As the name of the company suggests, FreeTaxUSA is a free tax software that files simple-to-advanced federal tax returns at no cost.
“Everyone can file their federal taxes for free, regardless of complexity, age, or income level,” says FreeTaxUSA’s Director of Marketing, Matt Gause. “The software guides you through each area of your taxes, helping you get the biggest refund possible.” In our FreeTaxUSA review, we will go over everything you need to know about the free tax software.
Everyone can file their federal taxes for free, regardless of complexity, age, or income level,”
An Overview of FreeTaxUSA
Founded in 2001 by a CPA and a team of professional software developers, FreeTaxUSA is one of the fastest growing tax websites online today, says Gause. Owned by TaxHawk, Inc., the company is an authorized IRS e-file provider. Gause says, “We’ve filed over 18 Million tax returns, and we have over 84,000 positive reviews from our customers.”
How does FreeTaxUSA work?
Research reveals that taxpayers get the same tax refund using FreeTaxUSA as they would be receiving on TurboTax, explains Gause. But by using FreeTaxUSA, he adds, customers don’t have to upgrade and pay more to file their federal taxes.
“This means customers with itemized deductions, self-employment income, or other complex returns can file their federal return without paying anything.”
He adds that the company’s state filing cost is also very low compared to other services. “Instead of paying $30-$40 to file a state return, state returns are only $12.95 on our service.”
Customers also own their data when they use FreeTaxUSA. “This means customers can come back and print or download a tax return later in the year without paying a fee. Some other services require sharing of your personal data with third parties to file for free, but our service keeps your data safe and any auxiliary products are directly related to your tax refund,” explains Gause.
Services offered by FreeTaxUSA
FreeTaxUSA offers the following services for free:
- Federal Tax Return
- Customer Support
- Printable Tax Return
- Tax Extension
- Extension filing
- Small business filing
State tax returns come with a.$12.95 charge.
The Deluxe Edition $6.99 (Deluxe is an optional service that gives the user unlimited amended return filing, audit assist, and priority support.)
* Prices can change at any time. Visit FreeTaxUSA’s profile for the latest list of services and prices.
How long does FreeTaxUSA typically take to get a return?
Customers get their refund as fast as possible using e-file and direct deposit on FreeTaxUSA. Gause adds, “It should be noted that refund speeds depend on the type of tax return filed and the processing time of the IRS, which can vary.”
What are the pros and cons of FreeTaxUSA?
Compare the pros and cons to make a better decision.
- Easy to use
- Free for federal taxes
- Information is carried forward each year so you don’t need to re-enter data
- Customers can control the tax filing process with topic lists and a navigation bar, or they can follow the interview process and answer one question at a time.
- Straightforward pricing for state taxes or deluxe services
- No CD product to install on the computer
- No phone number support (email only)
How to use FreeTaxUSA
1. Visit their website and click on “Start 2017 Return.”
2. Create an account.
3. You’ll need to fill in your email address, create a username and password, and add your cell phone number.
4. Next, set up a few security questions.
5. Then, you have the option to verify your email address either now or at a later date.
6. Next, answer questions about last year’s taxes and whether or not you used TurboTax, TaxAct, or H&RBlock tax services. If you answer yes, you have the option of transferring last year’s tax information via PDF.
7. Here’s what you can do if you decide to import a PDF. You need to import a PDF file downloaded directly from the tax software you used last year. This portion of FreeTaxUSA is a new feature and still in beta.
8. At this point, you’re invited to take a tour of the site, add an extra layer of security by using a two-step verification process, and shown how to can use the tool bar at the top to skip steps if you prefer. Or you can simply continue the process of filing your 2017 taxes.
9. Next you’re asked to fill in basic information including name, occupation, address, etc.
10. On the same page, you’re asked a series of yes or no questions.
11. You will then fill in your filing status such as married, filing jointly, single, etc.
12. On the next screen, you will enter information about your spouse.
13. Next, you’ll answer questions about dependents and qualifying children.
14. If you do not have any children or dependents, the next section asks you to input your W2s. If you don’t yet have them, you can still continue.
15. You’re then asked to fill in any other income, including what’s known as “Common Income.” This includes such income as interest and dividend income, unemployment compensation, Social Security income, etc. Lower down on the same page, you will answers questions regarding “Business and Rental Income.” At the bottom of the same page, you will answer questions regarding “Uncommon Income.” See below for examples:
16. The next step is to enter any IRA contributions that you made during the year, if any.
17. The following page shows you your “Standardized Deduction.” FreeTaxUSA then asks you to continue and enter “Itemized Deductions” if you choose. FreeTaxUSA will determine which one gives you a larger return. Or you can simply accept the standardized deduction and continue.
18. FreeTaxUSA then walks you through itemized deductions
19. The next portion of the application asks you about health insurance.
20. The two following screens ask about current students in the family paying tuition, student loan interest, and whether or not there are any teachers in the family.
21. After the education questions, you will answer questions about the Earned Income Tax Credit.
22. After deciding whether or not you qualify for the Earned Income Credit, you will answer questions about the Home Energy Credit.
23. After this, answer any of the questions regarding childcare deductions and then shown the results of your itemized list. After reviewing your information, FreeTaxUSA will prompt to ask if you’d like to try the “Refund Maximizer.” And who wouldn’t, right?
24. At the final step, you’re given your Federal Tax Summary.
Now you have a good idea of how FreeTaxUSA works, you’re ready to give it a try. Click here for more details about FreeTaxUSA, including real user reviews. If FreeTaxUSA is not a good fit for you or your business, read the reviews of other leading tax preparation firms.