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.
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.
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.
Almost anyone can use FreeTaxUSA, but the following people benefit the most:
FreeTaxUSA is free to file your federal taxes. If you want/need to file state returns, it’s $14.99.
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.
The FreeTaxUSA Deluxe Edition includes everything the Free Edition includes with the addition of the following:
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 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.