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TurboTax vs FreeTaxUSA

Compare TurboTax and FreeTaxUSA to see if free federal filing can match premium software. Side-by-side pricing, features, and form support for 2025 tax filing.

7
TurboTax wins
1
Ties
4
FreeTaxUSA wins

TurboTax

The most popular tax software in America with the richest feature set, best data imports, and most polished user experience. Commands premium pricing for its comprehensive guided filing process.

FreeTaxUSA

A free federal filing option that supports all major tax forms and schedules. Charges only $14.99 for state filing. Has been in operation since 2001 and handles complex returns despite its no-cost federal tier.

Feature-by-Feature Comparison

CategoryTurboTaxFreeTaxUSAWinner
Federal Filing Price$0-$129 depending on tierFree for all situations
State Filing Price$59 per state$14.99 per state
Total Cost (Deluxe + 1 State)$128$14.99
Forms SupportedAll federal forms and schedulesAll federal forms and schedules
User InterfacePremium guided experience with contextual tipsClean but basic interface; less hand-holding
Data Import (W-2)Auto-import from 1M+ employersManual entry for most W-2s; limited import
Brokerage ImportDirect import from all major brokeragesCSV upload supported; no direct integration
Expert HelpLive CPA/EA access (TurboTax Live from $139)Deluxe tier ($7.99) adds live chat with tax experts
Audit SupportIncluded; full representation for $59+Audit Assist available for $39.99 add-on
Accuracy GuaranteeMaximum refund + $10,000 accuracy guaranteeAccuracy guarantee with penalty reimbursement
Mobile ExperienceFull-featured native mobile appMobile-responsive website; no dedicated app
Overall ValuePremium experience at premium priceExceptional value; 90%+ of features at a fraction of the cost

The Verdict

FreeTaxUSA is the best value in tax software, offering free federal filing with the same forms and schedules as TurboTax at $0-$129. TurboTax justifies its premium with superior imports, expert access, and a polished interface. If you are comfortable entering data manually and do not need live CPA access, FreeTaxUSA saves you $100+ with no sacrifice in accuracy.

Choose TurboTax if...

Filers who want the easiest possible experience, those with complex brokerage accounts needing direct import, and anyone willing to pay for live expert review.

Choose FreeTaxUSA if...

Budget-conscious filers who are comfortable with basic data entry, anyone filing simple to moderately complex returns, and filers who want to keep as much of their refund as possible.

Frequently Asked Questions

How can FreeTaxUSA afford to be free?
FreeTaxUSA generates revenue from state filing fees ($14.99 per state), optional add-ons like Deluxe ($7.99) and audit support ($39.99), and interest on refund advances. Federal filing has been free since the company launched in 2001.
Is FreeTaxUSA safe and legitimate?
Yes. FreeTaxUSA has been an IRS-authorized e-file provider since 2001 and is owned by TaxHawk, Inc. They use bank-level encryption and are SOC 2 certified. Over 10 million returns are filed through their platform annually.
Can FreeTaxUSA handle Schedule C and self-employment?
Yes. FreeTaxUSA supports Schedule C, Schedule SE, and all self-employment forms at no additional cost for federal filing. You will need to enter income and expenses manually since it lacks the automatic import from accounting software that TurboTax offers.
What do I miss by not using TurboTax?
The main things you give up are automatic data import from employers and brokerages, the polished step-by-step guidance, a dedicated mobile app, and integrated live CPA access. The tax calculations and form support are equivalent.
Can I import my prior TurboTax return into FreeTaxUSA?
Yes. FreeTaxUSA can import prior-year returns from TurboTax and H&R Block in PDF format. This carries over personal information and some financial data to save you time during setup.

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