TaxSlayer vs. TaxAct on 1099 Income: Cost vs. Confidence

The product positioning

TaxSlayer and TaxAct sit in the second tier of consumer tax software — below TurboTax and H&R Block in market share, above the genuinely-free options like Cash App Taxes. Both target the price-sensitive end of the moderate-complexity filer market. Both have been around long enough to be credible. Both have ad campaigns built around being "cheaper than TurboTax."

The pricing as of late February 2026:

• TurboTax Self-Employed: $129 federal + $59 state = $188
• H&R Block Self-Employed: $89.95 federal + $39 state = $128.95
• TaxAct Self-Employed: $109 federal + $59 state = $168
• TaxSlayer Self-Employed: $74.95 federal + $44.95 state = $119.90

TaxSlayer is the cheapest of the four, by enough to matter. But the question is whether the savings come at the cost of usability or accuracy.

What we tested

A 1099-heavy return: a freelance writer with multiple income sources (1099-NEC from four different clients), home office deduction, $3,200 in equipment expenses, professional development costs, mileage, $4,800 in 1099-MISC payments to subcontractors, single filer.

Total federal liability across all four tools: matched within $42 (well within tolerance for legitimate methodology differences).

Where TaxAct shined

The Schedule C interview in TaxAct is genuinely good. It walks through expense categories methodically, prompts for commonly-overlooked items (subscriptions, business meals, professional development), and asks specifically about home office and equipment depreciation. The interview is comparable in quality to H&R Block's and meaningfully better than TaxSlayer's.

QBI calculation was correct, with a clear summary showing the deduction and the income-limitation logic.

The 1099-NEC entry flow handled multiple clients gracefully. Each 1099 entered as its own line, with the totals rolling up to gross self-employment income.

Time to file: 1 hour 8 minutes.

Where TaxSlayer shined

TaxSlayer is cheaper. That's the headline benefit and it's real. For a price-sensitive filer with a return that fits the product's capability, the $40-60 savings vs. TaxAct compounds over years.

TaxSlayer's interface is simpler than TaxAct's — fewer interruptions, less marketing, fewer "did you also..." prompts. For an experienced filer who knows what they're claiming, the streamlined interview is faster.

QBI calculation was correct. Math was right. The end result was a federal refund within $19 of TaxAct's.

Time to file: 47 minutes.

Where TaxSlayer struggled

The interview prompts are thinner. Specifically:

• The home office deduction interview didn't proactively offer the comparison between simplified ($5/sqft) and actual-expenses methods. The user has to know to ask.
• Section 179 expensing on equipment was an option but not a default. The interview offered straight depreciation without prompting about the Section 179 alternative.
• Professional development and education expenses had a single line item rather than a category-driven entry.

For an experienced filer, these gaps are a non-issue — they know what to claim and where. For a less-experienced filer, the gaps mean missed deductions. We compared the federal refund computed by TaxSlayer with the one TaxAct produced. TaxSlayer was $19 lower because of one missed Section 179 election that the user (in the persona we were filing) didn't know to override.

For a $40 software cost saving, $19 in extra tax is a 50% give-back of the savings. For users who consistently miss deductions, the math flips.

Where TaxAct upsold

TaxAct's interview includes multiple prompts to upgrade:

• "Audit Defense" add-on: $50, presented twice during the interview.
• "Xpert Help" tax pro support: $40-$60, presented as the user encounters complexity.
• "Premier" upgrade: $30 above Self-Employed, suggested when the user enters investment income.

Each of these is dismissable but the cumulative friction is real. We declined all of them and the experience felt like clicking through obstacles. TaxSlayer's flow has fewer of these interruptions.

How both compare to H&R Block

H&R Block at $89.95 federal + $39 state ($128.95 total) is in the same price tier as TaxSlayer ($119.90 total) and meaningfully cheaper than TaxAct ($168). H&R Block's Schedule C interview is comparable to TaxAct's in quality, possibly better. H&R Block also offers the Live Tax Pro Review for $130, which neither TaxSlayer nor TaxAct have direct equivalents for.

The pricing-vs-quality matrix:

• Cheapest: Cash App Taxes (free) → only if your return fits the supported scope.
• Best value: H&R Block Self-Employed at $128.95 → comparable interview quality to TurboTax at meaningfully lower price.
• Cheapest brand-name: TaxSlayer at $119.90 → real savings, with interview gaps for inexperienced filers.
• Mid-tier with thorough interview: TaxAct at $168 → competitive with H&R Block but with more upsell friction.
• Most thorough: TurboTax at $188 → the price premium is real but unjustified for most filers in 2026.

H&R Block wins the median user by a comfortable margin. TaxSlayer and TaxAct are credible but each has caveats.

The crypto question

We tested crypto activity in both: a 47-transaction year of casual crypto trading. Both tools accept CSV uploads of capital gains transactions. Neither has native integration with crypto exchanges or specialized crypto tax software (Koinly, CoinTracker, ZenLedger).

For users with significant crypto activity, the workflow is the same in both: produce a Form 8949 export from a specialized tool, then import the totals. The friction is comparable.

The verdict

For a 1099-heavy filer, both TaxSlayer and TaxAct are credible alternatives to TurboTax. TaxSlayer wins on price; TaxAct wins on interview thoroughness. Both lose to H&R Block on the price-quality combination.

If you're already comfortable filing your taxes and want the cheapest credible option that isn't Cash App Taxes: TaxSlayer.

If you want a thorough interview that catches optimization opportunities: TaxAct or H&R Block, with H&R Block being the price-competitive choice.

If you want the lowest possible total cost and your return fits the scope: Cash App Taxes.

The premium tier (TurboTax) is hard to justify in 2026. The value tier (H&R Block, TaxAct, TaxSlayer, Cash App Taxes) has gotten good enough that most filers who pay TurboTax are paying for brand recognition rather than functional advantage.