Supply: The School Investor
FreeTaxUSA is among the greatest tax software program choices to file your tax return.
Are you a discount hunter trying to save cash whereas submitting taxes? In that case, FreeTaxUSA options one of many lowest-cost DIY tax software program merchandise accessible at this time. It affords free federal tax submitting and low-cost state submitting, irrespective of how advanced your submitting scenario is.
FreeTaxUSA is not the best tax submitting app to make use of. Nonetheless, it might be a sensible choice for the typical tax filer trying to get one of the best deal on their tax return. As a result of handbook kind entry course of, it’s not our favourite selection for lively merchants or these with many 1099 kinds. Nonetheless, for typical households with a W-2 or two, checking account curiosity, and passive investments, it’s one among our prime picks for the 2025 tax season (for tax yr 2024).
Right here’s a better take a look at an important options and downsides of FreeTaxUSA, up to date for the 2025 tax submitting season, that can assist you resolve.
See how FreeTaxUSA compares to one of the best tax submitting apps for 2025 and the way this tax prep possibility ranks in our FreeTaxUSA evaluate beneath.
- Federal submitting is at all times free, no matter your tax scenario
- State tax preparation prices $14.99 per state
- Improve to precedence help and limitless amended returns for $7.99 or get assist from a tax professional for an additional $39.99
FreeTaxUSA – Is It Actually Free?
Whereas “free” is within the identify, FreeTaxUSA isn’t truly free for many customers. The corporate affords free federal tax submitting for all filers. You are performed there in the event you dwell in one of many seven states with no state tax return requirement. All different filers pay $14.99 to file their state returns.
The corporate affords three optionally available upgrades. The improve packages supply precedence help and limitless amended returns for $7.99 or private tax help from knowledgeable for $39.99. You’ll be able to improve to get audit protection for $19.99.
Whereas it isn’t free for anybody needing a state tax return, FreeTaxUSA affords a wonderful discount and one of many least expensive tax submitting packages round. In case you don’t qualify without spending a dime or low-cost tax returns elsewhere on account of investments or self-employment earnings, you will discover vital financial savings with FreeTaxUSA. Out-of-state landlords, aspect hustlers, and self-employed enterprise homeowners could all admire FreeTaxUSA’s low value and value.
Overseas employment earnings, nonresident alien tax returns, filers at present residing exterior of the USA, and high-value donations of property price greater than $5,000 are a few of the few un-supported tax conditions.
We additionally don’t recommend it for lively inventory or crypto merchants. For these wants, we advocate the better expertise from TurboTax or H&R Block, regardless of the upper value.
Be aware: FreeTaxUSA is an IRS Free File supplier, however the software program and limitations are totally different in the event you use the IRS web site versus immediately at FreeTaxUSA. And in the event you begin on IRS Free File, you can’t swap again to the complete model of FreeTaxUSA.
What’s New In 2025?
As with different tax software program, FreeTaxUSA is up to date for 2025 (2024 tax returns) for brand new tax legal guidelines and modifications. Following the prompts and accurately coming into your info ought to yield the identical outcomes as with all different tax software program.
The choice for help from a tax professional was refreshed final yr, with a brand new $39.99 tier to get telephone help and personalised tax recommendation. Audit protection was included final yr, however now requires a separate $19.99 payment.
In a significant improve final yr, FreeTaxUSA added import help in your W-2 from a PDF, although 1099s usually are not but supported for auto-filling. If PDF uploads for 1099 kinds have been added, FreeTaxUSA could be a best choice for a lot of extra tax conditions.
In 2025, anticipate to see the next modifications associated to:
- Tax brackets
- Credit score and deduction limits
- Expanded 1099-Okay necessities for on-line sellers
- Tax code updates
You’ll be able to pay much less to go it alone, however these needing primary assist with tax help or amended returns can improve to Deluxe for $7.99. Assist from a tax professional with telephone and display share help prices $39.99.
In recent times, FreeTaxUSA improved its navigation, bringing it nearer to the industry-leading experiences from higher-cost TurboTax and H&R Block. It nonetheless isn’t as user-friendly as TurboTax, however contemplating the fee, it’s nonetheless fairly good.
Does FreeTaxUSA On-line Make Tax Submitting Straightforward In 2025?
FreeTaxUSA affords a few of the lowest pricing of all tax software program choices. It’s a wonderful worth for what it affords, beating many different opponents with low cost tax preparation software program pricing.
It’s not as straightforward to make use of as TurboTax or H&R Block. These premium software program packages boast imports and integrations that may dramatically ease the monotonous components of tax submitting. Nonetheless, FreeTaxUSA’s notable options, equivalent to question-and-answer steering and useful part summaries, make the software program comparatively straightforward to make use of. The software program’s error dealing with can also be very useful in making certain you don’t miss something essential.
Though customers could spend extra time manually typing info into the software program, FreeTaxUSA is an excellent various to the costliest DIY tax choices.
Notable Options
FreeTaxUSA isn’t premium-priced software program, nevertheless it has useful options that make it a stable contender. Listed below are a number of of probably the most notable options you’ll discover with FreeTaxUSA.
Q&A Plus Menu Steering
FreeTaxUSA Navigation. Screenshot by The School Investor.
Low-Value And Easy Pricing
Professional Help packs a ton of worth in for the value, particularly in comparison with different tax-filing software program choices.
FreeTaxUSA Pricing Choices In 2025. Screenshot by The School Investor.
Part Summaries
FreeTaxUSA shows part summaries as customers undergo the submitting expertise. These summaries present you all earnings, deductions, and credit concurrently. A easy look might help customers acknowledge that they might have missed a piece or made a significant error.
Audit Help Out there
Audit help isn’t included in FreeTaxUSA’s base worth. Audit help is a standalone buy, which prices $19.99. It is a moderately whole lot in the event you’re involved in regards to the IRS coming again with questions on your tax return.
Drawbacks
FreeTaxUSA packs numerous worth for a low worth, nevertheless it has a number of drawbacks in comparison with top-priced opponents. Listed below are a number of software program shortcomings it’s best to know when looking for one of the best low-cost tax software program.
Restricted Tax Type and Knowledge Imports
Customers can import W-2 kinds, however different PDFs and spreadsheets, equivalent to 1099 kinds, usually are not supported. Customers should sort info from their tax paperwork into the software program.
That is fast and straightforward in the event you solely have a W-2 and a financial savings account, however these with lively funding accounts could probably spend numerous time typing in commerce knowledge.
State Submitting Is not Free
A number of firms embrace free state submitting for W-2 workers with easy tax wants of their free tiers. State taxes value $14.99 with FreeTaxUSA, even on its Free Version. This isn’t an enormous worth in comparison with $50 or extra per state with some others. However it’s greater than $0, which is disappointing contemplating it has “free” within the identify.
FreeTaxUSA Costs And Plans
The FreeTaxUSA method to submitting is easy. Federal submitting is at all times free, and state submitting prices $14.99 per state. Customers who need entry to a tax professional for questions and audit help pay further, however you’ll by no means pay further primarily based on the complexity of your submitting scenario. Including audit help prices $19.99 on prime of the packages beneath.
FreeTaxUSA additionally has a number of of optionally available companies they cost for.
- Pay With Your Tax Refund: $24.99 (we do not advocate anybody pay with their tax refund)
- Professionally Printed Tax Return: $7.97 (consists of transport)
- Printed and Certain Tax Return: $15.97
- Prior Yr Return: $17.99 per state
- Present Yr Amended Return: $15.98
- Prior Yr Amended Return: $17.97
How Does FreeTaxUSA Examine?
FreeTaxUSA is among the hottest low-cost tax software program firms, so our comparisons give attention to different fashionable software program choices in the identical (or shut) pricing class. TurboTax and H&R Block are dearer than FreeTaxUSA however supply higher performance.
All of those applications have a free tier. We expect FreeTaxUSA tends to be higher for self-employed individuals, landlords, and individuals who lived or labored in a number of states who’re skilled in submitting their taxes and wish to lower your expenses on their return.
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Unemployment Earnings (1099-G) |
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Dependent Care Deductions |
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Retirement Earnings (SS, Pension, and so forth.) |
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Small Enterprise Proprietor (over $5k in bills) |
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$0 Fed & |
$0 Fed & |
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$7.99 Fed |
$29.99 Fed & |
$22.95 Fed |
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$39.99 Fed $14.99 per State |
$49.99 Fed & $39.99 Per State |
$42.95 Fed |
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$69.99 Fed & $39.99 Per State |
$52.95 Fed |
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Contact
FreeTaxUSA clients can entry primary buyer help by logging into their accounts and sending an e-mail. The corporate says that they usually reply to questions inside half an hour. You may also ship an e-mail to [email protected].
With the Deluxe Version, you get “Dwell Chat with Precedence Help.” You get to leap to the entrance of the queue to speak immediately with a tax specialist at this degree. Chat help is accessible Monday – Friday, 10 a.m. to 9 p.m. Japanese (ET).
With Professional Help, you may attain a human tax skilled by telephone, and display sharing is accessible.
Is It Secure And Safe?
FreeTaxUSA has not suffered from any vital safety breaches. It operates with industry-standard safety and encryption. Multi-factor authentication is required to log in and entry your tax knowledge. School Investor workforce analysis didn’t reveal any historic safety breaches. Customers ought to belief FreeTaxUSA when submitting their taxes.
Nonetheless, even customers who belief FreeTaxUSA ought to know that their knowledge is at some degree of threat. Hackers might goal FreeTaxUSA, and a knowledge breach might expose private info. It’s additionally crucial to comply with on-line safety greatest practices, notably retaining a singular password for each web site, to maintain your info secure if one other web site you employ is compromised.
Why Ought to You Belief Us?
The School Investor workforce spent years reviewing all the prime tax submitting choices, and our workforce has private expertise with nearly all of tax software program instruments. I personally have been the lead tax software program reviewer since 2022, and have in contrast a lot of the main firms on {the marketplace}.
Our editor-in-chief Robert Farrington has been making an attempt and testing tax software program instruments since 2011 and has tried nearly each tax submitting product. Moreover, our workforce has created opinions and video walk-throughs of all the main tax preparation firms, which you will discover on our YouTube channel.
We’re tax DIYers and desire a whole lot, similar to you. We work exhausting to supply knowledgeable and sincere opinions on each product we take a look at.
How Was This Product Examined?
In our unique assessments, we went by way of FreeTaxUSA and accomplished a real-life tax return that included W2 earnings, self-employment earnings, rental property earnings, and funding earnings. We tried to enter every bit of knowledge and use each characteristic accessible. We then in contrast the outcome to all the opposite merchandise we have examined and a tax return ready by a tax skilled.
This yr, we went again by way of and re-checked all of the options we initially examined and any new options. We additionally validated the pricing choices. You’ll be able to see our stroll by way of in our evaluate video.
Is It Value It?
FreeTaxUSA options an important mix of high quality and price. In case you don’t qualify without spending a dime tax submitting elsewhere, excluding Money App Taxes, FreeTaxUSA is probably going your lowest-cost possibility. It’s not splendid for lively inventory and crypto merchants, however different filers will doubtless discover the software program meets their wants.
The main downside to FreeTaxUSA is the shortage of 1099 import performance. We’d love for FreeTaxUSA to import and pre-populating kinds. This is able to reduce the slog of knowledge entry and cut back potential handbook errors. Until added, customers should resolve if the low value is price the additional trouble of transcribing tax kinds and knowledge.
Widespread Questions
Listed below are some widespread questions on FreeTaxUSA:
Can FreeTaxUSA On-line assist me file my crypto investments?
FreeTaxUSA could also be adequate to file your returns in the event you solely traded a number of tokens. You’ll need to lookup the US Greenback foundation of the commerce, however you may key within the trades. Nonetheless, lively crypto merchants will wish to look elsewhere. Typing in dozens of trades into FreeTaxUSA is unlikely to be an excellent use of time.
Do I’ve to pay extra for a self-employed tier for my aspect hustle?
No, FreeTaxUSA fees all customers the identical quantity, irrespective of the complexity of their submitting scenario. Federal submitting is at all times free, and state submitting prices $14.99 per state.
Does FreeTaxUSA supply refund advance loans?
FreeTaxUSA doesn’t supply refund advance loans for 2025.
Does FreeTaxUSA supply any offers on refunds?
No, FreeTaxUSA is not providing any offers or incentives related to refunds. Nevertheless it’s already a reasonably whole lot for tax prep.
Is FreeTaxUSA professional?
Sure, it is a fashionable tax software program preparation firm that has been in enterprise since 2001.
Does the identical firm personal TaxHawk, FreeTaxUSA, and 1040Express?
Sure, FreeTaxUSA is a subsidiary of TaxHawk Inc. The guardian firm owns three software program manufacturers, TaxHawk, FreeTaxUSA, and 1040Express.
Is FreeTaxUSA higher than TurboTax?
It relies upon. FreeTaxUSA is mostly decrease value than TurboTax, however TurboTax additionally affords free submitting choices. FreeTaxUSA is mostly less expensive for an easier tax prep expertise, whereas TurboTax affords higher imports and a slicker interface for a premium worth.
Options
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Precedence Buyer Help |
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Sure, from TurboTax, H&R Block, or TaxAct (Free) |
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With Deluxe Version ($7.99) |
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Deduct Charitable Donations |
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Buyer Service Telephone Quantity |
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