FreeTaxUSA
FreeTaxUSA
How to Choose the Right Product?
Hiring a CPA to do your taxes gets expensive, but preparing your own taxes can cost a pretty penny too if you don’t choose the right software. While having support filing your taxes is important – mistakes aren’t a good thing, you need a program that is supportive, but doesn’t cost too much.
FreeTaxUSA is about as inexpensive as they come – as its name states, it’s ‘free.’ While you won’t get all the bells and whistles you’d get from a more expensive program if you have simple tax returns and know the basics of filing taxes it may be just what you need.
If you’re thinking about FreeTaxUSA, here’s what you need to know.
Free Edition
The Free Edition is free to file your federal taxes. If you want to file state taxes too, it’ll cost you $14.99. What’s unusual about FreeTaxUSA is their free edition covers everything from W-2 income to self-employment income and everything in between. Other major tax preparation software programs only offer a free edition for ‘simple’ tax filings.
What it Includes:
The FreeTaxUSA Free Edition includes preparation of your federal taxes no matter your situation (minus a few exceptions below). It’s a user-friendly program that covers most of the bases, but you won’t get robust support, so it helps if you know what you’re doing.
The Free Edition includes:
- More than 350 standard and complicated tax deductions/write-offs
- A user-friendly program
- No annoying ads asking you to upgrade
- Free tax return storage for up to 7 years
- Accuracy Guarantee that all calculations and formulas are accurate
Who Should Use It:
Almost anyone can use FreeTaxUSA, but the following people benefit the most:
- You don’t qualify for the free edition of other programs (like Turbo Tax)
- You don’t need one-on-one support
- You can navigate your way through most tax issues
The Situations FreeTaxUSA Doesn’t Handle
- Income from other countries
- Nonresident alien tax returns
- Anyone filing US taxes while living abroad
- At-risk limitations
- Casualty or theft claims for businesses
- Donations valued over $5,000
The Cost
FreeTaxUSA is free to file your federal taxes. If you want/need to file state returns, it’s $14.99.
Pros
- It’s free
- Supports almost all forms of income and deductions
- Makes filing even complicated tax returns easy
Cons
- No upload option for W-2s or other tax forms, you must manually enter all information
- No option for live customer support
Deluxe Edition
If you’d prefer live chat, unlimited support, or you’re worried about an audit, consider the FreeTaxUSA Deluxe Edition. While it’s not free, at just $6.99, it’s much cheaper compared to its competitors.
As far as filing your tax returns, everything is the same as the Free Edition. It’s the addition of personalized support that makes this version so different.
What it Includes:
The FreeTaxUSA Deluxe Edition includes everything the Free Edition includes with the addition of the following:
- Live chat with priority support – Not only do you get support from a live specialist, but with Priority Support, you’re at the head of the line. Live chat is available Monday – Saturday 8 AM – 12 AM ET.
- Audit Assist – FreeTaxUSA specialists will help you through an audit, helping you through each step of the process
- Unlimited amended returns – You can file as many amended returns as necessary
The Deluxe Edition also includes:
- More than 350 standard and complicated tax deductions/write-offs
- A user-friendly program
- No annoying ads asking you to upgrade
- Free tax return storage for up to 7 years
- Accuracy Guarantee that all calculations and formulas are accurate
Who Should Use It:
The cost of just $6.99 makes the Deluxe Edition available to almost everyone, and for the support, it’s almost worth it.
You aren’t obligated to choose this option if you have a ‘complicated’ tax situation or have a lot of write-offs – the Free Edition will do. But, if you want the support, audit guidance, or think you may need to file amended returns, the Deluxe Edition may be a better choice.
Keep in mind, you’ll input all income, deductions, and any other tax-related information manually. If you have a complicated tax situation, this could be a downside as it can be time-consuming and put you at risk of more human errors.
The Cost
The Deluxe Edition costs $6.99 no matter your tax situation for federal returns. If you have state returns too, it’s an additional $14.99.
Pros
- Access to personalized support to help you with your tax filing
- Easy to use interface that makes it easy for even beginners to file their taxes
- Support during an audit (which can be scary)
Cons
- It costs extra to file your state taxes
- You must manually input all information, there’s no upload option
Bottom Line
FreeTaxUSA is one of the least expensive tax preparation products available. Even with the $14.99 state filing fee, it still comes in as one of the cheapest. If you have an uncomplicated tax situation and are comfortable handling the process yourself, the Free Edition is a great option.
If you prefer a little more hand-holding or like the peace of mind of audit support, the Deluxe Edition is so inexpensive that it’s an easy choice for most people. Just keep in mind, you’ll input everything yourself, so you give up convenience to save a little money.