$6.99 for Deluxe plan
$0 (with a free plan)
Last Updated: February 24, 2021
$6.99 for Deluxe plan
$0 (with a free plan)
Email, account message center
Maximum refund and 100% calculation accuracy guarantee
Support response time:
On average within 30 minutes
FreeTaxUSA is an e-filing tax software that is regarded by many to be one of the cheapest ways to file taxes online. The majority of FreeTaxUSA reviews focus on its long list of services, as well as a competitive pricing system.
What is FreeTaxUSA?
FreeTaxUSA is online tax preparation software launched in 2001. In their FreeTaxUSA reviews, clients claim this platform is one of the best IRS-approved e-file providers, and there are several strong reasons behind this. It’s reliable and straightforward.
FreeTaxUSA provides free tax filing for federal taxes and is inexpensive for state ones. The platform also offers refund and calculation accuracy guarantees.
In the majority of FreeTaxUSA.com reviews, clients express their satisfaction with filing prior-year tax returns online. It’s also quite simple to get a copy of last year’s tax return for free from the IRS, even if you weren’t a FreeTaxUSA user before.
The FreeTaxUSA extension costs nothing, which is another winning feature of this website. Once you file Form 4868, you apply for a six-month extension. The process takes just a few minutes. As soon as the IRS approves the extension, you’ll receive an email.
FreeTaxUSA is one of the best places for self-employed users to handle their taxes online. The platform covers health insurance costs and vehicle expenses. As confirmed by many positive FreeTaxUSA reviews, it supports home office, self-employed income, and freelance income forms, which was especially relevant during peak remote work.
The list of free features that FreeTaxUSA offers is second to none. Importing prior years, tax return backup, itemized deductions, charitable donations, and filing history all come at no cost. Other platforms only allow these filings for users with a premium or an advanced plan. FreeTaxUSA, on the other hand, doesn’t insist on upgrading to the Deluxe plan for this.
In addition, FreeTaxUSA provides the following 1099 forms for free:
- 1099-R (retirement)
- SSA-1099 (social security)
- debt cancellation (both 1099-A and 1099-C)
- 1099-S (home sale)
Finally, it’s important to emphasize that this tax software provides a free import if you previously used a competitor platform. FreeTaxUSA prior year taxes are preferable but switching from TurboTax, H&R Block, or TaxAct is easily doable.
FreeTaxUSA Mobile Version
The mobile version of FreeTaxUSA is browser-based, so it supports both iOS and Android. The absence of a FreeTaxUSA app is a massive downside, and some complained about poor user experience on smaller screens. While the situation is somewhat better on tablets, it’s clear that the desktop is the best tax prep software version and the intended way to use this platform.
FreeTaxUSA Pricing and Plans
Let’s start off with two questions on everyone’s mind:
How much does FreeTaxUSA cost?
Is it really free?
There are two FreeTaxUSA plans you can choose from — free and Deluxe. The free version has no recurring costs and only charges its users $12,95 per state tax return.
If you live in one of the nine states with no income tax and opt for the base version, then yes, the platform is free. Then again, different states and even countries have different tax rates.
The Deluxe, on the other hand, costs $6.99. For this price, you get a live chat with priority support, which is available Monday – Saturday, from 8 AM to 12 AM (ET). Other than that, you’ll also receive step-by-step assistance for audits. Lastly, regardless of their number, every FreeTaxUSA amended return is free of charge with the Deluxe Edition.
Another thing worth mentioning in our FreeTaxUSA review is that additional services on the free version come with a fee. An amended tax return costs $14.99, a tax return copy — $6.99, and a printed and bound tax return —$12.99. All this comes in handy if you need to formally submit or present your tax returns to a bank, a potential partner, or an investor.
FreeTaxUSA Customer Reviews
If you’re still wondering whether FreeTaxUSA is a scam, it’s important to stress that it has over 43 million filed tax returns. It’s also an authorized IRS e-file provider, with an A+ BBB rating.
FreeTaxUSA users have left more than 280,000 reviews — 99% recommend this tax software. The average customer rating is 4.8/5.
Here’s what users liked about FreeTaxUSA:
- Free federal filing
- Great for self-employed people
- Cheap state filing
- IRS red flags as reminders
But there are also a few things they disliked:
- No Life Events feature
- Clunky user interface
- Audit-assist feature available only for Deluxe users
- No mobile app
The best way to assess the position of FreeTaxUSA in the industry is to weigh it up against its closest competitors.
FreeTaxUSA vs TurboTax
In comparison with TurboTax, there are several things to note in our review of FreeTaxUSA. Unlike the latter, TurboTax doesn’t charge for state filings. However, once you add a state, the cost of TurboTax increases to $40/state. On FreeTaxUSA, it remains $12.95/state.
The audit support on FreeTaxUSA is available with the Deluxe Edition. TurboTax, on the other hand, requires an add-on. So, neither platform’s base version includes that.
FreeTaxUSA IRS advantages come from itemized deductions, capital gains income, and self-employed income filings, which are part of the free version. With TurboTax, you’ll need either the Deluxe, Premier, or Self-Employed plan.
FreeTaxUSA vs TaxAct
TaxAct has four plans:
- Free: $0 federal, $4.95 state
- Deluxe: $24.95 federal, $44.95 state
- Premier: $34.95 federal, $44.95 for state
- Self-employed: $64.95 federal, $44.95 for state
As other FreeTaxUSA reviews point out, apart from the state tax filing, TaxAct is more expensive in every other aspect.
TaxAct requires the Deluxe for itemized deductions, the Premier for rental property income, and the Self-employed for freelance income. The FreeTaxUSA free version includes all of these.
TaxHawk vs FreeTaxUSA
In terms of pricing, the free version of TaxHawk is almost identical to that of FreeTaxUSA. Both platforms charge nothing for federal taxes and $12.95 for state returns. The same goes for the Deluxe Edition, which costs $6.95 on either platform.
It’s worth mentioning in our FreeTaxUSA review that the most significant difference is the TaxHawk’s Pro Support plan, which is $24.99. Pro Support offers personal tax advice, phone support, and live screen share.
Both platforms provide access to investment income, itemized deductions, and rental property filings in their free versions.
H&R Block vs FreeTaxUSA
When compared against H&R Block, one of the biggest FreeTaxUSA complaints is the lack of free state tax filing. This feature costs $12.95 on FreeTaxUSA. On the other hand, both platforms offer federal tax filing for free.
FreeTaxUSA users get audit support with the Deluxe plan, while H&R Block has an add-on for this service. In other words, neither online tax filing service offers this feature in its base version. For multiple states, nonetheless, the charges are $12.95/state on FreeTaxUSA and $36.99/state on H&R Block.
Itemized deductions, capital gains income, and self-employment income are included in the FreeTaxUSA’s free version, while H&R Block users need either the Deluxe or Premium plan.
To sum up, FreeTaxUSA is one of the simplest, most economical tax software platforms. Its federal taxes are completely free of charge, and even the state taxes are far cheaper than those of its competitors. In addition, FreeTaxUSA is convenient for self-employed users. That said, the user interface can be a bit clunky, and there’s no proper mobile app. Lastly, even though some of the platform’s features are locked behind the paywall, the Deluxe plan is a great deal.
- Easy to use
- Free federal and cheap state returns
- IRS red flags
- Priority support with live chat (FreeTaxUSA Deluxe)
- Audit assistance (FreeTaxUSA Deluxe)
- Direct e-filing to the IRS
- State returns are not free (except for income tax-free states)
- Clunky navigation (a hybrid between guided and self-guided)
- Complex process for filing crypto investments
- No Life Events feature
Is FreeTaxUSA legit?
FreeTaxUSA is entirely safe to use. You can even find it on the IRS site under the Free File Software Offers. Apart from that, the platform has over 43 million filed tax returns so far. Finally, as other reviews of FreeTaxUSA say, the company’s operated with no major problems since 2001.
Is FreeTaxUSA safe?
FreeTaxUSA is safe, and all data it handles is encrypted and sent through secure IRS transmissions. The verification goes through TRUSTe, DigiCert, and SecurityMetrics to increase safety further. Also, FreeTaxUSA owns physical data centers. The facilities are locked and monitored 24/7.
Where can I file my state taxes for free?
Platforms like H&R Block and TurboTax don’t charge for state tax filing. However, they do charge more for the Deluxe, Premium, and Self-employed plans compared to FreeTaxUSA. Multiple-state tax filing also costs extra.
What bank does FreeTaxUSA use for fees?
FreeTaxUSA uses the Civista bank to process its refund client transfers. The tax preparation fees can be deducted from the federal refund. An intermediate bank receives the refund, deducts the fees, and sends the remainder into your bank account.
Is FreeTaxUSA really free?
The base version charges $0 for federal and $12.95 for state tax filing. According to many FreeTaxUSA reviews, the platform can be entirely free of charge if you live in one of the no-income-tax states.