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Monday, February 10th
FreeTaxUSA is a tax preparation service that does exactly what it says in its name: provides tax preparation and filing 100% free of charge. Founded in 2001 by a CPA, FreeTaxUSA is currently owned by TaxHawk, Inc. and is an original member of the IRS Free File Alliance. FreeTaxUSA holds authorization from the IRS as a provider for tax e-filing.
Full suite of forms and services
You can expect all of the important forms to be available through FreeTaxUSA. The site offers support for filings that include W-2, IRA, interest in dividend income, unemployment compensation, social security benefits, capital gains, sales of stocks and mutual funds, self-employment income, Partnership of S Corporation income, self-employment taxes, and more. FreeTaxUSA also offers other income options like gambling, royalty, unreported tips, child investment, alimony, taxable scholarships and grants, and more. There are only a handful of forms not supported through FreeTaxUSA, and these include:
Quick sign up
To begin your federal tax preparation at FreeTaxUSA, you just need to click the "Start Return” button. You'll be asked to create a new account with a new email and password. Then, FreeTaxUSA will ask you some basic questions like how you filed your taxes in the previous year, whether you want to import your taxes from the previous year, and details on your taxpayer information. Once you've filled out the basics, FreeTaxUSA will ask if you want to add the Deluxe package to your tax preparation plan. This includes live chat assistance and unlimited amendments. In general, you should be filling out your tax preparation forms and return filings within 5 minutes of sign-up.
Pricing from $0 to $14.99 for filing
Filing at FreeTaxUSA is free for everything including single filing, joint filing, and business filing. The only fee will be a $14.99 cost if you file your taxes with the state (not just federally). There are some add-ons you can pay for, such as the Deluxe Edition of FreeTaxUSA which costs $7.99 or Pro Support for $39.99. But for the basic federal filing, you won't pay a dime.
Three customer-focused guarantees
FreeTaxUSA offers three separate guarantees. First, they promise a maximum tax refund when you use the FreeTaxUSA platform. Second, you're guaranteed to have totally free federal tax filing (as long as you don't opt into the Deluxe upgrade). Finally, FreeTaxUSA promises that all of the calculations are guaranteed to be accurate at all times. If you pay any penalties or interest to the IRS due to a calculation error, they'll pay you back for the penalties and interest.
Mixed reviews and issues with logging in
While the guarantees and costs (or lack thereof) sound great, there are some concerning reviews to consider. Let's start with the good news first: FreeTaxUSA holds an "A-” rating and accreditation from the Better Business Bureau. However, across other third-party review sites, the news isn't so good. On Trustpilot and Sitejabber, FreeTaxUSA has way more negative reviews than we like to see. Trustpilot shows an average of 2.7 stars out of 5 while Sitejabber shows an even lower 2.2-star average. Customers claim issues with logging in after completing nearly the entire return process, as well as problems with using the site if they move to a new location while they're working on their return. While there are some compliments from repeat customers, the negative feedback for FreeTaxUSA outweighs the positive overall.
Not really worth looking at, even for free features
Despite the impressive guarantees and an "A-” rating from the BBB, we're a little cautious about FreeTaxUSA due to the feedback from customers. While you might be curious to check it out for its free filing options for federal taxes, it may have some technological issues. And, you may find a more satisfying or helpful tax preparation with our higher-rated services instead.
Let's face it: tax season is nobody's favorite time of the year. Whether you're a W-2 employee or an independent contractor, taxes are a source of stress every spring. But, it doesn't have to be that way. Tax preparation services are there to ease the process (and are particularly helpful if you own your own business).
So, what do tax preparation services actually do? Most services offer planning to understand your tax situation and filing. You may receive preparation of your actual return, or advice on different aspects of your taxes like individual tax returns, estate tax planning, personal financial planning, deductions, property tax assessments, tax credit reviews, and more. The tax advisor (individual or website) can make taxes make sense and help you avoid many of the pitfalls.
A few years ago, the IRS (Internal Revenue Service) estimated that there were around 1.2 million paid tax preparers available in the US. Tax preparation can be completed by a range of licensed agents, accountants, or businesses who can take the weight of tax season off your shoulders.
The most important thing about finding a tax preparation service is to make sure you work with one you trust. The three best professional credentials to look for include Enrolled Agents (or entities), who are licensed directly by the IRS and must pass an examination to demonstrate their understanding of federal tax planning, individual and business taxes, and representing you properly; Certified Public Accountants (CPAs) who have studied finance at a university and passed charter exams and requirements for accounting; and, Attorneys who are licensed by state courts and have passed a bar exam in financial law.
Now, keep in mind, there will be fees for using most tax preparation services, but these will be minimal compared to the high fines and charges from the IRS if you make a mistake on your return. For even small errors on your taxes, you could be looking at thousands of dollars in fines. A one-time fee for a tax preparation service is no sweat in comparison. Most tax preparation and filing costs between $30 to $500 (though some really comprehensive services cost more), so you'll want to make sure you know what you need before you start.
If you're ready to simplify tax season, but don't know which service to choose, we've put together some factors that can help you find the best tax preparation service for your financial situation:
To help you find the best service to get your return filed this tax season, Top Consumer Reviews has researched and ranked the top tax preparation services out there today. Take the stress out of tax season and hand the nitty-gritty details over to an expert (or enjoy a guided DIY approach that is as simple as a step-by-step guide). After that, you just need to sit back, relax, and wait for those lovely tax returns!
Select any 2 Tax Preparation Services to compare them head to head