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CNET Editors' review
TaxACT 2012 Free Federal Edition offers basic tax preparation for and electronic filing of your 2012 federal income tax return. It offers step-by-step guidance not only for filing your taxes but also for maximizing your deductions and refund, if applicable, plus free help from the TaxACT Answer Center and other resources. It's compatible with most versions of Windows, from XP to 8, and complies with the latest updates to the U.S. tax code.
TaxACT 2012 Free Edition starts with a user-friendly interface offering quick links to Basic Info, Dependents, Filing Status, and a range of related topics such as Life Events, State and Federal Q&A, and Next Year (which helps you prepare for the next tax cycle). A small pop-up advised us that the program regularly runs in-product video tutorials during the Interview (set-up) process, which involves a free registration process. We could opt out of these videos by checking a box, something dial-up users will appreciate. Registering TaxACT not only gives you access to more information but also creates your password and provides the Customer ID number you'll need to e-file your taxes with the software. When we were ready to get down to business, we clicked Forms on the toolbar. A huge list of Forms and Schedules is available in a tree view in the program's sidebar -- basically everything from Form 1040EZ to Form T (Forest Activities Schedule) and in between. We clicked Form 8896, the Low Sulfur Diesel Fuel Production Credit form. The form closely resembled a printed federal form. As with similar tools, TaxACT 2012 walked us through each step of entering, checking, and filing our taxes. We should note, however, that we didn't actually file with TaxACT; we simply ran through the steps without sending in our forms. But we were impressed with what it offers, especially compared to similar products.
TaxACT 2012 is also available in a Deluxe version that can import previous years' tax data and do your state taxes. If all you need is to file your 1040s, the Free Federal Edition is sufficient. However, the Deluxe version costs less than $13, so it's affordable if you need it.
Publisher's Description
From 2nd Story Software:
TaxACT 2012 Free Federal Edition completes your tax return the fast and easy way. TaxACT includes over 120 forms, schedules and worksheets, plus the interview steps you through completing your return, or you can enter directly onto the tax forms. TaxACT calculates your return for you, then reviews your return and alerts you of possible errors. Prepare, print, and e-file your return for free.
What's new in this version: Version 2012 may include unspecified updates, enhancements, or bug fixes.
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All versions:
3.8 starsout of 46 votes
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Current version:
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"Cool thorough tax program."
Version: TaxACT 2012 Free Federal Edition 2011
Pros
Straightforward and easy to use!
Cons
I haven't found any. Been using the program for years.
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"Excellent results with TaxAct for at least 10 years"
Version: TaxACT 2012 Free Federal Edition 2011
Pros
Can complete 1040 by either interview or form fill-in and software determines if submission of 1040 or 1040a is required. Has all necessary forms for my federal retirement and SS.
Cons
none noted in all the many years I have used
Summary
My son and grandchildren are also using the FREE version which includes FREE electronic file - no postage and refund in just days.
I have been so pleased with this product that I have been using their PRO version for a number of years for just $9.95 which also includes the FREE E-file.
Updated on Oct 22, 2011
Updated on Oct 22, 2011I have been so pleased with this product that I have been using their PRO version for a number of years for just $9.95 which also includes the FREE E-file.
Updated on Oct 22, 2011I have been so pleased with product that I have been using their PRO version for $9.95 which also includes the FREE E-file. -
"Inexpensive and convenient"
Version: TaxACT 2012 Free Federal Edition 2010
Pros
Inexpensive and convenient. When I needed help a year or two ago I got it promptly.
Cons
Transfer of data to state returns could be better, see below. Also, some forms I opened in the program were not exactly the same as the ones I got in the mail and needed to copy into TaxAct.
Summary
I switched from TurboTax to TaxAct a few years ago because it is cheaper. The year I switched I used both and I found opening and switching forms a little more convenient with TaxAct. I am retired and the sources of my income are neither numerous nor complicated. I still like TaxAct but my limited experience with the state forms revealed some weaknesses. This is what happened.
I have installed TaxAct Deluxe and the state programs for NY, MA and RI because I am a resident of NY and I am a limited partner in a real estate partnership which has properties in MA and in RI.
I filled in the NY resident tax form first, hoping that this will inform TaxAct that I am a nonresident of MA and RI. When I opened the MA nonresident form I had to put in by hand my address which should have been transferred automatically. My MA income was $1960 but at this stage TaxAct said I owed something like $2600 in MA taxes. What happened was that TaxAct copied to MA Schedule D, line 3 from US Schedule D, line 11 my capital gain from futures contracts. That item got there from federal form 6781 and was obviously not a MA item for a nonresident taxpayer who spent 0 days in MA. The way to get rid of it was to put the equal amount in MA Schedule D line 9, but it took me a long time to figure that out.
I next went to the TaxAct RI forms. It turned out that TaxAct put my data on RI-1040, resident income tax return. I then opened a copy of RI-1040NR (Non-Resident) which was blank. It turned out I had to open the resident income tax return, notice that on it there was a question whether I was resident or nonresident. I marked nonresident which caused no visible change. Fortunately I then closed the form and to my delight under it was the NR form with my data on it, and the information that I owed RI $8352 tax on my RI income of $3192. (0 days of residence in RI)
Going through the lines I got to where nonresidents are instructed to go to page 7, schedule III to separate RI and non-RI income. I could not find Schedule III on what TaxAct calls pages 7 and 8. It turned out that RI page 7, schedule III can be found on what TaxAct calls page 5. Kind of confusing. -
"Does what it's supposed to do."
Version: TaxACT 2012 Free Federal Edition 2010
Pros
Easy to use.
Cons
Can't bring in info from prior returns.
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"Horrible Software"
Version: TaxACT 2012 Free Federal Edition 2010
Pros
e file - that's really ABOUT IT!!!
Cons
no way to manually return
1120S and 1040 NOT consolidated and sold seperately
terrible error checking
terrible in line help
terrible customer serviceSummary
Horrible software
I had used TaxACT in 2008, 2009 and almost 2010 only to find that the software is flawed. I purchased both the 1120 S software for my business and the 1040 software. I found the software did not take my income from my K1 and apply it to my personal filing. I even answered the questionnaire properly. THere was no way to overwrite the form figures to fix this. I ended up having to file an amended return to recoup money from last year AND I ended up filing my 1040 for 2010 on my own. Also my deductions were not calculated properly. The flags were not informative, only provided basic errors on missing info vs. anything else. Health savings was not deducted either. I ran the same numbers thru turbotax and got more accurate results.
I emailed their support to inform them of their software bug. The response said I answered the questions wrong. I sent them the screenshots to prove I answered according to what was needed to generate the right numbers. I sent the email twice and received no response back- shameful!
DO NOT, I WARN, DO NOT USE THIS SOFTWARE. -
"The best there is."
Version: TaxACT 2012 Free Federal Edition 2010
Pros
Accurate and easy to use.
Cons
None that has occurred.
Summary
I have been using the Deluxe Edition (purchased) since 1998 and am very satisfied with it.
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"Takes much longer than preparing return manually"
Version: TaxACT 2012 Free Federal Edition 2010
Pros
Didn't cost anything (except my time)
Cons
Inaccurate, time-wasting, bombards you with upgrade ads, irrelevant questions must be answered, rounds (almost) everything resulting in mathematically meaningless results, ambiguous instructions, provides no method of entering required information...
Summary
Even on simple returns, Taxact makes numerous mistakes. Yes, you can override them if you are familiar enough with tax law to know something needs to be overridden, lucky enough to spot the error before the return is submitted, and familiar enough with the software to do so -- but why should you have to correct their work?
It takes me about ten minutes to do a simple return manually, yet more than an hour with "tax preparation software". Why bother? The ONLY advantage is electronic forms submission, which gets your refund about 10 days earlier than paper submission with direct deposit. But you should adjust your withholding and/or estimated tax so that you always OWE a small amount, rather than making an interest free loan to the IRS each year. That way, you aren't concerned with how fast you obtain your refund.
There is no provision for entering "various" in the "date purchased" column of capital gains and losses on Schedule-D (which the IRS requires if you are selling shares that were purchased at various times). If you enter "various" for long-term gains, TaxAct will treat these as short-term gains! Yes, you can get around the problem by entering any date that is more than a year before the sales date, but you have to understand tax law and audit the return to know that TaxAct handled it incorrectly, spot the error, and technically commit perjury, to get an "accurate" return.
Similarly, TaxAct does NOT allow you to enter wash sale data in the prescribed method, and there is nothing in their "help" database that resolves this problem -- although you can spend hours looking. Nor have they responded to queries and complaints about this issue in two years.
And why does TaxAct have the Schedule-D fields in a different order than the IRS form (which any sensible person would use a a guide in record-keeping during the year)? This makes accurate data entry that much more difficult.
Nor, despite asking myriads of irrelevant questions, and repeatedly offering an "upgrade" to a more expensive version, does TaxAct ask if the taxpayer wishes to appoint a third-party designee (a question that appears below the signature line of the paper 1040). There is a way of entering this, but only if you search long and hard.
Taxact does not include TWO address lines on the W2 and 1099 input forms, so we can type what appears on the copy we receive. And it truncates most of the data it unnecessarily forces us to waste time entering.
Taxact is no worse than any of its competitors, but that's not saying much. And don't be tempted to upgrade. The expensive edition is no better, despite having more (unneeded) "help" screens. -
"not idiot proof but usable"
Version: TaxACT 2012 Free Federal Edition 2010
Pros
Does most of the simple things nice.
Cons
Got cornered a couple of times & took some time getting it straight
Summary
program is great considering the price
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"Can't import from Turbotax or HR Block"
Version: TaxACT 2012 Free Federal Edition 2010
Pros
This may be good software, but without import feature, I won't waste time on it
Cons
Free version won't allow imports, Paid version allows imports but uses unusual .pdf approach I don't trust...I was hoping the free version would give me a chance to test that import approach...it doesn't
Summary
I've read reviews on TaxAct elsewhere that cited the importing of prior year data as a weak point. As a low market share player, you'd think they'd focus on lowering switching costs so regular Turbotax and HRBlock users would give them a try. Turbotax and HRBlock both provide decent import capabilities with their entry level products
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"Tax Act presents the form in an easily understood way."
Version: TaxACT 2012 Free Federal Edition 2010
Pros
Tax Act, once again, gives a client a simple but knowledgeable method for preparing the summary of income to be taxed for the Federal Government. It isn't just a tax Form, but, for me, it is a teaching instrament.
Cons
I can't imagine anyone enjoying the act of giving their earnings away, but that is what our government requires. Therefore, I may not like it but I must pay my share. The product is simply a means to assist my preparation for an unhappy act.
Summary
TaxACT helps to make tax paying simple with an understandable method anyone can use.
