FreeTaxUSA Evaluation 2022: Is It Actually Free?


Are you a discount hunter searching for a approach to save cash whereas submitting taxes?

In that case, FreeTaxUSA serves up one of many lowest price tax software program merchandise in the marketplace. It gives free federal tax submitting, and low-cost state submitting, irrespective of how advanced your submitting scenario is.

FreeTaxUSA is not excellent software program, however it's usually a best choice for landlords, side-hustlers, and different filers with advanced submitting circumstances. Is it best for you?

We clarify the highest options and most notable drawbacks of FreeTaxUSA this yr that can assist you determine. See how FreeTaxUSA compares to the very best tax applications this yr, and see how we rank it in our FreeTaxUSA overview beneath. 

FreeTaxUSA updated logo
  • Federal submitting is at all times free, no matter your tax scenario
  • State tax preparation prices $14.99 per state
  • Deluxe Version ($6.99) contains Audit Help help

Sure, With Buy Of Deluxe Version ($6.99)

FreeTaxUSA Stroll-By Evaluation Video

FreeTaxUSA - Is It Actually Free?

Whereas "free" is within the identify, FreeTaxUSA would possibly nonetheless price you cash. The corporate does supply free federal tax submitting, however all filers pay $14.99 to file their state returns. The corporate additionally gives upgrades akin to audit help ($6.99) and help from knowledgeable ($24.99).

Regardless of its considerably deceptive identify, FreeTaxUSA gives a superb discount, particularly for customers who don’t qualify without spending a dime returns. Out-of-state landlords, facet hustlers, and self-employed individuals could all recognize FreeTaxUSA’s low price and usefulness.

What's New In 2022?

FreeTaxUSA confirmed marked enchancment with its navigation in 2022. The software program makes use of a mix of query and reply steerage and menu-driven steerage. This enables customers to get by the software program shortly but additionally guides customers by difficult elements.

The person interface continues to be a bit text-heavy. And the transitions between question-and-answer navigation sections to the menu navigation sections are abrupt. Nevertheless, low-jargon language helps customers by advanced submitting challenges like utilizing depreciation calculators on rental properties.

Does FreeTaxUSA On-line Make Tax Submitting Simple In 2022?

FreeTaxUSA gives bargain-basement pricing, however its pricing belies its high quality. FreeTaxUSA is high-quality software program that beats out most opponents which are priced in the midst of the pack. 

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 pains of tax submitting.

Nevertheless, FreeTaxUSA’s notable options akin to query and reply steerage, part summaries, and rolling return totals make the software program simple to make use of. The software program’s error dealing with additionally makes it powerful to skip sections.

Though customers could spend time keying data into the software program, FreeTaxUSA frees filers from essentially the most burdensome facets of tax submitting.

Notable Options

FreeTaxUSA isn’t premium software program, however it's loaded with glorious options that make it a discount contender. These are a couple of of essentially the most notable options.

Q&A Plus Menu Steering

FreeTaxUSA blends query and reply steerage with menu choice navigation. The blended method supplies oversight in trickier tax sections whereas permitting customers to breeze by irrelevant sections.

The one downside to this navigation fashion is the abrupt transitions. Customers could wrap up a query and reply section solely to search out themselves on a menu that they could not acknowledge.

Low-Value And Easy Pricing

FreeTaxUSA has one major pricing mannequin. Federal submitting is free. State submitting prices $14.99. Customers have the choice to improve, however the base worth is similar for all filers.

Part Summaries

FreeTaxUSA shows part summaries as customers undergo the software program. These summaries permit customers to see all their earnings, deductions, credit, and different components on the identical time. A easy look may help customers acknowledge that they could have skipped a bit.

Audit Help Out there

Audit help isn’t included with FreeTaxUSA’s base worth. However audit help is included on the Deluxe Version which prices simply $6.99. That is a discount for audit help in comparison with opponents.

Drawbacks

Though FreeTaxUSA gives loads of worth, it additionally has a number of drawbacks for customers in search of premium options. Listed here are a couple of shortcomings of the software program that you ought to be conscious of.

No Imports

Customers can't import W-2 or 1099 varieties into FreeTaxUSA. Customers should transcribe data from their tax paperwork into the software program. Sometimes, this takes just some minutes, however it's a downside for customers with a number of customary tax paperwork.

Should Pay For State Submitting

A number of corporations supply embody free state submitting for W-2 staff on their free tiers. However state tax return prep prices $14.99 with FreeTaxUSA, even on its Free Version. This isn’t an enormous worth to pay, however it might trigger some filers to pay barely extra with FreeTaxUSA.

Abrupt Transitions Could Confuse First-Time Filers

FreeTaxUSA’s method to navigation makes a variety of sense. It prevents display fatigue whereas guaranteeing that customers can entry all the things they want. Nevertheless, the software program abruptly transitions customers from the question-and-answer navigation to menu choices. Customers who aren’t aware of this sample could battle with the software program at first.

FreeTaxUSA Costs And Plans

The FreeTaxUSA method to submitting is simple. Federal submitting is at all times free, and state submitting prices $14.99 per state. Customers who need audit help pays additional, however you’ll by no means pay additional based mostly on the complexity of your submitting scenario.

How Does FreeTaxUSA Examine?

FreeTaxUSA is likely one of the hottest tax software program corporations, so our comparisons give attention to different widespread software program choices. TurboTax and H&R Block are each dearer than FreeTaxUSA however supply barely higher performance.

Nevertheless, all of those applications have a free tier. So we predict FreeTaxUSA tends to be higher for self-employed individuals, landlords, and individuals who lived or labored in a number of states which are skilled in submitting their taxes.

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FreeTaxUSA updated logo
TaxAct Logo
TaxSlayer logo

Unemployment Earnings (1099-G)

Dependent Care Deductions

Retirement Earnings (SS, Pension, and many others.)

Small Enterprise Proprietor (over $5k in bills)

$0 Fed &
$14.99 Per State

$0 Fed &
$39.95 Per State

$6.99 Fed
& $14.99 Per State

$24.95 Fed & 
$44.95 Per State

$24.95 Fed
& $39.95 Per State

$34.95 Fed 
& $44.95 Per State

$44.95 Fed
& $39.95 Per State

$64.95 Fed
& $44.95 Per State

$54.95 Fed
& $39.95 Per State

Cell

How Do I Contact FreeTaxUSA Help?

FreeTaxUSA clients can entry fundamental buyer help by logging into their account and sending a message. The corporate says that they usually reply to questions inside half an hour. It's also possible to ship an e-mail to help@help.freetaxusa.com.

With the Deluxe Version, you additionally get "Dwell Chat with Precedence Help." At this degree, you get to leap to the entrance of the queue to talk instantly with a tax specialist. Chat help is on the market Monday - Friday, 10 AM to 9 PM Japanese (ET).

It seems that FreeTaxUSA can also be persevering with to supply low-cost superior help from tax preparers akin to CPAs or Enrolled Brokers (EAs). In our take a look at of FreeTaxUSA, we once more discovered a “Professional Help” add-on that may very well be bought for $24.99.

FreeTaxUSA ProSupport in-app screenshot from our review

It needs to be famous that FreeTaxUSA is not presently promoting Professional Help on its gross sales pages, so we're uncertain if this characteristic will probably be going away. However for now, we're nonetheless seeing it contained in the software program.

The Professional Help service permits customers to speak and display share with professionals who can present particular steerage for filers. If it continues to supply it, FreeTaxUSA doubtless has the lowest-cost skilled recommendation add-on in 2022.

Is It Secure And Safe?

FreeTaxUSA has not suffered from any main safety dangers. Its credentials show that it meets safety requirements set for tax submitting corporations. It encrypts knowledge at relaxation and requires multi-factor authentication. Analysis didn't reveal any historic safety breaches. By all requirements, customers ought to belief FreeTaxUSA when submitting their taxes.

Nevertheless, even customers who belief FreeTaxUSA ought to know that their knowledge is at some degree of threat. FreeTaxUSA may very well be focused by hackers, and a knowledge breach might expose private data. That is at all times a threat when customers have interaction with internet-based software program.

Is It Price It?

FreeTaxUSA is a good mix of high quality and value. In the event you don’t qualify without spending a dime tax submitting, FreeTaxUSA is probably going the bottom price choice for you. It’s not very best for inventory and crypto merchants, however different filers are prone to discover that the software program meets all their wants.

The one main downside to FreeTaxUSA is the shortage of W-2 import performance. We'd love for FreeTaxUSA to start out importing and pre-populating varieties for customers. This may ease administrative burdens and assist customers file sooner. Till that occurs, customers might want to determine if the low price is price the additional headache of transcribing varieties.

Attempt FreeTaxUSA right here >>>

FreeTaxUSA FAQs

Listed here are some widespread questions we get about FreeTaxUSA:

Can FreeTaxUSA On-line assist me file my crypto investments?

In the event you solely traded one or two tokens, you need to use FreeTaxUSA to file your returns. You’ll must search for the US Greenback foundation of the commerce, however you'll be able to key within the trades. Nevertheless, energetic crypto merchants will need to look elsewhere. Typing in dozens of trades into FreeTaxUSA is unlikely to be an excellent use of time.

Can I request my stimulus verify by FreeTaxUSA?

Tax filers who didn’t obtain all of their stimulus cash can appropriate the error by FreeTaxUSA. The software program calculates how a lot a person is owed based mostly on the Rebate Restoration Credit score. Be aware that this credit score solely applies to the third stimulus cost which was issued in 2021. In the event you didn’t obtain your first two stimulus funds (issued in 2020), you may have to file a 2020 tax return.

I didn’t obtain the complete quantity for Superior Baby Tax Credit score Funds. Can FreeTaxUSA assist me get the remainder?

Sure, FreeTaxUSA gives strong steerage for folks who didn’t obtain the complete quantity for his or her Superior Baby Tax Credit score Funds. These mother and father can report what they obtained, and FreeTaxUSA will be certain that the IRS makes up the shortfall.

Do I've to make use of a self-employed tier for my facet hustle?

No, FreeTaxUSA prices all customers the identical quantity, irrespective of the complexity of their submitting scenario. Federal submitting is at all times free and state submitting at all times prices $14.99 per state.

Does FreeTaxUSA supply refund advance loans?

FreeTaxUSA isn't providing refund advance loans in 2022.

Does FreeTaxUSA supply any offers on refunds?

No, FreeTaxUSA is not presently providing any offers or incentives related to refunds.

Is FreeTaxUSA professional?

Sure! It is a widespread tax software program preparation firm that has been in enterprise since 2001.

Are TaxHawk, FreeTaxUSA, and 1040Express owned by the identical firm?

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 mostly cheaper in worth than TurboTax, however TurboTax does supply free file as properly. The massive distinction comes all the way down to ease of use, and getting the help you need.

FreeTaxUSA Options

Included with Deluxe Version ($6.99)

Sure, from TurboTax, H&R Block, or TaxAct (Free)

With Deluxe Version ($6.99)

Deduct Charitable Donations

help@help.freetaxusa.com

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