 2027 (support page, checked 10 October 2026), and no live chat is listed, while Drake Tax includes chat. TaxAct reports that 93 percent of its users in the 2025 NATP survey were satisfied or very satisfied; the full results sit behind a form. Trustpilot shows 4.2 out of 5 from 21 reviews, a small sample (checked 10 October 2026).
Federal coverage is 1040, 1040-NR, 1040-SS, 1041, 1065, 1120, 1120S and 990, and pay-per-return plans offer 47 state editions (pricing page, checked 10 October 2026). Forms 706 and 709 do not appear on the product list, and Drake Tax and ProSeries Professional list both. TaxAct's state schedule for tax year 2025 marked the 1041 state edition as not supported in 22 jurisdictions; seven of those levy no individual income tax, and the other 15 include Connecticut, Louisiana, Utah and Wisconsin. Many business state editions carried anticipated release dates in February 2026, for example Alabama 1041 on 16 February.
TaxAct lists return diagnostics, passkey and multi-factor sign-in and encryption in transit and at rest on every plan (pricing page, checked 10 October 2026). Enterprise editions add preparer permissions set by a practice administrator, and every user signs in at startup (setup guide, tax year 2026). No SOC 1 or SOC 2 report and no accuracy guarantee for the Professional product appear on its public pages, and the license leaves return accuracy with the preparer. Connecticut's attorney general settled with TaxAct for $275,000 on 19 August 2026 over tracking tools used from 2018 to 2022; the release does not mention the Professional product.
Unlimited bundles remove return caps, and the multi-user Enterprise license shares files on TaxAct's servers or a local network (setup guide, tax year 2026). The license lets TaxAct move an Enterprise customer to pay-per-return pricing if it judges usage to exceed reasonable professional use (license agreement, updated 8 September 2026). TaxACT was named by 1.8 percent of 1,808 AICPA respondents in the 2026 survey against 14.3 percent for Drake Tax, so references from larger firms are scarce.
The pricing page lists 8949 transaction import, K-1 export from pass-through returns to 1040s and prior-year carryforward, plus PDF import of prior-year returns (checked 10 October 2026). Client Portals, Integrated Payments, Audit Defense and SmartExtract are add-ons powered by sister company Drake Software. No trial balance import, practice management connector or API appears on its public pages, and the license forbids running an API on the software.
SmartExtract (Beta) uses AI to pull W-2, 1098 and 1099 data into 1040 returns, capped at 20 documents per return (support article, checked 10 October 2026). There is no public API and no MCP server for the Professional product; TaxAct's hosted MCP server at mcp.taxact.com offers eight read-only consumer guidance tools and connects to no account. The license agreement updated 8 September 2026 prohibits access through scripts, bots, robotic process automation or AI agents without written authorization.
Unlimited returns for $2,495 a year, with thin integrations and a license that bars AI agents.
Written by the Audit Friendly research team. No vendor edits, no sponsored placement.
You are buying a forms-and-interview Windows program that covers the six main federal return types, state editions and e-file at prices anyone can read. Pay-per-return starts at $169.99 a year plus $29.99 per 1040. Unlimited 1040s cost $1,175 a year for one user, and unlimited individual and business returns for a multi-user office cost $2,495 a year with all states (published, checked 10 October 2026). On the same day Drake Tax Pro listed its multi-user unlimited plan at $3,145, and ProSeries 1040 Essentials listed unlimited 1040s alone at a promotional $2,605 against a $4,007 list price. TaxAct says more than 20,000 tax professionals use the product.
The catch is scope. Forms 706 and 709 are missing from the product list. The built-in converter moves 1040 clients from only three rival packages, and business returns are rebuilt by hand. For tax year 2026, e-signatures need a separate $299.95 Client Portals subscription plus per-signature fees TaxAct has yet to post. Support is phone and email, weekdays 8 AM to 5 PM Central outside filing season. The license agreement, updated 8 September 2026, prohibits scripts, bots and AI agents from touching the software without written authorization, and there is no public API.
Before paying, get four things in writing. First, the in-season support hours and the tax year 2026 e-signature prices. Second, release and e-file dates for each state business edition you file; several arrived in February 2026 last season. Third, the refund terms: a 15 percent fee applies after release, and no refund is paid once a return is started. Fourth, how long TaxAct keeps your online backups if you stop renewing. Buy before 1 January 2027, when the unlimited plans move to retail prices up to $180 higher.
- Solo preparers and new practices filing mostly 1040s who want unlimited returns for $1,175 a year on one seat
- Small firms with a mixed book of individual and business returns that want one flat $2,495 multi-user price with all states
- Seasonal or part-time preparers filing fewer than about 18 returns, the point where $29.99 per 1040 plus the license and one state edition costs more than the $725 Twenty Bundle (Audit Friendly estimate)
- Firms that file estate and gift returns (Forms 706 and 709); Lacerte and ProSeries Professional list both forms
- Firms that want AI agents or scripts to work inside the tax software; the license prohibits automated access without written authorization
- Mac-only teams and firms that expect live chat or evening support outside filing season; the program requires Windows 11
The jobs a tax team actually hires TaxAct Professional for
Jobs, mapped to how finance teams actually buy.
Run a 1040 practice on one flat annual fee
The 1040 Bundle covers unlimited individual returns with all 1040 state editions and e-file for one preparer. A multi-user version with cloud data storage and Document Manager costs $1,375. Both move to retail prices of $1,275 and $1,475 on 1 January 2027.
Pay per return for a small or seasonal book
A preparer pays $169.99 for the year, then $29.99 for each 1040 and $44 for each state edition. With one state edition, the bill passes the $725 1040 Twenty Bundle at 18 returns and the $1,175 unlimited plan at about 33 returns (Audit Friendly estimates). Prepaid returns bought for tax year 2026 expire on 31 December 2028.
Add business returns for one flat price
The Complete Bundle adds 1065, 1120, 1120S, 1041 and 990 returns with all states, and K-1 data exports from pass-through returns into owners' 1040s. Drake Tax Pro's multi-user unlimited plan listed at $3,145 on 10 October 2026. Forms 706 and 709 are outside TaxAct's product list.
Pull W-2 and 1099 data from client PDFs
SmartExtract (Beta), Powered by Drake Software, extracts W-2, 1098 and supported 1099 data into a 1040 return and shows the source document beside the entry screen for review. It is free during the beta and accepts PDF and image files up to 5 MB. TaxAct warns that results may be incomplete or mapped incorrectly.
Collect documents through a branded portal
Client Portals, Powered by Drake Software, gives clients a branded site to upload documents, answer questionnaires and message the firm. It replaces Client Xchange, which cost $99 for tax year 2025 with unlimited storage and retires on 31 October 2026. E-signatures and card payments are separate add-ons.
Offer audit defense without doing the casework
Audit Defense, Powered by Drake Software, hands IRS and state notices, audit inquiries and tax identity theft cases to credentialed staff from tax year 2026. Practice Coverage costs $9 per individual return and $65 per business return. Per-return coverage costs $54.99 and allows a mark-up of up to $65.
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What it actually costs
Here's what it really costs: published rates where a vendor lists them, aggregated quote data where they don't, plus a path to your own number.
Multi-user license for the federal 1040 program with Document Manager and cloud data storage. Each 1040 e-filed or printed costs $29.99; state editions are $44 each.
Multi-user license for all federal business editions (1065, 1120, 1120S, 990, 1041) plus 1040. Returns cost $29.99 per 1040 and $49.99 per business return; state editions are $49 each.
Twenty 1040 returns with all 1040 states, multi-user. Extra individual returns cost $29.99 each and unused returns do not roll over.
Forty returns in any mix of 1040, 1041, 1065, 1120, 1120S or 990 with all states, multi-user. Extra returns cost $29.99 individual and $49.99 business.
Unlimited 1040 returns with all 1040 states. Multi-user adds the Enterprise version, Document Manager and cloud data storage. Retail prices of $1,275 and $1,475 apply from 1 January 2027.
Unlimited 1040, 1065, 1120, 1120S, 1041 and 990 returns with all states. Multi-user adds the Enterprise version, Document Manager and cloud data storage. Retail prices of $2,275 and $2,675 apply from 1 January 2027.
1040 state editions cost $44 each or $115 for all states. 1041, 1065, 1120S and 1120 state editions cost $49 per state for each return type, or $145 for all states of one return type. The 990 state edition is $49 per state with no all-states price. Bundles already include state software.
Branded client portal with unlimited users, secure messaging, document checklists and 5GB of storage. Additional storage costs $99 per 25GB block. The subscription year runs 1 November to 31 October.
From tax year 2026, e-signatures run through Client Portals and are bought as separate signature events on top of the portal subscription. TaxAct had not posted event prices by 10 October 2026.
Practice Coverage enrolls every client at $9 per individual return and $65 per business return. Per-return coverage for individual clients costs $54.99, with an optional mark-up of up to $65.
No setup fee and no long-term contract. ACH payments cost 1 percent plus $0.60, with a $50 minimum transaction.
Partner tax research library from Tax Materials, Inc., offered to TaxAct Professional customers at $299; the page shows $389 struck through.
What it actually takes to go live
The TaxAct Professional Software License Agreement, last updated 8 September 2026, defines automated means as scripts, bots, robotic process automation, AI agents and scraping tools. It prohibits using them to access the software without prior written authorization. It also forbids using the software or its output to train or operate AI systems, and forbids running an API or automated filing service on top of it. Firms planning browser agents or RPA around tax prep should get consent in writing first (read 10 October 2026).
TaxAct's data conversion tool converts prior-year 1040 files from ProSeries, TaxSlayer Pro and TaxWise. Clients from ATX, CrossLink, Drake, ProConnect, Lacerte and UltraTax come in through a PDF import that carries names, addresses, dependents and other basic fields. TaxAct lists no converter for 1041, 1065, 1120 or 1120S returns. By contrast, Drake Software lists free converters for TaxAct 1040, 1041, 1065, 1120 and 1120S data, so leaving is easier than arriving (support article and Drake conversions page, checked 10 October 2026).
From tax year 2026, TaxAct's support article says a Client Portals subscription is required to buy and use integrated e-signatures. The portal costs $299.95 a year, and signature events are bought on top. TaxAct's e-signature page said on 10 October 2026 that the tax year 2026 offering was coming soon, with no prices. Intuit includes digital signatures with KBA at no added fee in ProSeries and Lacerte for tax year 2026, so price the full signing cost before comparing plans.
TaxAct Professional lists 1040, 1041, 1065, 1120, 1120S and 990 products; Forms 706 and 709 are not among them. Its state schedule for tax year 2025 marked the 1041 state edition as not supported in 22 jurisdictions. Seven of those levy no individual income tax; the other 15 include Connecticut, Louisiana, Utah and Wisconsin. Many business state editions carried anticipated release dates in February 2026, such as Alabama 1041 on 16 February, and Arizona 1041 e-file was listed for 5 March 2026 (support article, checked 10 October 2026).
Under the license agreement updated 8 September 2026, a cancellation after release is refunded less 15 percent, and only if no return has been activated, prepared or e-filed and the request arrives in writing by 31 December 2026. After that date a refund must be requested within three business days of payment. Bundle returns do not roll over to the next tax year, and prepaid returns for tax year 2026 expire on 31 December 2028. TaxAct can also move an Enterprise customer to pay-per-return pricing if it judges usage to exceed reasonable professional use.
The system requirements page lists Windows 11 as both the minimum and recommended operating system and says file sync services such as OneDrive and Dropbox are not supported for data storage (checked 10 October 2026). Multi-user offices choose between TaxAct's online storage and a local network share. Support is by phone and email, weekdays 8 AM to 5 PM Central from 16 April 2026 to 22 January 2027; in-season hours are posted on the support page when the season opens.
Scored on what an outside agent can actually reach: the documented API, how it authenticates, and whether the vendor ships an MCP server.
Exists: TaxAct runs a first-party hosted MCP server at mcp.taxact.com, listed in the official MCP registry as com.taxact/taxact-mcp since 6 May 2026 and announced as the Claude Connector for TaxAct on 21 July 2026. It serves TaxAct's consumer guidance. No MCP server or public API for TaxAct Professional appeared in the registry, on GitHub or on TaxAct's pages when checked on 10 October 2026.
Scope: The server exposes eight read-only tools: filing cost comparison, a rough tax estimate, a document checklist, tax questions answered from a tax year 2025 knowledge base, deadlines, form explanations, interview navigation and a pointer to expert help. TaxAct's page says it is not connected to any TaxAct account. It cannot open a client list, a return, e-file status or Professional Reports.
Turnkey: For the consumer server, yes: add the URL as a custom connector in Claude Desktop, with no account or key. For TaxAct Professional there is nothing to connect. The license agreement updated 8 September 2026 prohibits accessing the software through scripts, bots, robotic process automation or AI agents without TaxAct's prior written authorization, and bars using the software or its output to train or operate AI systems.
In-product AI: SmartExtract (Beta), Powered by Drake Software, reads W-2, 1098 and several 1099 forms from PDF or image files and places the data in a 1040 return for side-by-side review. It is free during the beta and limited to 20 documents per return and 5 MB per file. TaxAct says extracted data may be incomplete, inaccurate or mapped incorrectly, and its pages disagree on the tax year: the support article says 2025 returns only, while the site-wide disclosure says tax year 2026.
TaxAct Professional, kept current
TaxAct introduced SmartExtract (Beta), Powered by Drake Software, which reads W-2, 1098 and supported 1099 forms into 1040 returns for preparer review. It is free during the beta and was first announced on 22 September 2026.
The tax year 2026 Software License Agreement carries a last-updated date of 8 September 2026. Its text prohibits access through scripts, bots, robotic process automation or AI agents without TaxAct's written authorization.
Connecticut's attorney general announced a $275,000 settlement over taxpayer data shared with Meta and Google through tracking technologies between January 2018 and December 2022, before the current ownership. The release does not mention the Professional product.
TaxAct announced the Claude Connector for TaxAct, an MCP server with eight consumer guidance tools such as filing cost comparisons and refund estimates. It does not connect to TaxAct accounts or to TaxAct Professional.
TaxAct began selling Client Portals, Powered by Drake Software, in June 2026 at $299.95 a year and posted its introductory webinar page on 20 July 2026. The older Client Xchange portal retires on 31 October 2026.
TaxAct opened enrollment for a Drake-run audit defense service for tax year 2026 returns, priced from $9 per individual return under Practice Coverage. Tax year 2025 returns stay with Protection Plus.
TaxAct Professional FAQ
All plans are published. Pay-per-return is $169.99 a year for the 1040 program, or $279.99 with business editions, plus $29.99 per individual return and $49.99 per business return. State editions are $44 to $49 each on pay-per-return, bought once per state for each return type. Bundles of 20 or 40 returns cost $725 and $1,095 with all states (published, checked 10 October 2026).
A firm filing 100 individual and 30 business returns would pay $2,495 for the multi-user Complete Bundle, or $2,095 on a single seat. The same volume on pay-per-return would cost about $4,779 before state editions (Audit Friendly estimate from the published rates). Unlimited prices rise by up to $180 on 1 January 2027. Budget separately for Client Portals at $299.95 a year and for tax year 2026 e-signature fees, which were not yet posted.
Licenses are sold per tax year and paid in full up front. A cancellation after release is refunded less 15 percent if no return has been started and the request is in writing by 31 December 2026; after that the window is three business days from payment. Disputes go to arbitration in Dallas under Texas law (license agreement, updated 8 September 2026).
Client files sit on the firm's own drive or network, or on TaxAct's servers for Enterprise customers who choose online storage. The license describes online backup as available for up to seven years beyond each return's filing deadline, for as long as TaxAct offers the software, and says TaxAct may delete data after termination. Keep local backups and PDF copies of every return. Drake Software lists free converters for TaxAct 1040, 1041, 1065, 1120 and 1120S data, and Intuit lists TaxAct among the packages it converts 1040 data from.
Most small firms can be live in one to two weeks (Audit Friendly estimate). The firm does the work itself: submit the IRS e-file application summary so TaxAct can verify the EFIN, download and install the program on Windows 11, enter practice and preparer details, and convert or import last year's clients.
Plan extra time if the book includes business returns or comes from Drake, Lacerte or UltraTax. Only 1040 files from ProSeries, TaxSlayer Pro and TaxWise convert directly, and other clients arrive through a PDF import of basic data. A free evaluation edition is available first; it cannot e-file and leaves out the multi-user features.
No. TaxAct Professional had no public API and no MCP server of its own when checked on 10 October 2026. The license agreement updated 8 September 2026 also prohibits scripts, bots, robotic process automation and AI agents from accessing the software without TaxAct's prior written authorization.
TaxAct does run a hosted MCP server for consumers, launched as the Claude Connector on 21 July 2026. It offers eight read-only tools such as filing cost comparisons, a rough refund estimate and document checklists, and it is not connected to any TaxAct account. Inside the product, SmartExtract (Beta) uses AI to read W-2 and 1099 data into 1040 returns for the preparer to review.
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