I just finished my taxes using Tax Act, and wanted to offer a few opinions as a longtime Tax Cut user who tried it out this year for the first time
- My previous experience has been with approx 15 years with TaxCut, which I liked. I was unable to find any great sales on it this year. I wanted to do my taxes using on-machine software, rather than online. I did buy a copy of Tax Cut Standard at Dollar Tree for (guess----) $1, but this version would not handle Schedule C. I've been wanting to try/support Tax Act, so I decided to take the plunge.
Price: Very good. With Tax Act Deluxe (incl efile) and my State version included, it cost less than $20.
UsabilityGrade: B-. Though I wanted to like the software, it was just not as easy to use or as foolprroof as Tax Cut. It also left me on my own for some important areas. Examples of differences from Tax Cut:
-- Keeping track of the process: With Tax Cut, there is an easy to follow checklist that accompanies the Q&A, and as you complete sections the box changes color. Not so with Tax Act-- as you complete each section a checkmark appears, but the "granularity" is much greater--it is easy to overlook items if you don't go back and check.
-- Available help: In the Q and A, the Tax Cut questions are very complete and clear, so it is relatively easy to know how to answer each question. The Tax Act wording is closer to the wording on the IRS forms--some people may like this. Asking for "help" brings you to the JK Lasser publication that covers that particular area, and you get to a more general coverage of the subject. I found the Tax Cut "help" to be more helpful.
-- Terra Incognita: I needed to compute the maximum amount could contribute to my Solo 401K. It is fair to say that Tax Act offered almost no assistance with this relatively straightforward calculation. Instead, I learned that I should refer to the appropriate IRS publication. I did that, but also used the last-year copy of Tax Cut that I had sitting around to help me through the process. If I had never done it before, figuring out the hoops ( what is an "Elective Deferral", Profit Sharing Portion," limit of 20% for non-corporations, etc) would have been a big headache. Tax Cut also had a few minor quirks, but after you figured out the terminology it handled the calculations easily.
In addition, I think Tax Cut does a better job of highlighting changes in the tax code and of showing neophytes how to take advantage of the tax code to reduce their taxes. Tax Act worked well, but offered less handholding and was content to let me walk right past opportunities to save money.
Technical Glitches: For whatever reason, the Tax Act software cannot be run from my hard drive once it has been installed. I had to email the company, and their "fix" (offer verty quickly, so this must be a regular problem) was to have me remove the installed version and re-install the program for every session. My data was retained and worked fine in subsequent sessions so it wasn't an "OMG!!" moment, but this hardly seems like a great way to run a railroad.
Next year I'll probably go back to Tax Cut even if it costs $20 more. Tax Act was not terrible software, but I didn't find anything that I liked better about it (except the price) and, at least for me and my situation, it is not the best value despite being inexpensive. Next year in particular I expect there will be a lot of changes in the tax code, so I want to be sure my tax software will clearly and directly show me how the changes impact my situation and how i can take advantage of the new rules. Based on what I saw, I think Tax Cut may do a better job of that than Tax Act will. For me. YMMV.
- My previous experience has been with approx 15 years with TaxCut, which I liked. I was unable to find any great sales on it this year. I wanted to do my taxes using on-machine software, rather than online. I did buy a copy of Tax Cut Standard at Dollar Tree for (guess----) $1, but this version would not handle Schedule C. I've been wanting to try/support Tax Act, so I decided to take the plunge.
Price: Very good. With Tax Act Deluxe (incl efile) and my State version included, it cost less than $20.
UsabilityGrade: B-. Though I wanted to like the software, it was just not as easy to use or as foolprroof as Tax Cut. It also left me on my own for some important areas. Examples of differences from Tax Cut:
-- Keeping track of the process: With Tax Cut, there is an easy to follow checklist that accompanies the Q&A, and as you complete sections the box changes color. Not so with Tax Act-- as you complete each section a checkmark appears, but the "granularity" is much greater--it is easy to overlook items if you don't go back and check.
-- Available help: In the Q and A, the Tax Cut questions are very complete and clear, so it is relatively easy to know how to answer each question. The Tax Act wording is closer to the wording on the IRS forms--some people may like this. Asking for "help" brings you to the JK Lasser publication that covers that particular area, and you get to a more general coverage of the subject. I found the Tax Cut "help" to be more helpful.
-- Terra Incognita: I needed to compute the maximum amount could contribute to my Solo 401K. It is fair to say that Tax Act offered almost no assistance with this relatively straightforward calculation. Instead, I learned that I should refer to the appropriate IRS publication. I did that, but also used the last-year copy of Tax Cut that I had sitting around to help me through the process. If I had never done it before, figuring out the hoops ( what is an "Elective Deferral", Profit Sharing Portion," limit of 20% for non-corporations, etc) would have been a big headache. Tax Cut also had a few minor quirks, but after you figured out the terminology it handled the calculations easily.
In addition, I think Tax Cut does a better job of highlighting changes in the tax code and of showing neophytes how to take advantage of the tax code to reduce their taxes. Tax Act worked well, but offered less handholding and was content to let me walk right past opportunities to save money.
Technical Glitches: For whatever reason, the Tax Act software cannot be run from my hard drive once it has been installed. I had to email the company, and their "fix" (offer verty quickly, so this must be a regular problem) was to have me remove the installed version and re-install the program for every session. My data was retained and worked fine in subsequent sessions so it wasn't an "OMG!!" moment, but this hardly seems like a great way to run a railroad.
Next year I'll probably go back to Tax Cut even if it costs $20 more. Tax Act was not terrible software, but I didn't find anything that I liked better about it (except the price) and, at least for me and my situation, it is not the best value despite being inexpensive. Next year in particular I expect there will be a lot of changes in the tax code, so I want to be sure my tax software will clearly and directly show me how the changes impact my situation and how i can take advantage of the new rules. Based on what I saw, I think Tax Cut may do a better job of that than Tax Act will. For me. YMMV.
, so the thought of making a change to new software just adds to my joy. 
