Supply: The Faculty Investor
FreeTaxUSA is among the finest tax software program choices to file your tax return.
Are you a cut price hunter trying to save cash whereas submitting taxes? If that’s the case, FreeTaxUSA options one of many lowest-cost DIY tax software program merchandise accessible at the moment. It presents free federal tax submitting and low-cost state submitting, irrespective of how advanced your submitting scenario is.
FreeTaxUSA is not the simplest tax submitting app to make use of. Nonetheless, it could be a sensible choice for the common tax filer seeking to get the most effective deal on their tax return. As a result of guide kind entry course of, it’s not our favourite selection for lively merchants or these with many 1099 types. Nonetheless, for typical households with a W-2 or two, checking account curiosity, and passive investments, it’s considered one of our prime picks for the 2025 tax season (for tax 12 months 2024).
Right here’s a better have a look at a very powerful options and disadvantages of FreeTaxUSA, up to date for the 2025 tax submitting season, that can assist you resolve.
See how FreeTaxUSA compares to the most effective tax submitting apps for 2025 and the way this tax prep possibility ranks in our FreeTaxUSA assessment under.
- Federal submitting is all the time 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 presents free federal tax submitting for all filers. You are executed there for those who dwell in one of many seven states and not using a state tax return requirement. All different filers pay $14.99 to file their state returns.
The corporate presents three elective upgrades. The improve packages supply precedence help and limitless amended returns for $7.99 or private tax help from an expert 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 presents a wonderful cut price and one of many most cost-effective tax submitting packages round. When you don’t qualify without spending a dime or low-cost tax returns elsewhere attributable to investments or self-employment earnings, you could find vital financial savings with FreeTaxUSA. Out-of-state landlords, aspect hustlers, and self-employed enterprise homeowners could all admire FreeTaxUSA’s low value and usefulness.
Overseas employment earnings, nonresident alien tax returns, filers presently residing exterior of the USA, and high-value donations of property value greater than $5,000 are a few of the few un-supported tax conditions.
We additionally don’t counsel it for lively inventory or crypto merchants. For these wants, we suggest the simpler expertise from TurboTax or H&R Block, regardless of the upper value.
Word: FreeTaxUSA is an IRS Free File supplier, however the software program and limitations are totally different for those who use the IRS web site versus instantly at FreeTaxUSA. And for those who begin on IRS Free File, you can’t swap again to the total 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 getting into your info ought to yield the identical outcomes as with every different tax software program.
The choice for help from a tax professional was refreshed final 12 months, with a brand new $39.99 tier to get cellphone help and customized tax recommendation. Audit protection was included final 12 months, however now requires a separate $19.99 charge.
In a serious improve final 12 months, FreeTaxUSA added import help to your W-2 from a PDF, although 1099s are usually not but supported for auto-filling. If PDF uploads for 1099 types had been added, FreeTaxUSA could be a best choice for a lot of extra tax conditions.
In 2025, count on 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 cellphone and display screen share help prices $39.99.
Lately, 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 price, it’s nonetheless fairly good.
Does FreeTaxUSA On-line Make Tax Submitting Straightforward In 2025?
FreeTaxUSA presents a few of the lowest pricing of all tax software program choices. It’s a wonderful worth for what it presents, beating many different opponents with low cost tax preparation software program pricing.
It’s not as simple 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, akin to question-and-answer steering and useful part summaries, make the software program comparatively simple to make use of. The software program’s error dealing with can be very useful in guaranteeing 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 strong contender. Listed below are just a few of essentially the most notable options you’ll discover with FreeTaxUSA.
Q&A Plus Menu Steering
FreeTaxUSA Navigation. Screenshot by The Faculty Investor.
Low-Price And Easy Pricing
Professional Help packs a ton of worth in for the worth, particularly in comparison with different tax-filing software program choices.
FreeTaxUSA Pricing Choices In 2025. Screenshot by The Faculty 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 may also help customers acknowledge that they could have missed a piece or made a serious error.
Audit Help Obtainable
Audit help isn’t included in FreeTaxUSA’s base value. Audit help is a standalone buy, which prices $19.99. This can be a fairly whole lot for those who’re involved concerning the IRS coming again with questions on your tax return.
Drawbacks
FreeTaxUSA packs a number of worth for a low value, nevertheless it has a number of drawbacks in comparison with top-priced opponents. Listed below are just a few software program shortcomings you need to know when purchasing for the most effective low-cost tax software program.
Restricted Tax Type and Information Imports
Customers can import W-2 types, however different PDFs and spreadsheets, akin to 1099 types, are usually not supported. Customers should kind info from their tax paperwork into the software program.
That is fast and straightforward for those who solely have a W-2 and a financial savings account, however these with lively funding accounts could probably spend a number of time typing in commerce knowledge.
State Submitting Is not Free
A number of firms embody free state submitting for W-2 staff 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 value 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 strategy to submitting is easy. Federal submitting is all the time 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 based mostly on the complexity of your submitting scenario. Including audit help prices $19.99 on prime of the packages under.
FreeTaxUSA additionally has just a few of elective companies they cost for.
- Pay With Your Tax Refund: $24.99 (we do not suggest anybody pay with their tax refund)
- Professionally Printed Tax Return: $7.97 (consists of delivery)
- Printed and Sure 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 Evaluate?
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 packages 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 get monetary savings 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 electronic mail. The corporate says that they usually reply to questions inside half an hour. It’s also possible to ship an electronic 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 instantly 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’ll be able to attain a human tax skilled by cellphone, and display screen sharing is accessible.
Is It Protected 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. Faculty 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 may goal FreeTaxUSA, and an information breach may expose private info. It’s additionally important to observe on-line safety finest practices, notably retaining a singular password for each website, to maintain your info protected if one other website you employ is compromised.
Why Ought to You Belief Us?
The Faculty 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 attempting 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 could find on our YouTube channel.
We’re tax DIYers and need a whole lot, similar to you. We work onerous to supply knowledgeable and sincere opinions on each product we check.
How Was This Product Examined?
In our unique checks, we went via 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 each piece of knowledge and use each characteristic accessible. We then in contrast the end result to all the opposite merchandise we have examined and a tax return ready by a tax skilled.
This 12 months, we went again via 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 via in our assessment video.
Is It Price It?
FreeTaxUSA options an excellent mix of high quality and price. When you don’t qualify without spending a dime tax submitting elsewhere, aside from Money App Taxes, FreeTaxUSA is probably going your lowest-cost possibility. It’s not ideally suited 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 dearth of 1099 import performance. We might love for FreeTaxUSA to import and pre-populating types. This might reduce the slog of knowledge entry and cut back potential guide errors. Until added, customers should resolve if the low value is value the additional problem of transcribing tax types and knowledge.
Widespread Questions
Listed below are some frequent questions on FreeTaxUSA:
Can FreeTaxUSA On-line assist me file my crypto investments?
FreeTaxUSA could also be adequate to file your returns for those who solely traded just a few tokens. You’ll need to lookup the US Greenback foundation of the commerce, however you’ll be able to key within the trades. Nonetheless, lively crypto merchants will wish to look elsewhere. Typing in dozens of trades into FreeTaxUSA is unlikely to be a superb 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 all the time 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 reliable?
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 mum or dad firm owns three software program manufacturers, TaxHawk, FreeTaxUSA, and 1040Express.
Is FreeTaxUSA higher than TurboTax?
It relies upon. FreeTaxUSA is usually decrease value than TurboTax, however TurboTax additionally presents free submitting choices. FreeTaxUSA is usually less expensive for a less complicated tax prep expertise, whereas TurboTax presents higher imports and a slicker interface for a premium value.
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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