TaxAct Professional
Affordable professional tax preparation software with unlimited individual return filing.
About TaxAct Professional
TaxAct Professional prepares and e-files individual and business tax returns for solo practitioners and small firms. The unlimited individual return tier covers 1040 and related forms at a flat annual rate, which makes it cost-competitive against Intuit ProSeries and Drake when your practice runs more than roughly 150 individual returns per season. Business returns — 1120, 1120S, 1065, and 1041 — are priced per return, so a firm with 40 S-corp clients will pay incrementally on top of the base fee. Day to day, you work through a forms-based or interview-based workflow, run the built-in diagnostics before transmission, and push returns directly to IRS and state agencies. The client organizer collects data via questionnaire but does not replace a dedicated client portal. QuickBooks and Excel imports pull trial balance data into business returns without manual re-keying. The integration list is short. There is no native connection to practice management platforms like Canopy or Karbon, no document management, and no billing automation. You will run those workflows in separate tools. The pay-per-return business pricing also becomes unpredictable in March and April when volume spikes. Firms processing more than 80 business returns per year should model the total cost carefully before assuming TaxAct beats a Drake flat-fee bundle.
Best for
Solo practitioners and small firms wanting affordable tax preparation with unlimited filing
Key Features
- Unlimited individual tax return filing
- Pay-per-return business tax preparation
- Electronic filing with IRS and state agencies
- Client management and organizer tools
- Tax form diagnostics and error checking
Pros & Cons
Pros
- Unlimited 1040 filing at a flat rate undercuts Intuit ProSeries Basic and ProConnect on a per-return basis once volume exceeds roughly 150 individual returns annually
- Direct e-filing to IRS and all states that accept electronic transmission, with real-time acknowledgment tracking inside the dashboard
- Built-in diagnostics flag incomplete entries and common errors before transmission, reducing rejected returns without a separate review checklist
- QuickBooks and Excel trial balance import populates business return schedules directly, cutting manual data entry on 1120S and 1065 filings
- Interview and forms-based entry modes let preparers switch between methods per return, which matters when onboarding staff with different backgrounds
- Client organizer generates a customizable data-request questionnaire that can be sent before the engagement starts
Cons
- Pay-per-return pricing on business returns (1120, 1120S, 1065, 1041) creates unpredictable cost spikes during busy season — a firm filing 60 S-corps will feel this
- No native integration with Canopy, Karbon, Financial Cents, or other practice management tools, so client tracking, billing, and document storage require separate subscriptions
- No free trial or evaluation tier; you pay before testing it on live workflows
- Smaller user community than Drake or Intuit means fewer third-party training resources, peer forums, and local user groups
- Client portal functionality is limited to the organizer questionnaire — secure document exchange and e-signatures require add-ons or a separate tool
- No public pricing page for business return per-unit costs; you must contact sales to model total cost for a mixed-service practice
Ledger Brief Take
Primarily competes on price against Intuit and Thomson Reuters with unlimited individual returns that could work for high-volume practices, though the pay-per-return business model creates cost unpredictability during busy season. The limited integration ecosystem means you'll likely need separate practice management tools rather than an all-in-one workflow.
Frequently Asked Questions
Common questions accountants ask about TaxAct Professional.
What does the $200/month base price actually include?
The entry price covers unlimited individual (1040) return preparation and e-filing. Business returns — 1120, 1120S, 1065, and 1041 — are billed separately on a pay-per-return basis. Per-unit costs for business returns are not published; contact TaxAct sales directly to get a quote based on your expected volume.
How does TaxAct Professional compare to Drake Tax on price?
Drake charges a flat annual fee covering all return types with no per-return surcharges, which makes it more predictable for firms with significant business return volume. TaxAct is cheaper upfront but can exceed Drake's total cost once you add per-return business filing fees. Run the numbers using your prior-season return mix before deciding.
Does TaxAct Professional integrate with QuickBooks?
Yes. TaxAct imports QuickBooks trial balance data directly into business return schedules, which reduces manual entry on 1120S and 1065 filings. The integration covers data import only — there is no two-way sync, and TaxAct does not push return data back into QuickBooks.
Is TaxAct Professional suitable for a firm filing mostly business returns?
Not the most cost-effective fit. The unlimited tier covers only individual returns. A firm where 40 percent or more of revenue comes from 1120S, 1065, or 1120 work will accumulate significant per-return charges. Drake or UltraTax CS with flat-fee bundles are worth comparing for that workload profile.
How does TaxAct handle data security and IRS transmission?
TaxAct transmits returns over encrypted connections to IRS and state agencies and provides electronic acknowledgment tracking. Client data is stored on TaxAct servers. The platform is an IRS-authorized e-file provider. For firms with strict data residency requirements, confirm server location and retention policies directly with TaxAct before signing up.
Can TaxAct Professional replace practice management software?
No. It prepares and files returns and includes a basic client organizer. It does not handle time tracking, invoicing, document storage, e-signatures, or client communication logs. Firms that want those workflows in one place should evaluate Canopy or Jetpack Workflow alongside TaxAct rather than instead of them.