FreeTaxUSA Review: Free Federal Taxes – Self-Employed
FreeTaxUSA is blunt about its primary attribute: This tax filing service is free for federal e-file, even for more complicated taxes like those who are self-employed. The site provides step-by-step instructions on how to prepare your taxes on your own before you reach the payment section and can be used by all taxpayers whether they are self-employed or not.
The program makes it simple to create an account and only charges once you successfully file your return, so there’s no risk in trying this free federal taxes option. Sign up with FreeTaxUSA today and pay less next tax season!
How to use FreeTaxUSA
The free version of FreeTaxUSA has a lot of neat features, but they all have one thing in common — they’re meant to make doing your taxes less painful. They’ll remind you when it’s time to file your tax return, help you import and export information from other services like TurboTax or H&R Block (so you can transfer data without starting over), and guide you through different tax scenarios if yours isn’t listed on their site.
Even if there are forms that don’t apply to your situation, FreeTaxUSA will still walk you through them so that you get more comfortable using e-file in general. If your taxes are simple enough for Free Tax USA to handle without having any supplemental materials handy, it’s a good option for e-filing.
There are a few caveats with using FreeTaxUSA, however. For starters, it’s not designed for people who earn more than $66,000 per year; if you’re in that bracket and have complicated taxes, you’ll have to pay for a plan instead.
The other thing to consider is that although federal e-filing is free, filing state taxes still costs $18.99 through Free Tax USA — at least until March 2019 when they expect to offer it for free as well.
While some people find they don’t need or want to file their state taxes on top of their federal taxes, others prefer to get both done at once so they can be sure they haven’t missed anything important.
At $18.99, Free Tax USA might not be worth it if you only need to file one state return, but if you use your federal return as a base for your state returns and don’t need anything beyond what’s available through Free Tax USA, it can be convenient — especially because of its price.
If you’re looking for guidance beyond that offered by IRS guidelines or general advice on how to fill out your taxes properly, a paid service like TurboTax might be a better option. The best tax preparation solution will depend on what’s in your specific situation and may vary from year to year as well. That said, we think that when most people just want to file their taxes quickly without paying too much or being too inconvenienced, Free Tax USA fits their needs nicely.
Free Tax USA is great for filing your federal taxes if you’re self-employed, especially if you’re just starting out and are still getting used to how everything works.
If you want more than that or need help with state taxes as well, a service like TurboTax is better. For simple returns, though, it’s worth considering; it may not offer as much guidance as other paid services do but it’s nice to know that federal e-filing is available without paying any extra fees.
The pros and cons of FreeTaxUSA
For those who are self-employed, FreeTaxUSA is one of two free tax e-filing services that allow you to file as a sole proprietor. The other is TaxAct, which doesn’t offer state tax filing unless you pay for it.
That said, it’s worth noting that if you’re only filing federal taxes and living in one state, neither of these options will save you any money over commercial tax sites like TurboTax (which offers a promotion for $5 off) or H&R Block at Home (which lets new users file their federal and state returns for free). Those programs have additional perks that can be a boon if your business needs to grow beyond its single location.
FreeTaxUSA – bottom line: For those who have fairly simple taxes and can’t afford (or are just not interested in) spending a lot of money on tax prep, FreeTaxUSA is a great choice. You won’t get customer service or state returns for free, but that’s understandable at no cost.
The interface may not be intuitive for first-time filers either, so we recommend checking out their support guides before you launch your return. You might also want to use a different software service to prepare next year’s taxes since there’s no guarantee that Freetaxusa will still be free by then. However, there’s nothing better if you want to file as a sole proprietor.
5 tips for using FreeTaxUSA
This year, millions of Americans will pay for tax preparation services, but many of them don’t need to. The IRS has a free option called FreeTaxUSA that can help you prepare and file your taxes online, plus it’s not limited to people with simple tax situations. If you’re self-employed or have investments or rental properties on your tax return, FreeTaxUSA could be a great fit for you.
Here are five tips for using FreeTaxUSA:
1. Do your research before signing up. Each year, there are thousands of complaints about mistakes made by FreeTaxUSA, so be sure to do your homework before signing up and putting yourself at risk for an audit or penalty.
2. Check out your eligibility. While FreeTaxUSA is free for federal e-file, there are some restrictions you should be aware of before signing up. If you’re married, both you and your spouse must each have income, or if you file as head of household (which means you live with your dependent children), everyone who claims a personal exemption on your return must also have income from last year—you can’t file as head of household if only one parent worked.
Also, note that single parents cannot use FreeTaxUSA; it’s for married people with spouses who work and dependents such as children or grandchildren.
3. Customize your taxes to make them easy. If you have a complicated tax situation, FreeTaxUSA might not be right for you. Be aware that you can also only file federal taxes with FreeTaxUSA, so if you have state or local income taxes as well, you’ll need to pay for another service that offers free filing of all returns. If you do choose to use FreeTaxUSA, though, be sure to enter all relevant information on your tax return so it’s accurate and easier for someone else (like an accountant) to work with later.
4. Remember that FreeTaxUSA does not offer customer support. With commercial services such as TurboTax and H&R Block, you can call up customer support in case something goes wrong—but FreeTaxUSA customers have no such option; they must rely solely on email should they run into trouble while using their software. Some users say they’ve waited weeks to hear back from an email inquiry without any response; others say they’ve received help within days or hours after submitting their request.
You don’t have many options here, but you’re covered by FreeTaxUSA’s 60-day guarantee: If you’re unsatisfied, give it one year to get your refund processed. If they don’t honor that guarantee and process your refund within 60 days of when they accepted your return, FreeTaxUSA will refund 100% of what you paid them. One more thing: Be patient! It’s going to take a little time to fill out forms and understand how everything works before filing online.
5. Be aware of FreeTaxUSA’s limitations. FreeTaxUSA may be free, but it also has its fair share of limits—and a few hidden costs you’ll want to be aware of before signing up. For example, many users say they received their refund checks months after filing because there’s no guarantee on how long it will take to process your tax return.
Additionally, if you are missing information from last year’s tax return that would make filing your taxes easier (such as Form W-2 or 1099-R), be prepared to pay for those forms in full; FreeTaxUSA does not provide them for free as TurboTax does.
Frequently asked questions
Are you a freelancer?
Did you get fired and move back in with your parents? Are you an independent contractor or do you own your own business? If any of these statements apply to you, then congratulations – at least one aspect of your life is extremely complicated.
It’s especially complicated if you are self-employed and file taxes quarterly (I know, it’s a pain), but we won’t go into that now. If you fall into any of these categories, FreeTaxUSA is here for you! It has special pricing structures for all kinds of people including recent grads; full disclosure: I don’t fall into any category listed above.
Is it free?
Yes, for all federal e-filing. This can be a little confusing, so let me break it down for you. With FreeTaxUSA, you will file your taxes completely online through their secure website. You can file all of your personal federal taxes (that includes some business tax forms as well) without paying anything!
That is 100% free – no fee at all to use their site and prepare your federal return. In fact, they’ll actually pay you $10 to prepare and e-file both state returns! If you live in a place with state income tax like California or New York, that bonus jumps to $25!
- Free Tax Software Reviews -:
- Who are these people?
- What experience do they have?
- How does it work?
- What are my options for filing?
- How do I get started? What about state taxes?
- Do I need a third party to help me with my taxes?
- Can I use FreeTaxUSA if I have complex tax returns?
- Should I consider other tax software instead of FreeTaxUSA?
- Can non-US citizens use FreeTaxUSA’s services?
- What is their customer service like?
- Will they protect my data from hackers and identity thieves?
- What is FreeTaxUSA going to cost me?
- Where can I find that information?
- Are there any extra fees or penalties?
Where can I see some screenshots of how it works or an example return done by FreeTaxUSA? Is FreeTaxUSA really free (or really not)? Does using FreeTaxUSA actually hurt my credit score or somehow negatively affect my overall financial situation in any way, shape, or form whatsoever?!
Is there anything else you should know before starting your taxes with Free Tax USA 2020 Edition? Any final thoughts on how reliable Free Tax USA 2021 Edition has been for previous users like yourself who used its services just last year? If so please share them here.
- What’s your verdict?
- Where can I read more about Free Tax USA?
- What are people saying about Free Tax USA, and why should I trust their opinions?
- Are there any other FAQs I should know about before using Free Tax USA 2021 Edition?
Anything else you want to say on how good it is to use their service for preparing federal income taxes entirely free for all Americans thanks to them including a link here with that statement.
- Why is Free Tax USA a good option for Americans in 2016, who are looking to file their taxes completely online without having to pay anything at all?
- Why should I choose Free Tax USA 2021 Edition over any other comparable service out there such as TurboTax or H&R Block Deluxe?
- In fact, why do some people prefer using Free Tax USA 2021 Edition instead of professional tax preparers?
- How is using Free Tax USA better than going to a local IRS office and saving some money on your taxes that way instead of using their service?
Finally, any last thoughts you have on how good it feels to use their services for filing your taxes for free. If so please share them here.