EY TaxChat sells full-service tax preparation for filers who prefer a digital experience to an in-person one. EY TaxChat is backed by Ernst & Young, one of the Big Four accounting firms, and all of the tax preparers are either certified public accountants or enrolled agents.
Business Insider's personal finance team compared EY TaxChat to the best tax software and found it to be a standard offering.
Who is EY TaxChat Best For?
EY TaxChat is best for people who want their taxes done by a professional but don't want to spend time vetting people. Since all correspondence with your tax pro and document sharing are done digitally, you should be very comfortable using technology.
If you tend to wait until the last minute to file your taxes, EY TaxChat may not be for you. The deadline to submit all of your tax documentation is March 15. This gives your tax pro enough time to complete your return, obtain your final approval and signature, and file on time.
Starts at $199 for federal and 1 state return
- Connect with a qualified tax pro quickly
- Easy-to-use interface
- Easy document upload
- Saves time vetting independent tax preparers
- Costlier than DIY tax software
- Direct access to your tax pro costs extra
- Filing for an extension costs extra
- Does not keep records of your tax returns
- No free tax preparation, even for the simplest returns
EY TaxChat offers a streamlined digital tax prep experience for those who want to hand the task off to a professional, though it could be more expensive for simple filers than TurboTax or H&R Block's full service offerings. And there is an extra $125 charge for filing an extension, which is usually free with DIY tax software.
- Full-service tax preparation
- All tax pros are CPAs or enrolled agents
- No appointments needed
- Cost depends on the complexity of your financial situation
- Easy to get a price quote by answering questions about your income and expenses
- Includes federal and state returns
EY TaxChat Details
- Full-service tax preparation
- All tax pros are CPAs or enrolled agents
- No appointments needed
- Cost depends on the complexity of your filing
- Easy to get a price quote by answering questions about your income and expenses
- State return prep available
Personalized Tax Preparation
EY TaxChat pairs you with a licensed tax professional who can prepare and file your federal and state tax returns for a fee.
Expert Tax Professionals
Only tax preparers with the highest level of tax training work with EY TaxChat. Enrolled agents are licensed by the IRS to represent taxpayers during audit or noncompliance issues, and are proficient in federal tax planning and individual and business return prep. They must pass an exam, meet ethical standards, and complete 72 hours of continuing education every three years.
Certified public accountants, or CPAs, are licensed by state or U.S. territory accountancy boards to prepare tax returns and assist taxpayers with their planning needs. They are required to pass an exam, meet ethical standards, and complete continuing education requirements.
Secure Document Upload
All of your documents will be shared with your tax team via secure document upload in your online account.
Mobile and Online Accessibility
From registering your account to uploading your documents to chatting with your tax team, the EY TaxChat experience takes place entirely online via the web or the EY TaxChat mobile app.
EY TaxChat Pros and Cons
Advantages of EY TaxChat
- Connect with a qualified tax pro quickly
- Easy document upload
- Full-service tax prep
Disadvantages of EY TaxChat
- Filing for an extension costs extra
- Does not keep records of your tax returns
- No free tax prep, even for the simplest returns
How Much Does EY TaxChat Cost?
Transparent Pricing Structure
How much you'll pay for EY TaxChat's services depends on the complexity of your filing. Returns start at $199. You can expect to pay more if you have multiple sources of income, homeownership deductions, investment gains, business expenses, or rental property. That's similar to how most accountants price tax preparation.
EY TaxChat charges a fee of $125 to file an extension, which pushes your deadline from April 15 to October 15 (though you still need to calculate and pay your bill on time to avoid penalties and interest). Filing for an extension is often free with self-preparation tax services.
For an additional $500, you can add TaxChat Plus, a concierge service that gives you the ability to connect with your tax pro via email, phone, or chat to talk about what to expect and to go over your completed return in detail.
Value for Money
An annual study conducted by the National Association of Tax Professionals showed that CPAs charged an average of $166 per basic return (Form 1040. EAs charged an average of $177. The more forms or schedules the preparer needs to use to complete your return, the more you'll pay.
Most people can save money by self-preparing their taxes online. However, if you don't have the time or interest in doing it yourself, and you have the means to hire a professional, EY TaxChat may be worth it. However, unlike the typical experience of working with a CPA, EY TaxChat does not offer year-round tax planning.
Estimate Your Taxes
How Does EY TaxChat Work?
User Interface and Design
You need to create an EY TaxChat account to get a price estimate. After signing in, you'll be prompted to read and agree to various financial and privacy disclosures.
Then you'll be asked a series of questions about your marital status, dependents, income sources, expenses, and deductions for 2024. You will also need to provide your Social Security number or check the box that says you'll be filing with an ITIN. With that information, the platform generates a price estimate, which includes one federal return and one state return (there's an added cost for multiple state returns).
The more detail you provide at this stage, the more accurate your estimate will be. If you forget to mention that you earned money from a side gig or sold cryptocurrency, the cost to prepare your return will go up (you'll be notified by your tax pro of each price increase or decrease).
Step-by-Step Guidance
After registering with EY TaxChat you'll get a list of tax forms to upload to your account. For example, a W-2 if you're a salaried employee or one or more 1099s if you're self-employed. If you have questions about the required forms, you can start a chat with the support team at any time, but it may take up to 48 hours to get a response.
After uploading all of the required documentation, your tax pro will prepare your return. After reviewing it, you can pay the fee via debit or credit card and provide deposit details for your refund if you're getting one. Throughout the process, you can refer to a handy status bar on your account dashboard to see which steps still need to be completed.
If you opt for the TaxChat Plus service, you'll be assigned a Tax Services Concierge, whom you'll contact via phone as a first step to discuss the tax-prep process and any questions or concerns you have about your return.
Customer Support
Support Options Available
You can access a chat function within your account at any time if you have questions about what documents are needed or anything else related to your taxes. If you're not actively using the app, responses from your tax preparer will be emailed to you. The typical response time is within 48 hours. Phone calls can be scheduled by your tax pro if needed.
Security and Privacy
Data Encryption and Security Measures
EY TaxChat uses industry-standard data encryption practices to safeguard your data and any documents you share with your tax preparer.
Privacy Policy
You can review EY's full privacy policy here, which explains how the company collects, stores, and uses your data.
EY TaxChat Alternatives
EY TaxChat vs. TurboTax Live
TurboTax's Live Assistance plan gives you on-demand access to a tax pro, but you're still ultimately self-preparing your return. EY TaxChat only offers full-service preparation, which TurboTax also sells. TurboTax and EY TaxChat are both tech-forward and mobile-friendly, but TurboTax has video chat and screen-share capabilities for meeting with a tax pro. TurboTax also keeps records of tax returns you file through the platform for up to seven years.
Read our TurboTax review
EY TaxChat vs. H&R Block
H&R Block's full-service offering is going to be cheaper than EY TaxChat for basic and even moderately complex situations. Two similar tax profiles — a single filer with no dependents, income from one job, and student loans — turned up a price quote of $320 at EY TaxChat versus $185 (plus an additional state fee) at H&R Block. If you'd like the option to meet with your tax pro in person to go over your return, ask questions, or submit supporting documents, H&R Block is the better choice.
Read our H&R Block review
EY TaxChat vs. FreeTaxUSA
FreeTaxUSA is a completely free federal filing option for DIY filers, while EY TaxChat is an option for those who can pay at least $200 for professional tax preparation. At FreeTaxUSA, you can talk to a tax specialist for just $7.99.
Read our FreeTaxUSA review
File Taxes with EY TaxChat
EY TaxChat Customer Experience
Compilation of User Feedback
EY TaxChat is not widely rated on public review sites or forums. The few reviews of its mobile app are generally positive, with an average 4.1-star rating on Apple's App store and an average 3.3-star rating on Google Play.
Is EY TaxChat Trustworthy?
EY TaxChat is backed by the reputation and expertise of Ernst and Young, a Big Four accounting firm. The company says EY TaxChat offers a simple, reliable, and quick way to get your personal taxes filed by knowledgeable professionals.
FAQs About EY TaxChat
EY TaxChat is a full-service tax preparation service that doesn't require any in-person appointments or phone calls. You answer a few questions online about your financial situation, get a cost estimate, and get paired with a tax pro who will ask you to upload specific documents to your account via the web or EY TaxChat mobile app.
EY TaxChat's charges vary for tax preparation depending on the complexity of your financial situation and whether you need to file more than one state tax return.
EY TaxChat uses industry-standard encryption and information storage practices.
Yes, EY TaxChat is available for download for iPhone and Android devices.
EY TaxChat connects you with a licensed tax preparer who can do your federal and state taxes for you. You have access to the tax pro through a chat function in your account and in certain cases over the phone.
EY TaxChat is similar to TurboTax or H&R Block's full-service tax prep offerings. By sharing information about your tax situation, the service estimates the cost to prepare your return. If you agree to the cost, a tax pro will prepare your return by the filing deadline.
EY TaxChat may be worth the cost if you have income from multiple sources or a business, for example, or if self-preparation is too overwhelming or stressful. How much you pay for full-service tax prep is based on the complexity of your return, which is ultimately the number and breadth of forms you need to file with the IRS and your state tax authority.
Why You Should Trust Us: How We Rated EY TaxChat
EY TaxChat is not a typical online tax software because there is no self-preparation option. Instead, users answer a few personal and financial questions, upload all of their relevant tax documents, and stand by as a CPA or enrolled agent completes their return for a fee.
We didn't use our tax software rating system for EY TaxChat, since it's essentially a tax preparer matching tool — a quicker way to find a reliable tax professional than Googling options yourself — and doesn't share its complete pricing structure publicly.
