E-file.com vs TaxAct: Best Budget Tax Software for 2026
If you're a freelancer, sole proprietor, or small business owner looking for affordable tax software, you've probably narrowed it down to a handful of budget options. E-file.com and TaxAct are two of the most popular, both significantly cheaper than TurboTax or H&R Block, both capable of handling self-employment income and Schedule C.
But they're not the same product. One is bare-bones simple and very cheap. The other costs more but covers a wider range of business tax situations. Here's the honest comparison so you can pick the right one and move on with your life.
Pricing: Side by Side
Both platforms offer tiered plans. Here's what matters for business owners and freelancers. you'll almost certainly need the self-employed or premium tier:
| Plan | E-file.com | TaxAct |
|---|---|---|
| Free / Basic federal | $0 (very limited. W-2 only, income under $100K, no itemizing) | $0 (Form 1040 only, no itemizing, no investments) |
| Mid-tier (Deluxe) | ~$21 federal | ~$55 federal |
| Self-employed / Premium | ~$37 federal | ~$70 federal |
| State filing | ~$28 per state | ~$40 per state |
| Total (self-employed + 1 state) | ~$65 | ~$110 |
Prices reflect standard 2026 rates. Both run promotions. E-file.com often has a 15% off code, TaxAct runs new-customer deals as low as $29.99 for federal + state.
E-file.com is clearly cheaper. But pricing isn't the whole story.
What Each One Actually Handles
| Feature | E-file.com | TaxAct |
|---|---|---|
| Schedule C (sole proprietor) | Yes (Premium) | Yes (Self-Employed) |
| 1099-NEC / 1099-MISC | Yes (Premium) | Yes (all paid tiers) |
| Itemized deductions | Yes (Deluxe+) | Yes (Deluxe+) |
| Investment income / capital gains | Limited | Yes (Premier+) |
| S-Corp (1120-S) / Partnership (1065) | No | Yes (separate business product) |
| Import W-2 / 1099 | Manual entry mostly | Auto-import from many institutions |
| Prior year import | No | Yes (from TurboTax, H&R Block) |
| Mobile app | No | Yes (iOS + Android) |
| Live tax expert access | No (software support only) | Yes ($25–$60 add-on for Xpert Assist) |
| Accuracy guarantee | Yes | Yes (up to $100K) |
The big gap: E-file.com doesn't support S-Corp or partnership returns at all. If your business is anything other than a sole proprietorship, TaxAct is your only option here. TaxAct also offers auto-import for tax documents and access to live tax pros, neither of which E-file.com provides.
Who Should Use E-file.com
E-file.com makes sense if you check all of these boxes:
- You're a sole proprietor or freelancer filing Schedule C
- Your tax situation is straightforward. No rental properties, no complex investments, no business partners
- You don't need hand-holding or expert advice
- You want to spend as little as possible and are comfortable with manual data entry
- You file in one state
At ~$65 for federal + state, it's one of the cheapest ways to file a self-employed return. The interface is clean and simple, and it does a good job of translating tax jargon into plain English. But "simple" also means limited. If your situation gets more complex next year, you'll outgrow it.
Who Should Use TaxAct
TaxAct is the better fit if any of these apply:
- You need S-Corp, partnership, or estate/trust filing (1120-S, 1065, 1041)
- You have investment income, rental properties, or capital gains to report
- You want the option to talk to a real tax expert
- You're switching from TurboTax or H&R Block and want to import last year's return
- You file in multiple states
At ~$110 for self-employed federal + state, it's still significantly cheaper than TurboTax Self-Employed (~$170+) or H&R Block (~$145+). And TaxAct has been doubling down on small business features. It's one of the only DIY platforms that handles S-Corp returns online.
The Verdict
For most freelancers and sole proprietors with simple returns, E-file.com gets the job done at the lowest price. If your tax situation involves anything beyond Schedule C. S-Corp, investments, multiple states, rental income. TaxAct is worth the extra $40–$50. Both are solid budget options. Neither is a bad choice. The question is how complex your business tax situation is right now, and how complex it's likely to get.
Choose E-file.com if…
- Solo freelancer, one state
- Simple Schedule C
- Comfortable with DIY
- Budget is the top priority
Choose TaxAct if…
- S-Corp, partnership, or multiple entities
- Investments, rental income, capital gains
- Want access to live tax experts
- Willing to pay a bit more for features
Frequently Asked Questions
Is E-file.com safe?
Yes. E-file.com is IRS-authorized and uses secure encryption. It has an A+ rating with the Better Business Bureau.
Does TaxAct handle quarterly estimated taxes?
TaxAct can help you calculate estimated payments, but it doesn't file them for you. You'll still need to submit Form 1040-ES to the IRS each quarter.
Can I switch from TurboTax to TaxAct?
Yes. TaxAct lets you import your prior-year return from TurboTax or H&R Block, which saves time on data entry.
What if I need to file business taxes for an LLC?
It depends on how your LLC is taxed. Single-member LLCs file on Schedule C (both platforms handle this). Multi-member LLCs file Form 1065; only TaxAct supports this.
Are there better free options?
If your return is truly simple, Cash App Taxes is completely free for federal and state with no income limits. But it doesn't support Schedule C, so it won't work for most business owners.