FreeTaxUSA At A Glance
You can choose between filing your state and federal tax returns through FreeTaxUSA or using the site as a resource to find a qualified tax preparer near you. If you want to prepare your own taxes, the site’s services are free. FreeTaxUSA also has a free filing assistant that will walk you through each step of the process and guide you thoroughly.
FreeTaxUSA is a great option for all types of tax filers. It makes the entire process as simple as possible, since it takes all of the guesswork out of it. The process is super fast, and the site is packed with valuable information and enables you to see whether you qualify for any tax deductions.
FreeTaxUSA even has a mobile app for your smartphone or tablet device. You can manage your accounts, check your balance and transfer your funds from anywhere.
There’s also a filing assistant that walks you through the entire process. It presents a series of questions and explains the information you need to enter to find the answers, and it offers advice throughout the process. It even has a feature for information that you may have missed. You can easily resume your filing, and you can even print all of your completed documents.
FreeTaxUSA COMPANY INFORMATION
FreeTaxUSA is one of the internet’s most trusted online tax software providers. It’s been providing quality, no-cost online tax preparation service for over a decade to millions of taxpayers across the country. As a result of their superior service and user-friendly software, FreeTaxUSA has earned an A+ rating with the Better Business Bureau.
With FreeTaxUSA’s TurboTax online tax filing software, you can complete and file your taxes for free without breaking the bank, spending all day in front of a computer, or hiring a professional. Their fast, paperless, and secure program is designed to eliminate the cost of using an accountant and to save you time and money.
FreeTaxUSA breaks down your tax return in to simple, bite-sized steps and provides an easy-to-use platform to help you to complete and file your taxes online. They also offer secure, encrypted online account access, free customer and technical support via toll-free phone, email, and live chat, and a number of tax filing extensions that will give you more time and options for filing your taxes.
FreeTaxUSA’s Big Features
The ultimate goal of a tax preparation service is to help Americans save money on taxes. However, there are many tax preparation software and many tax preparation consultants. Not all of them will correctly prepare your taxes, which will give you less money back when filing. It’s a bit confusing to know what tax preparation software or service is best for your needs.
That’s why you need to do your research when comparing tax preparation services and software. FreeTaxUSA vs. TurboTax will help you make an informed choice.
FreeTaxUSA is a tax preparation service that lets you prepare and file your federal state income tax return online for FREE. Furthermore, if you want to reinstate your lost or deleted return for the past year, you can do it for FREE.
FreeTaxUSA has tutorials in the form of videos. These videos are a great way to learn your way around the FreeTaxUSA system and, in the process, prepare your taxes for FREE. It’s like you have your own personal free tax lawyer.
The FreeTaxUSA and TurboTax tax preparation services are best for people who:
- Have basic tax returns
- Are preparing for their first time
- Are looking for the easiest way to prepare their taxes
- Are on a limited budget
Affordable Care Act
After countless hours of selecting the perfect plan, collecting supporting documents, and filing, we finally wrapped up our family’s ACA enrollment with much relief. Not too long after the process began in November, I came to the conclusion that taxes and health insurance rates were just going to be too expensive to pay out of pocket, and I knew we’d need to file for an ACA extension. We ended up filing a form 4868, which extended our 2012 taxes until mid-2015.
Right about the time we were ready to fully enroll, the IRS released the official ACA Tax Filing Form 1095A, which I printed out for my records and prepared to file with our extension request. I stumbled upon a thread on the FreeTaxUSA forum that also listed the new 1095A form.
I was intrigued by the simplicity of the add-on for the ACA extension. I downloaded the PDF file, saved it to my desktop, and filed our taxes. But then I decided to start a separate filing just to be safe. I just didn’t think I’d have everything I needed to complete the 1040ES without having to drive 40 miles to the IRS office. By the time I finished with that filing, I had invested another two hours and fifty minutes gathering supporting documents.
Refund and Payment Options
FreeTaxUSA offers several ways to file your taxes, including e-file, software, TurboTax coupons and other free filing options. The website even offers an extensive list of free tax tools and calculators, so you can still file and get your refund, even without paid options.
What you get with your paid tax filing package depends on the type of package you go with. For example, if you choose a 2012 version of a tax preparation package, you’ll be able to e-file up to five different tax types. The Basic package includes:
- W2, 1099, and 1098
- Form 1040A & Form 1040EZ
- Schedule A, B, C, D, E, F, G, H, I, J, K, and L
- Form w-2G, 1099-R, and 1099-MISC
Entering your taxes is super easy. When you get to the forms, you enter the Tax Income data. You don’t have to enter data for each entry, instead, you navigate through the list of pre-filled data.
You can also take a picture of your W2, 1098, 1099, or any other forms the IRS issues you and send them in with your taxes.
Filing After Deadline
If you’re still looking for a job, you may be eligible to file for an extension for your tax return. You can get an extended due date for your tax return when you cannot meet the filing deadline. This means that you have to file for the tax extension by the regular deadline of April 16th.
If you need more time to file your tax return, you have two options:
- File Form 4868 to request a tax extension by April 16th
- Get an automatic six-month extension of time to file, if you don’t want to make an estimate on your taxes
What happens if you don’t file for an extension by the deadline of April 16th?
You may face some serious consequences, if you fail to file a tax extension. All of your tax refunds, if any, will be held by the IRS until you present the tax return. If you still don’t file, then your federal income tax refund will be used to pay off the estimated taxes that you owe to the IRS.
Instead of making your entire tax payment by April 18th, file a tax extension online and pay only 22% of your tax due for every month that the tax return is overdue.
FreeTaxUSA has an Audit Assistance program that is a great resource for people who have a financial audit. The program offers resources to help people successfully pass an audit and stay out of trouble with the IRS.
It’s a pretty difficult and intimidating process if you have never gone through it before. That’s why we recommend you use a tax software program like FreeTaxUSA to make it easier.
The easiest way to use the program is to follow the step-by-step guide, which will take you through the forms and walk you through how to fill out your tax return. You can also download and print the e-file version of the program and work on the program away from your computer. You can print your forms and forms if needed.
Free Tax Calculator
The FreeTaxUSA tax calculator can help you estimate how your federal tax is calculated as well as your adjusted gross income. These are two of the most important tax calculations.
The information that you enter is based on the prior year’s tax form. This should help you get a better idea of what to expect.
Also, while this calculator can help you get a rough idea of how things are calculated, the tax code is so complex that you should always contact a certified tax professional if you have questions about how your tax is calculated.
FreeTaxUSA is an IRS approved electronic tax filing software that allows you to file your taxes online. This service has been guaranteed by the IRS to be accurate and has been reviewed and accepted by the BBB.
From a CPA?
Free Prep for Basic Returns
In my quest to reduce my tax bill for the tax season, I was looking for an alternative to H&R Block Tax Software. I had used that in years past, and while they offer a good service at a decent value, I am glad to have found FreeTaxUSA, an online tax prep service the offers both free and paid tax prep services.
FreeTaxUSA is a government sponsored website provided by the IRS and approved by the National Society of Accountants (NSA). And as the name suggests, is offers free tax help and filing service for individual returns. They handle your personal income tax return and don’t make money from the free. This means they have little or no room to charge for your tax preparation needs.
Free Prep for Basic Returns
How FreeTaxUSA Stacks up Compared to the Others
I decided to compare FreeTaxUSA with my previous tax prep application, H&R Block’s online tax software which is probably the most well-known online tax prep application. It offers both free and paid tax prep services.
So let’s take a look at the FreeTaxUSA vs. H&R Block Tax Software comparison.
First, let’s look at how much it costs for basic tax preparation and filing services.
FreeTaxUSA offers you two plans depending on your tax situation:
- Free Deluxe Plan
- Free Premium Plan
- Free Deluxe Plan is for people who did not itemize deductions on previous filing(s) and expect to have a tax refund from the government.
- Free Premium Plan is for people who expect to have tax payment due to the government.
The two plans are almost the same with only 1 major difference- the Free Deluxe plan covers all the possible tax scenarios involving a federal return. The Free Premium plan covers only 3 tax scenarios.
FreeTaxUSA is an IRS 501(c)(3) non-profit organization available to help American taxpayers. They were created by the Truevision Organization in 2000 to provide free tax preparation and tax filing services for low-to-moderate income taxpayers.
Not all taxpayers will qualify for their services. In order to determine whether you qualify, you’ll need to complete the Eligibility Quiz near the end of the FreeTaxUSA website. Those who are not eligible will be directed to the nearest VITA site or Tax Counseling for the Aging () site for free tax help.
The FreeTaxUSA community is primarily located in the United States, with help centers located around the country. As you fill out your profile, you can choose to have your return prepared by a volunteer preparer at one of the help centers. All documents are transmitted over an encrypted channel in order to ensure your privacy.
Want to know if you are eligible for FreeTaxUSA? Complete the Eligibility Quiz and find out.
The Deluxe Tax App from FreeTaxUSA lets you do your taxes on your phone or tablet.
The app is free but if you do your taxes with it, you have the option to get your refund as a cash back or as a direct deposit.
The refund is taxed so if you get the direct deposit option for your refund, you will get your money directly in your bank account.
Pros of Using FreeTaxUSA
If you’ve been hunting for a free tax software, you’re aware that there are several choices. FreeTaxUSA, however, stands out as perhaps the only free tax software that is truly designed for people who haven’t done their own taxes before.
In fact, the FreeTaxUSA website is designed to walk you through all the steps, from choosing what sections to e-file to where to bring your check. You can also print a step-by-step guide of how to use the website, just in case you lose your way.
Unlike competing free tax software, FreeTaxUSA is extremely flexible in how you can prepare your taxes. You can file all of your forms under a single return or you can file separate forms under multiple returns. Want to pay less into your retirement accounts? Just up your withholdings to cover taxes for these accounts separately.
Cons of Using FreeTaxUSA
While it is free to use FreeTaxUSA, it does come with some downsides. The first, and probably most significant, is that you cannot file your taxes without signing up for a paid subscription.
FreeTaxUSA tried to fix this by partnering with a company that offers a paid service through a network of certified preparers, but it wasn’t a complete solution.
- Free to access almost all basic tax filing services
- Can connect you with certified tax preparers through their partner network
- Have an option to sign up for an IRS online payment agreement
- Available on mobile and desktop devices
How Does FreeTaxUSA Compare?
Completing your taxes online can be easily accomplished with tools like Freedom Tax USA. By following an easy step-by-step system you can have your taxes completed in about 15 minutes. The best part of using an online tax program is the peace of mind you'll feel knowing your taxes are done right.
You can easily do your taxes with professional guidance so you may be asking yourself what's the difference between Freedom Tax USA and H&R Block, TurboTax, TaxAct, or TaxSlayer.
We'll start with the similarities. All of these programs allow you to file your federal and state taxes online and they all offer a free, online tax calculator that you can use to estimate your tax return before you start your program.
Now on to the differences.
How Much Do They Cost?
First, all of these programs are free for simple tax returns. For example, if you are no itemizing your taxes and have a very easy tax return, then you can use a program like TaxSlayer or H&R Block and your return will be free. If however, you itemize and you have some deductions you will need to pay after you complete your return.
Your return may be submitted electronically through FreeTaxUSA. FreeTaxUSA will walk you through the actual tax-filing process. When you’re done, you can print your tax return and e-file it right there with them.
Xero is a cloud-based financial software program that offers accounting packages to small businesses and self-employed entrepreneurs that do not require special software. It is available as an add-on to QuickBooks or as a standalone product.
Xero has grown to a business worth over 1 billion dollars since it was founded in 2007. It has over 500,000 customers in 190 countries and is one of the fastest growing accounting software companies. According to QuickBooks, the only company hosting tax returns online is TaxAct. FreeTaxUSA is not approved to e-File 1040 returns.