FreeTaxUSA

FreeTaxUSA 2020 is an IRS-approved e-file provider that has filed over 43 million tax returns with the IRS. As a top-rated tax software, they claim they can help you get the maximum tax refund you may be entitled to in the fastest way possible. It’s a great option for gig economy workers and homeowners if you own a business or if you’re an independent contractor/have a 1099 income. FreeTaxUSA offers federal tax returns, E-file services, customer support, tax extension assistance, and printable tax return options.

In terms of the software, you can expect the same features as other e-filing tax services, such as simple document upload, deduction and credit maximization, health care taxation calculations, and self-employment, business, and investment income reporting. The difference with other services is that FreeTaxUSA offers all of these included in their Free Edition. If you have more complex tax return needs, they also offer optional paid add-ons like audit help, amendment of returns, or priority support, among others. And while their federal tax filing service is free, there is a cost to use them for state taxes and other add-ons. More on that below.

This particular tax software is ideal for those who want value yet still need options beyond the 1040EZ/1040A return. Their most significant perk is undoubtedly the opportunity to file any return, no matter the complexity, for a low price. For example, you can file a premium federal tax return completely for free. You can use FreeTaxUSA’s software to file forms 1040 (main return form), 1040SR (for seniors) and 1040X (amendments).

FreeTaxUSA also allows you to prepare prior year returns (2017-2023) at no cost. While you can’t electronically submit returns for these years, it makes it easy to get them prepared quickly. You can also easily import your tax returns from other software platforms if you used other competitor services in past tax returns.

FreeTaxUSA Pricing

FreeTaxUSA offers a free plan that includes Federal Tax Returns for all tax situations. This free plan includes:

Federal tax returns
Prior year tax returns
An easy-to-use platform that is beginner-friendly
Step-by-step guidance
Your maximum tax refund calculations
Fast access to repayments on your tax returns
Rental income, investments and home ownership are accounted for in your tax returns
Suitable for freelancers, small businesses and contractors
All tax extensions to extend your filing deadline by filing form 4868 for free
Basic support includes help from the FreeTaxUSA experienced support agents via email or the in-app support center
Download a free PDF copy of your tax return to print yourself

Aside from this free plan, you can easily opt-in for these paid add-on features, which are entirely optional:

$14.99 State Return: Save time and avoid errors by filing your federal and state returns together. You can prepare it with a few clicks, with E-File and direct deposit included. Access state-specific deductions, credits, and forms for a maximum tax refund.
$19.99 Audit Defense: Audit Defense experts will communicate with the IRS on your behalf and provide up to $1 million in services. Access a personal audit defense team with IRS and state support for lasting peace of mind.
$7.99 Deluxe Support: Access a live chat with our tax specialists, get unlimited amended returns, and jump to the front of the line if you have questions. Get priority support via their live chat and unlimited amended tax returns.
$39.99 Pro Support: File with help from a Pro. Get access to an expert for your tax questions. Get personalized tax advice from a tax pro and phone support.
$15.98 Unlimited Amended Returns: File 1040-X as many times as you need to fix your tax return. If you filed with Deluxe or Pro Support, amended returns are free.
$17.97 Prior Year Amended Returns: File an amended return for years 2023-2017.
$17.99 Prior Year Tax Return: File taxes from 2023-2017.
$7.97 Professionally Printed Return: Get a printed copy of your tax return mailed to you, including shipping fees.
$15.97 Professionally Bound Return: Get a copy of your current year tax return bound and sent to you, including shipping fees.

FreeTaxUSA Payment options

FreeTaxUSA offers different payment options for any add-ons you may want to include:

Pay with your card: This free option is fast and easy, and you can use a credit or debit card.
Pay with your refund: For $24.99, you can pay nothing upfront by having the cost of your order taken out of your federal refund.

They also offer different ways in case you need to pay the IRS:

By direct debit: Use your bank account information and routing number to pay your taxes due for free.
By card: For a small 2.5% fee, get the convenience of paying taxes with a credit or debit card.

FreeTaxUSA Reviews

FreeTaxUSA gets consistently good reviews from users and has many benefits over other online tax services. The main advantage is that the free version of this service is inclusive for consumers. Among the many things covered for free:

Over 350 Credits/Deductions: Includes itemized deductions and hundreds more
Prior Year Info Import: Import your prior year tax information
Tax Return Backup: Print your finished tax returns now or later
Home Ownership: Write off mortgage interest and property taxes
Charitable Donations: Get credit for your donations
Filing History: Compare this year’s numbers with last year
Small Business Income: File taxes with self-employed, 1099, or contractor income
Investment Income: Report income from stocks, bonds, and dividends
Rental Income: Claim your expenses and rental income
HSA Contributions: Get a deduction for your Health Savings Account
Student Loan Interest: Write off the interest you pay on student loans
Joint filings/dependents: FreeTaxUSA provides comprehensive support for these

Another benefit is that you can bookmark pages of your tax return, so you can take as much time as you need to complete your return. You can pick up where you left off and view which sections you’ve completed. You can also see the times you’ve logged in and time stamps for when you visited all the pages in your tax return.

FreeTaxUSA offers lots of support during your tax return process. It provides an education section with answers to numerous tax situations. Their “Help Topics” section in the sidebar corresponds to the topic of the page you’re on, saving time and increasing accuracy for your support needs.

FreeTaxUSA Benefits

These are a few benefits of using FreeTaxUSA to file your tax returns:

Maximum Refund: If your tax refund is bigger than what you get through FreeTaxUSA, the company will refund you any fees you paid to file and let you amend your return for free. You don’t get this perk, though, if the refund is smaller because of your mistakes.
Accuracy Guarantee: This guarantee covers any calculation mistakes the software makes, resulting in penalties or interest you pay the IRS. The guarantee doesn’t cover any interest or penalties you pay as a result of entering incorrect information into the software. If you believe the software made a mistake, you need to send a letter to FreeTaxUSA within 45 days of the penalty or interest charge.
Ease of Registration: It’s easy to get started. Simply sign up for an account with your basic information and try FreeTaxUSA for free. FreeTaxUSA is also user-friendly. Throughout the entire application, FreeTaxUSA will use the data you give them to fill out any supporting forms your tax situation requires. At the end of the process, they’ll check your return for mistakes and provide you with a total refund amount for your federal and state taxes.

Limitations of FreeTaxUSA

While FreeTaxUSA is a great service, there are a few limitations. For one, you can’t file with FreeTaxUSA if you’re living outside of the United States or working for your company abroad. There are a few forms that you can’t file with FreeTaxUSA:

Form 2555: Foreign employment income
1040NR: Nonresident alien returns
Form 6198: At-risk limitations
Form 8853: Archer MSA

How to Get Started with FreeTaxUSA

Visit the FreeTaxUSA website to get started for free on your Federal Tax Return for this year, and only pay for what you need. Get 100% accuracy and your maximum refund guaranteed.