FreeTaxUSA Review: Free Simple & Complex Federal Returns

FreeTaxUSA is an online tax preparation service that lets you file your federal return for free, regardless of your tax situation. State filing and extra support require additional fees, but they’re offered at very attractive price points. Thus far, the company has filed over 43 million tax returns with the IRS. Let’s take a closer look at FreeTaxUSA below.

FreeTaxUSA also partners with Rakuten and other cash back shopping services. Be sure to activate one before purchasing.

See the best tax filing services here.

E-file.com is another low-cost tax filing service. Also, compare FreeTaxUSA with TurboTax, H&R Block and TaxAct.

FreeTaxUSA Features

FreeTaxUSA is fairly simple to use. Simply fill out all your personal information before you can move on to the income, credits and deduction sections. In the return section, you can pick and choose the topics that apply to you and skip the ones that don’t. Each topic has a question-and-answer process, much like if you were to fill out your tax return by hand. Other features include:

• A free tax calculator to estimate your taxes, determine your refund or liability, and find deductions and credits.
• Automatically carry last year’s information over to this year’s taxes. This works if you used FreeTaxUSA the previous year, or if you import a PDF of your prior year’s tax returns.
• A 100% accuracy guarantee with a refund on interest and penalties if there were any calculation errors on your federal return.
• A maximum refund guarantee with a return of your prep fees if you get a bigger refund or lower tax liability when you prepare an identical return with a competitor.

Those on the Deluxe version also benefit from Audit Assist for their federal returns. This gives you access to audit specialists who can answer any questions you might have. It also unlocks the Audit Center, where you’ll find a wealth of information that might be helpful during an audit.

FreeTaxUSA Payment & Refund Options

FreeTaxUSA lets you pay for their service with your credit or debit card (no additional fee), or with part of your refund ($19.99 fee). Tax refund options include direct deposit, prepaid debit card and paper check.

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FreeTaxUSA Customer Support

FreeTaxUSA offers limited direct customer support. You can search for topics on the Customer Support page, or you can email them directly. If you’re on the Deluxe version, you have access to the Q&A database, along with free support via live chat.

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FreeTaxUSA Plans & Pricing

Whether your tax situation is simple, basic or complex, preparing your federal tax return with FreeTaxUSA is free. Yes, that means homeowners, those who are self-employed and others who have rental income can file their federal returns for $0. That said, state tax returns will cost you an extra $14.99 (often discounted). Still, this pricing is relatively low, compared to H&R Block Online and other top competitors.

FreeTaxUSA also has a Deluxe edition for $6.99. This upgrade provides access to additional features, like priority customer support, audit assistance and unlimited amended returns. If you have a complicated tax situation, or if it’s your first time filing online, you might want to go for the Deluxe option.

It is possible to start off with the Free version and upgrade to Deluxe if you need more help.

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Bottom Line

FreeTaxUSA lets you file both simple and advanced federal taxes for free. For additional features, you can opt for their low-cost Deluxe service. All in all, FreeTaxUSA is a solid tax prep solution, especially if you’re on a tight budget.

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