FreeTaxUSA Review 2021 (Pro, Cons, and Actual Cost)

FreeTaxUSA Review

Tax preparation can be difficult if you don’t have the right resources to help you along the way. FreeTaxUSA is one such resource. Here you will find an unbiased FreeTaxUSA review. The following information was collected by a third party with no monetary incentive from FreeTaxUSA.

What Is FreeTaxUSA?

In 2001, TaxHawk, Inc. developed a website that helped users with online tax preparation. This website became FreeTaxUSA, one of the fastest-growing tax services ever.

FreeTaxUSA allows users to file their federal taxes with the IRS quickly and easily.

Most importantly, it does this for free!

FreeTaxUSA is IRS-approved, which makes it one of the most reliable services if you are looking to get help when doing your taxes. The FreeTaxUSA software is also constantly updated to ensure that all the latest tax filing regulations are being taken care of.

In fact, the IRS approves the software every time a new update is released. Peace of mind!

Some of the most popular tax services provided by FreeTaxUSA include:

Extension Tax Filing
Military Taxes
Self-employed Taxes
1099 Taxes
State Taxes.

To date, the FreeTaxUSA website has filed over 43 million tax returns successfully.

Is FreeTaxUSA Actually Free?

FreeTaxUSA offers two editions for users to use – Free and Deluxe. Almost all kinds of federal tax returns can be filed for free without having to pay any money to use the services.

Other than a few special tax returns, such as foreign employment income or nonresident alien returns, the Free Edition allows you to file all major tax returns.

Overall, federal tax return, e-file, customer support, printable tax return and tax extension services are free of cost on FreeTaxUSA.

However, if you are looking to file a State Tax Return, you will need to pay a fee of $12.95.

If you wish to use the Deluxe Edition of FreeTaxUSA, you will need to pay a one-time fee of $6.99.

Am I Eligible To Use FreeTaxUSA?

You can use the FreeTaxUSA website to file your tax returns if you are either a US citizen or a resident alien. If you are a nonresident alien, you cannot use the FreeTaxUSA website to file any of your tax returns.

FreeTaxUSA Pros

FreeTaxUSA works proactively to keep itself updated with the most recent tax changes to ensure that the users get the best benefits. If you are considering using FreeTaxUSA or wondering if it is a good option for you to try, here are the pros of using FreeTaxUSA to file your tax returns.

Both Free and Paid Versions cover multiple Tax Schedules

Filing taxes can be quite tough when you use platforms that don’t offer you multiple tax schedules. You often end up using different forms and platforms to file your taxes.

FreeTaxUSA solves this problem.

Whether you choose to use the service free of cost or opt for the Deluxe edition, you will still have access to multiple tax schedules. This helps save time and effort, which would have otherwise been lost in figuring out how to complete your tax returns paperwork.

Accessible forms are the same for all editions

For both the Free and Deluxe edition, accessible forms are the same. This means that you wouldn’t need to worry about missing out on certain tax schedules if you do not choose to pick the Deluxe option. From the form 1040 to investment income, homeownership information, rental property income and more, both the free and paid versions allow you access to all editions.

The only form that you do not have access to in the free version is the State Tax Return form. However, this too can be accessed only at a nominal one-time price of $6.99.

Free Support

Tax preparation is confusing, tricky and tiring. You often miss out on important documents or are not aware of how you can file for tax returns for a certain concern. This is where the free support offered by FreeTaxUSA comes into play. They offer free support via two options – Email and Account Message Center.

The support agents available on FreeTaxUSA are industry professionals that come with years of experience in the subtle art of filing taxes successfully.

These support agents are quick to understand your problem and can get back to you on how to proceed further in under thirty minutes.

Once you create an account on the FreeTaxUSA website, you can also access all your support tickets via a simple interface.

Guarantees

Quite possibly the most attractive feature on the FreeTaxUSA website is the multiple guarantees they offer.

When you choose to prepare and file your taxes using the FreeTaxUSA website, they guarantee that they will help you get the biggest tax return possible. They work closely to help you identify the multiple tax returns that you are eligible for and prepare all documents that are required to get you the biggest return.

Apart from this, they also offer guarantees on two other things.

Your federal return, whether simple or complex, will always be free of any cost imposed by FreeTaxUSA. Plus, they also offer 100% guarantee on tax calculation.

This means that if the IRS puts a fine or penalty on you on account for inaccurately filed taxes, the penalty and interest will be paid by FreeTaxUSA.

Also, if you find any other service that can help you get a bigger tax return than FreeTaxUSA, they also guarantee to refund your purchases as well as refund your amended tax return.

Help with Audits

FreeTaxUSA also offers an Audit Assist feature where you can get help in the unfortunate scenario that the IRS puts you under audit.

If you are audited, it essentially means that the IRS has put you under the scanner and will take necessary measures to go through your personal or organizational documents and accounts.

In short: They think you owe more money. You may have to find more cash, or (if you’ve committed fraud) you could go to jail.

To help you out in such situations, the FreeTaxUSA website offers an Audit Assist feature where they will give you guidance on what to expect when the IRS officials arrive.

The FreeTaxUSA website offers you the direct assistance of Audit specialists who will help you prepare. However, they will not represent your case.

This Audit Assist feature is only available to those users who choose the Deluxe Edition of FreeTaxUSA.

Ease of Use (Interface)

Tax filing is tough. The software you choose to carry out your tax preparation shouldn’t be. If you are looking for a platform that is easy to use and won’t confuse you every step of the way, FreeTaxUSA is the way to go.

The software is simple to use since it offers a clean user interface and helpful guides and indicators all along the way.

From signing up and creating an account on the website to submitting all papers of your tax return, you will be taken through the process seamlessly. The easy-to-use interface also allows you to track your tax returns after you have filed them. This includes features such as ‘Check E-File Status’, ‘Where’s My Refund’, and ‘Print/Download My Return’.

Security

Since FreeTaxUSA is certified by the IRS itself, the website is incredibly safe and reliable to use. The website takes the matter of security very seriously and ensures that all your data is always safe and secure.

This is made possible by the use of data encryption, where every file or data that you enter on the website will be safely encrypted. This means that no one else will be able to read the files that you upload. And that’s just the start of their security protocol.

The FreeTaxUSA website also uses other security measures such as active account monitoring, secure IRS transmissions and more. This is done so that all your financial information, as well as personal identifiable information, is always kept confidential. They also make other verifications via the use of DigiCert, TRUSTe and SecurityMetrics.

Online Backups

If there’s anything more overwhelming and stressful than filing taxes, it is having to file them again and again due to technical errors or missing information. When filing tax returns, it is very important that you have all relevant information in your hands so that you do not have to start from ground zero every time you begin to file your taxes.

This is where FreeTaxUSA does a fantastic job by offering regular and secure online backups.

In case of any technical errors when filing taxes, you wouldn’t need to start the entire process from scratch. All the data that you had previously uploaded are safely backed up online, which means that the data remains safe.

Plus, if you used FreeTaxUSA in the previous year and wish to refer to your data when filing your new tax returns, FreeTaxUSA allows you to do so very easily.

All the info you need is right there, at your fingertips!

FreeTaxUSA Cons

Even though FreeTaxUSA is one of the most easy-to-use and comprehensive tax filing platforms available to US citizens or professionals working in the US, the platform comes with its drawbacks as well. You should always measure pros and cons thoroughly before making a decision.

Some Tax Situations Are Not Supported

While FreeTaxUSA allows you to file tax returns for almost all major forms, there are still others that are not available on the platform.

These tax situations include:

Archer MSAs
Household Employment Taxes
Taxes for children with over $2,000 investment income
Sources of foreign income
Prior year tax credit
At-risk limitations
Farm rental and installment sales.

If you are looking to file tax returns for any of these tax situations, FreeTaxUSA is not the platform for you.

Customer Support is Limited

One of the biggest pros of FreeTaxUSA is the free support that the platform offers. The experts get back to you about your query within half an hour and can give you significant guidance and support in your tax preparation. However, customer support is still limited.

You wouldn’t be able to get a complete road map of how you should proceed with the process. They can’t look over your shoulder every step of the way.

So, if you are very poor with filing taxes or require high-level guidance to help you, FreeTaxUSA might not be the best platform for you.

Many upsells and extra (small) costs

The FreeTaxUSA platform also comes with many upsells where you will need to pay a small cost to use an advanced feature.

For example, if you are looking to file a State Tax Return, you would not be able to do so on the Free Edition of the FreeTaxUSA website. You will need to pay an extra cost of $12.95 to be able to do so.

If you are not interested in such small extra costs that might come along the way when using FreeTaxUSA, you might want to steer clear of this website.

What About Federal Tax Returns?

FreeTaxUSA allows you to file Federal Tax Returns of both the simple and complex kinds. Regardless of the Form 1040 version you are using, your tax filing status or the income that you earn, the FreeTaxUSA allows you to seamlessly file taxes in a simple and straightforward way. This no-fuss website allows you to file Form 1040, 1040EZ and 1040A. They also offer highly accurate filings and guarantee that if you are penalized for inaccurate tax filings, the penalty, as well as the interest, will be paid by them. Additionally, they also offer an Audit Assist feature in the unfortunate scenario that you are audited.

What About State Tax Returns?

The Free Edition of the FreeTaxUSA website doesn’t allow you to file any State Tax Returns for free.

However, you can still go ahead and do the same by paying a fee of $12.99. The FreeTaxUSA website has a separate section for this where you can make the payment and then go ahead to use the feature.

What Does FreeTaxUSA Actually Cost?

On the face of it, the FreeTaxUSA website is free to use. Numerous incomes such as W2, Jury Duty, Unemployment, Social Security, Royalty, Alimony, Grants, Scholarships, Farm and more can be included in the simple federal tax returns. You can do so free of cost, where you only need to sign up and create an account on the website to proceed ahead. That being said, the FreeTaxUSA website is still not completely free to use.

You cannot file State Tax Returns without paying a fee of $12.99. Plus, you will also need to pay the fee of $6.99 for the Deluxe Edition if you are looking for added features or faster and dedicated customer support.

The FreeTaxUSA website also comes with numerous upsells and extra costs, which might be just a small fee but can still be quite annoying.

Free Edition vs Paid Edition: A comparison

There are only minor differences between the Free Edition and Deluxe (Paid) Edition of the FreeTaxUSA website. The Free Edition allows you to access numerous tax filing forms such as federal tax return, e-file, customer support, printable tax return and tax extension.

All major tax filings such as Form 1040, 1040EZ and 1040A can also be filed in the free option.

On the other hand, the Deluxe Edition offers you all of these Free Edition features along with other services. These services include priority and dedicated customer support along with a live chat option, unlimited amended returns and Audit Assist.

This Deluxe Edition can be obtained at a one-time fee of $6.99.

Is FreeTaxUSA Legit?

The FreeTaxUSA website has been developed with care and precision by the TaxHawk group. FreeTaxUSA is an IRS-certified service that allows you to prepare your tax returns as well as file them. Any changes made to the software of FreeTaxUSA are reported to the IRS, which then conducts a quality check and certifies it to be used by the consumers. FreeTaxUSA also has an A+ rating with the BBB (Better Business Bureau).

What Are The Best Features of FreeTaxUSA?

Clearly, the FreeTaxUSA website is a legit, secure and user-friendly platform that allows you to prepare your taxes in a straightforward and no-fuss way. While it comes with a few drawbacks as well, we must also focus on the benefits that it provides. Here are the best features of FreeTaxUSA.

Refund Maximizer Tool

The one thing we all look for when filing our taxes is to try and get the maximum possible returns in a legal and fair way. FreeTaxUSA guarantees to help you get maximum returns using their Refund Maximizer Tool.

If you find any other platform that can get you returns higher than FreeTaxUSA, the company promises to return your paid charges as well as amended tax returns.

Abundant In-App Help Icons

When filing taxes, it is important to do so in a no-fuss way since the entire process can be very complicated and tricky. Owing to the abundant in-app help icons, you can constantly access guidance and other information on any topic that has become an issue for you.

Ease of Entry

The FreeTaxUSA platform is incredibly user friendly and is very easy to use as well as navigate. All you need to do is create an account on the website and you can get started with filing your tax returns. The simple and clean user interface allows you to find every feature easily without getting flustered about the entire process.

Excellent Knowledge Base

Apart from the in-app help icons, which pop up as and when you need guidance or help, the FreeTaxUSA platform also comes with an extensive knowledge base. With information on a wide variety of tax filing situations, FreeTaxUSA helps you get better at filing your taxes. It also has a comprehensive knowledge base on Audits, which helps you get information in the unfortunate scenario that you get audited.

FreeTaxUsa vs TurboTax

If you are a confident tax filer who doesn’t need a lot of guidance and assistance, FreeTaxUSA is a good option for you since it is cheaper than TurboTax.

It is also good if you are willing to handle your audits with just a little bit of information and guidance.

The user interface of FreeTaxUSA is simple and allows you to file for a wide variety of tax versions without requiring step-by-step instructions.

However, if you are looking for extensive guidance, need help with multiple complicated situations and are willing to shell out a little more money, you might want to go with TurboTax.

While simple tax returns can be filed for free on TurboTax, you will need to go for the paid version in case you wish to file for tax returns involving rental properties, small businesses, etc.

FreeTaxUSA vs H&R Block

While FreeTaxUSA has a Free Edition as well as a Deluxe Edition, H&R Block offers all of its features for free. It allows you to search for tax information, use the ACA Calculator, and more for free. But, it doesn’t offer other advanced features and services such as amended returns, audit support, e-file federal tax returns, tax extension filing and much more.

Other Business Tax Software

Other Business Tax Software in the market that you can look at are TaxSlayer and TaxAct.

Pros and Cons Roundup

Finally, a quick roundup of the pros and cons of the FreeTaxUSA software can help you make an informed decision about whether this service is good for your needs and preferences when filing tax returns or not. Both the Free and Deluxe Editions of FreeTaxUSA cover multiple Tax Schedules and also allow the same forms to be accessed. FreeTaxUSA also offers free support where your queries are answered within half an hour.

Plus, FreeTaxUSA also offers a money-back guarantee for accurate and maximized tax returns. Other than this, FreeTaxUSA also provides guidance and information on audits.

FreeTaxUSA is also IRS-certified and offers end-to-end data encryption to keep your data safe and secure.

Lastly, all your tax returns are also backed up online automatically so you won’t lose any information in case of a technical error. FreeTaxUSA also allows you to import your last years’ tax returns filings from other business tax platforms such as TurboTax or H&R Block.

Compared to the pros of FreeTaxUSA, the cons are few but can make quite a difference in your decision if these cons affect you heavily.

FreeTaxUSA doesn’t offer the service to file taxes for cases such as Archer MSAs, Household Employment Taxes, taxes for children with over $2,000 investment income and more.

The customer support might be quick and agile but it is not extensive and they won’t provide you step-by-step guidance in filing taxes.

FreeTaxUSA Review 2021 (Pro, Cons, and Actual Cost)

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