With tax season just around the corner, you may be exploring options to file your returns without burning a hole in your pocket. Tax preparation software that promises free filing seems tempting, but how do you know if they are legitimate and can be relied on?
TaxFreeUSA is one such free IRS-approved e-file provider that has been gaining steady popularity over the last few years. But is it secure? Can you trust it to accurately file your taxes? Does it have all the necessary features you need?
This comprehensive review aims to uncover everything you need to know about TaxFreeUSA’s credibility, features, accuracy, and ease of use. We will explore how it stacks up against paid competitors like TurboTax and examine what real users have experienced with this software.
Whether you have a simple or complex tax situation, are filing this year or need to file for previous years, or want added audit support – this unbiased TaxFreeUSA review will analyze all pertinent aspects in detail. By the end, you will have sufficient insights to determine if TaxFreeUSA is the right free tax filing solution for your needs.
The key aspects we will cover include:
- An in-depth evaluation of TaxFreeUSA’s legitimacy and security
- An unbiased look TaxFreeUSA’s features and functionality
- How accurate TaxFreeUSA is in filing returns
- User experiences with the software over the years
- How TaxFreeUSA compares with top competitors
So let’s get right to it and unravel the real truth behind this free tax filing software!
Key Takeaways: TaxFreeUSA Review – Is Tax FreeUSA Legit Tax Software?
- Legitimacy and Security: TaxFreeUSA, an IRS-approved e-file provider, is legitimate and secure, meeting IRS data security and storage standards.
- User Interface and Experience: While user-friendly and efficient for tax filing, the interface may appear dated compared to some competitors.
- Pricing and Features: Offers free federal filing with affordable state filing costs; Deluxe version provides additional audit assistance and support.
- Customer Support: Provides reliable customer support, though it may not be as extensive as some paid tax software.
- Suitability: Ideal for various users including self-employed individuals, but may not be the best choice for those requiring in-depth tax guidance or a premium user interface.
TaxFreeUSA is a credible, cost-effective solution for tax filing, suitable for a range of users, though it may lack some advanced features of paid services.
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Table of Contents
Is TaxFreeUSA Legitimate and Secure?
As an IRS-approved e-file provider handling sensitive financial information, TaxFreeUSA’s legitimacy and security features are probably most critical in determining if the software can be trusted.
TaxFreeUSA reassures users of its credibility right away by prominently displaying its authorization from the IRS to legally e-file federal tax returns. This means TaxFreeUSA meets all the latest IRS requirements in terms of data security, storage and transmission protocols to safely process returns.
- Founding: FreeTaxUSA was established over 20 years ago by a CPA, aiming to provide an affordable alternative to traditional tax preparation services.
- IRS Free File Alliance: As an original member of the IRS Free File Alliance and an authorized IRS e-file provider, FreeTaxUSA has securely filed millions of federal tax returns.
- Annual Software Updates: The software undergoes yearly updates by tax analysts to reflect the latest federal and state tax law changes, followed by stringent testing and approvals from the IRS and state authorities.
- Marketing Strategy: FreeTaxUSA relies on word-of-mouth rather than traditional advertising, emphasizing transparent pricing without confusing upselling.
- Product Offerings: The company offers only two versions of its service – Free and Deluxe – in contrast to competitors who often provide multiple, potentially confusing options.
Here’s a comparison table highlighting the differences between the Free and Deluxe versions of FreeTaxUSA:
| Feature | Free Version | Deluxe Version |
|---|---|---|
| Tax Filing Cost | Free for federal tax filing | Free for federal tax filing, $6.99 for Deluxe features |
| State Tax Filing | $14.99 per state return | $14.99 per state return |
| Live Chat Support | Not available | Available |
| Audit Assistance | Not included | Step-by-step audit assistance included |
| Amended Return | Additional fee required | Included in Deluxe |
| Ease of Use | User-friendly interface | User-friendly with additional guidance |
| Ideal For | Basic tax filing needs | Those needing extra help or have complex tax situations |
Specific security aspects that establish TaxFreeUSA’s credentials include:
- 256-bit SSL encryption to protect all user data and payment information
- Secure audit vaults to store tax returns as per IRS requirements
- Video and image verification to prevent fraudulent tax filings
- No storage of user data on local servers after filing
My Personal Experience Using TaxFreeUSA
- Affordable Tax Preparation: The appeal of FreeTaxUSA lay in its cost-effectiveness, offering free federal filing and budget-friendly state filing, contrasting with the higher cost of professional tax preparers.
- User Experience with the Interface: Initial apprehension gave way to ease of use, despite limitations in importing specific forms like the W-2, demonstrating FreeTaxUSA’s user-friendly interface.
- Convenience of E-Filing: The ability to e-file the return highlighted the convenience and efficiency of FreeTaxUSA, aligning with modern digital tax solutions.
Overall, the experience with FreeTaxUSA was positive, marked by ease of use and affordability, suitable for managing increased tax complexity.
Other user testimonials over the years also vouch for TaxFreeUSA’s security:
“I was hesitant to try a free tax software but TaxFreeUSA put all my concerns to rest with their robust security throughout. I felt fully confident submitting my returns online.” (Ben S., New York)
“With TaxFreeUSA, I know my data is encrypted at the highest levels so I never worry about any leaks. Safety of my family’s personal information comes first.” (Sarah D., California)
The company is also upfront about how users benefit from its free model – through referral commissions and no-obligation upsells. There is full transparency on these revenue channels which establishes further credibility in their systems and operations.
Here’s a summarized table explaining how FreeTaxUSA is able to offer its services at a lower cost and how it generates revenue:
| Aspect | Explanation |
|---|---|
| Low Overhead Costs | FreeTaxUSA has no physical locations, reducing overhead costs. |
| Minimal Advertising Expenditure | Savings from limited advertising are passed to customers. |
| Efficient Online System | Streamlined process for tax processing reduces expenses. |
| Revenue Sources | Earns from state tax returns ($14.99) and Deluxe edition ($6.99). Optional services, like using a portion of the federal refund to cover costs, include a fee ($19.99). |
FreeTaxUSA provides an affordable service, particularly beneficial for individuals like out-of-state landlords and self-employed people, due to its efficient and low-cost operational model.
With ample security provisions, trust from long-time users and an honest free platform model, TaxFreeUSA checks all the boxes in being a legitimate and reliable tax preparation software. I felt assured it is safe to file my taxes using this tool.
- Pew Research: A Third of Americans Say They Like Doing Their Income Taxes
- CFPB: Guide to filing your taxes
TaxFreeUSA Review – Features and User Experience
You know that taxes can be a pain. You also know that hiring a professional to do your taxes can be expensive. That is why people are flocking to FreeTaxUSA as a FREE tax preparation software.
Now that we’ve established TaxFreeUSA is secure and credible, how does it actually perform when it comes to accurately preparing and filing tax returns?
| Feature | Star Rating | Review |
|---|---|---|
| Ease of use | 4 | FreeTaxUSA is generally easy to use with a user-friendly interface and helpful resources. |
| Price | 5 | FreeTaxUSA offers one of the most affordable options for tax preparation software on the market. |
| Customer support | 3 | While customer support is available, it may not be as comprehensive as other tax preparation software options. |
| Forms and features | 3.5 | FreeTaxUSA offers a good range of forms and features for a basic tax preparation service, but may not have as many options as more comprehensive tax preparation software. |
| Overall rating | 4 | FreeTaxUSA offers a solid tax preparation software option with affordable pricing and user-friendly features. |
This table helps determine if FreeTaxUSA is the right fit for your tax preparation needs based on your specific situation and requirements.
| User Type | Suitability of FreeTaxUSA | Reasons |
|---|---|---|
| General Tax Filers | Good | Offers free federal filing, simple to use. |
| Low, Average, High Income Earners | Beneficial | Free federal income tax return for all income levels. |
| Self-Employed Business Owners | Suitable | Free federal filing, affordable state tax filing. |
| Filers of Prior Year Returns | Very Affordable | Access to all major tax forms and numerous deductions. |
| Professional Tax Preparers | Not Recommended | May lack advanced features needed by professionals. |
| Self-Employed Filers Needing Expert Help | Not Recommended | Lack of specialized support for complex tax situations. |
| First-Time Filers Needing Tax Expert Assistance | Not Recommended | Might find software less user-friendly, long customer service wait times. |
User Interface and Ease of Use
TaxFreeUSA shines when it comes to user experience. The interface is clean, simple to navigate and intuitive even for those filing taxes online for the first time. Convenient guides and FAQs are available if you do get stuck.
The easy step-by-step process involves entering your tax information, taking advantage of available deductions, reviewing for accuracy and then e-filing directly to the IRS. Additional nice touches include auto-save, multi-device access and unlimited corrections before filing.
Several users praise TaxFreeUSA’s well-designed interface:
“As a senior citizen filing taxes without an accountant for the first time, I found TaxFreeUSA so easy to understand and use even with my limited computer skills.” (Diane C., Florida)
“With TurboTax, I often get confused navigating between screens but TaxFreeUSA’s simple steps make tax prep almost fun!” (Michael B., Tennessee)
Accuracy of Tax Calculations
When it comes to computing tax liability and maximizing deductions, TaxFreeUSA displays meticulous accuracy and transparency. The tax summary clearly shows how each figure is calculated based on the information provided.
Any errors can also be easily fixed with unlimited amendments to your return prior to final submission. And should you have any doubts, TaxFreeUSA’s customer support is quick to address queries.
“I compared TaxFreeUSA’s tax estimates with my accountant’s calculations and found them just as accurate while saving so much money!” (Kevin R., New Jersey)
Features and Functionality
For a free tax software, TaxFreeUSA packs an impressive array of features including:
- Robust support for W2, 1099s, deductions, credits etc
- Student loan interest calculations
- Capital gains schedules
- IRA contribution tracking
- Estimated quarterly tax payments guide
- Prior year returns with up to 3 years of data access
- State tax return filing
- Free audit support via mail
The Deluxe package at $6.99 additionally unlocks expert support, unlimited amendments, passport photo creation and other handy extras.
Here’s a summarized comparison in a table format highlighting the strengths and limitations of FreeTaxUSA:
| Aspects | Strengths of FreeTaxUSA | Limitations of FreeTaxUSA |
|---|---|---|
| User Ratings | High average rating on TrustPilot (9.2/10). | |
| Suitability | Beneficial for self-employed or complex tax situations. | Not ideal for users needing a streamlined interface or mobile app. |
| Interface and Usage | User-friendly, simple interface for tax preparation. | Some aspects of the interface may not be as intuitive for first-time filers. |
| Pricing and Features | Cost-effective with a maximum refund guarantee. | Additional fees for state filing and Deluxe features. |
| Refund Options | Multiple refund options including checks, bank transfers, and prepaid cards. | |
| Tax Return Storage | Stores completed tax returns for up to seven years. | |
| Audit Support | Deluxe edition offers affordable audit support. | Base price does not include audit support. |
| Security | Excellent security options with additional PIN for e-filing. | |
| Mobile Accessibility | Good mobile website experience. | |
| Importing Documents | Manual entry required for W-2 and 1099 forms. | |
| Additional Support | Basic help documentation; may need external resources for detailed information. |
In summary, FreeTaxUSA is a solid choice for those comfortable with doing their own taxes, especially for more complex situations, offering affordability and simplicity. However, it may fall short for users looking for premium features or extensive assistance.
Several customers find TaxFreeUSA’s features sufficient for their tax situation:
“Whether reporting self-employment income or rental property earnings, TaxFreeUSA handled all my tax forms with ease.” (Christina D., Georgia)
The in-depth features analysis indicates TaxFreeUSA has all the key capabilities expected in a reliable tax preparation software. The free version itself should suffice for most straightforward filing needs.
How Does TaxFreeUSA Compare to Leading Tax Software?
Given TaxFreeUSA’s strong legitimacy, security and features – how does it stack up against the top players in tax prep software industry?
We compared it across key parameters with TurboTax and H&R Block – two of the most widely used paid tax filing solutions.
| Feature | FreeTaxUSA | TurboTax | TaxAct | TaxHawk |
|---|---|---|---|---|
| State Filing Cost | $14.99/state | Over $50/state | Varies (no live chat or phone support) | Sleek, easy-to-navigate interface |
| Audit Support | Available with Deluxe Edition | Requires an add-on | Not included | Better user experience |
| User Experience | Dated interface, information overload | User-friendly but can be confusing | No live chat or phone support | Sleek and uncluttered interface |
| Customer Service | Email and telephone support | In-person support, live chat available | Support ticket system | Streamlined filing process |
| Special Features | Itemized deductions in free version | Deluxe, Premier, or Self-Employed plans needed for complex filings | Cheapest option for basic needs | Best looking free tax filing platform |
This comparison provides an overview of the pricing, user experience, customer service, and special features of FreeTaxUSA compared to TurboTax, TaxAct, and TaxHawk. For more detailed information, please refer to the respective official websites of these tax software services.
Cost
Being a free filing software, TaxFreeUSA predictably has substantial cost savings over the paid options.
TurboTax’s online filing packages start from $69 (Deluxe version) going up to $170 while H&R Block’s software costs between $30 – $115 based on the plan.
TaxFreeUSA lets you file a federal return with a basic 1040 form completely free of charge. This itself is a big money saver for most tax filers.
IRS Free File: Do your Taxes for Free
Ease of Use
All three platforms have user-friendly, intuitive interfaces customized for tax filing with a simple step-by-step process guiding you through.
TurboTax perhaps leads the pack when it comes to user experience while TaxFreeUSA too gets good ratings on par with H&R Block.
So no major differentiators when it comes to ease of use but TaxFreeUSA’s free price makes it very attractive.
Features
TurboTax offers the most extensive features given its brand recognition and large development budget. But TaxFreeUSA covers all core features needed by most filers at no cost.
H&R Block lacks certain capabilities like support for foreign income that the other two provide.
For simple tax situations, TaxFreeUSA’s free features are sufficient while TurboTax leads on sophistications.
In summary, while TurboTax edges out as the best paid tax software, TaxFreeUSA firmly matches up to it in ease-of-use and key features while being completely free. For a large segment of users with straightforward tax filing needs, choosing the free TaxFreeUSA over paid software is a no-brainer!
Reliable Way To File Prior Year Tax Returns
Does TaxFreeUSA allow you to file previous years’ tax returns conveniently and accurately? This is a common need many taxpayers have so it’s important to analyze how TaxFreeUSA performs here.
The software supports preparing and filing federal returns up to 3 years back and state returns up to 1 year back. So you can rectify any mistakes or omissions from those previous tax years using TaxFreeUSA.
When filing previous years’ returns, you simply need to enter the relevant year’s tax information manually just like current year. All of TaxFreeUSA’s features like form support, accuracy checks, deductions guidance etc. work seamlessly.
Some key aspects about using TaxFreeUSA for prior year tax filing:
- Easy to enter previous tax years’ details with flexible data import options
- Correctly calculates back taxes owed including interest and penalties
- Adjusts deductions for previous years as per eligibility
- Lets you file state returns alongside federal returns
- Seamless integration with current year tax filing
Many users highlight positive experiences with TaxFreeUSA when filing old returns:
“I had 2 years of unfiled taxes due to job changes. With TaxFreeUSA, I could quickly file both old returns and get right with the IRS!” (Matt J., Ohio)
“Super easy to file taxes for last year that I forgot to do earlier. TaxFreeUSA automatically populated a lot of data saving me time.” (Linda T., Arkansas)
The capability to conveniently file taxes for the previous 3 years makes TaxFreeUSA very handy if you have lagged on doing those. It could help you claim missed out refunds or correctly reconcile back taxes owed.
The Best Online Tax Filing Software
Good Value For an Income Tax Software Program
With so many free tax filing options nowadays, does TaxFreeUSA still stand out when it comes to value? Let’s evaluate the quality of features and services you get for zero payment.
Cost Savings
The most tangible benefit is the ability to file your federal and state tax returns without spending a dime if you have a simple tax situation. Compared to other paid software charging at least $30-50 on average, the savings are substantial.
Features
Despite being free, TaxFreeUSA does not compromise on features. It covers all the core capabilities from W2s, 1099s, student loan interest deductions to capital gains, retirement reporting and more.
Advanced features like audit assistance, tax amendment help and the ability to file across state returns require a paid upgrade. But the included free features cater well to most tax scenarios.
Customer Service
Free software often scrimp on adequate support channels for users. But TaxFreeUSA again excels here with quality customer assistance available through email, phone and chat mediums without long wait times.
So on the whole, in terms of functionality breadth, available support and peace of mind, TaxFreeUSA delivers remarkable value without charging any fees. The quality and reliability is on par with many paid tax software, making it a real value for money choice.
Credit Cards: Convenience and Security
When it comes to making payments on TaxFreeUSA, a key aspect to examine is how credit cards are handled in terms of convenience and security.
TaxFreeUSA offers the ability to make state tax payments seamlessly via credit card as needed directly during the filing process. This saves you effort compared to manually calculating state taxes owed and paying afterwards.
The good news is you can use your credit cards to pay state taxes entirely for free – TaxFreeUSA does not charge any processing fees. This makes it very convenient without impacting your wallet.
In terms of security, all major credit cards – Visa, Mastercard, American Express etc. are supported and your card details are protected using bank-level encryption. You can rest assured there is practically no risk of your credit card data being compromised.
Many users find the credit card integration invaluable:
“I was pleasantly surprised TaxFreeUSA supported credit card payments for state taxes at no extra fees – saved me separate paperwork.” (Mark R., Virginia)
“With high security encryption, I had no worries using my credit card here – super seamless!” (Sarah F., Oregon)
The native integration for securely paying state taxes through your credit cards boosts the filing experience on TaxFreeUSA. It is a capability you would typically find only in premium software.
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Next Steps – Is TaxFreeUSA The Right Choice For You?
Our in-depth TaxFreeUSA review aimed to dissect all key facets of this growing free tax filing solution. Let’s recap the major findings:
- TaxFreeUSA’s full IRS accreditation and array of data encryption and protection policies establish its credibility and legitimacy for safely handling sensitive financial documents.
- The software excels in user experience with a clean interface, intuitive tax preparation guidance and error-free accuracy in computations.
- Core features for reporting income sources, maximizing deductions, previous year filing and state returns make TaxFreeUSA very capable for most taxpayers.
- TaxFreeUSA matches up well to paid competitors like TurboTax and H&R Block in ease-of-use and functionality while being free.
- For filers with basic tax situations, TaxFreeUSA is clearly the optimal way to file accurately and securely without paying a penny.
While TurboTax leads the market with its brand and sophistications, TaxFreeUSA firmly occupies the sweet spot of being reliable, full-featured and completely free.
For taxpayers looking to save money while still benefiting from robust tax filing capacities, TaxFreeUSA is undoubtedly the top choice. Even filers using paid software like TurboTax in the past are switching to this free yet powerful alternative.
So whether you have W2 earnings or self-employment income, homeownership deductions or just want to file previous years’ taxes, TaxFreeUSA proves to be an unbeatable free tax filing solution.
We highly recommend TaxFreeUSA if you are looking for professional-grade accurate tax preparation and efiling without spending anything. It outperforms other free tax software while rivaling the best paid ones making it a win-win for all tax filers.
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Note: The content provided in this article is for informational purposes only and should not be considered as financial or legal advice. Consult with a professional advisor or accountant for personalized guidance.
- Sharing the article with your friends on social media – and like and follow us there as well.
- Sign up for the FREE personal finance newsletter, and never miss anything again.
- Take a look around the site for other articles that you may enjoy.
Note: The content provided in this article is for informational purposes only and should not be considered as financial or legal advice. Consult with a professional advisor or accountant for personalized guidance.
