FreeTaxUSA Review
Cost-conscious filers of any complexity level who want truly free federal filing without restrictions, and do not need premium hand-holding or extensive import features.
FreeTaxUSA has quietly become one of the most respected names in online tax filing by delivering on a simple promise: free federal tax preparation for everyone, regardless of income or tax situation complexity. While competitors restrict their free tiers to the simplest returns, FreeTaxUSA offers every IRS form and schedule at no cost for federal filing. The only charges are $14.99 per state return and an optional $7.99 Deluxe upgrade for priority support.
The software has been operating since 2001 and has prepared over 100 million tax returns. It is a TaxHawk Inc. product and is an IRS-authorized e-file provider. Despite its budget positioning, FreeTaxUSA accuracy and form coverage are on par with products costing $100 or more. The software handles everything from simple W-2 returns to complex self-employment, investment, rental property, and multi-state filing scenarios.
The trade-off for free pricing is a more basic user experience. The interface is functional but lacks the visual polish and guided hand-holding of TurboTax or H&R Block. Import options are limited, so you will likely enter more data manually. Help content exists but is less comprehensive than premium alternatives. For filers who know their tax situation reasonably well, these trade-offs are easy to accept given the savings.
FreeTaxUSA has earned a loyal following among savvy filers, personal finance communities, and tax professionals who recommend it to clients with straightforward situations. It is frequently cited on Reddit and personal finance forums as the best value in tax software, and it consistently receives high marks in independent reviews.
Pricing
Free (Federal)
- All federal tax situations covered
- W-2, 1099, and all income types
- Itemized deductions (Schedule A)
- Investment income (Schedule D)
- Self-employment income (Schedule C)
- Rental property income (Schedule E)
- All IRS forms and schedules
- Federal e-filing included
State Return
- State e-filing for one state
- Additional states $14.99 each
- State-specific deductions and credits
- Automatic state data transfer from federal
Deluxe (Add-on)
- Priority support via chat and email
- Audit Assist with professional representation
- Amended return filing support
- Live chat support
- Extended customer service hours
Pros
- Genuinely free federal filing for all tax situations, including self-employment, investments, rental income, and every IRS form
- State returns are only $14.99 each, the lowest among all major tax software providers
- No upselling or pressure to upgrade during the filing process since all federal features are already free
- Handles complex tax situations competently including Schedule C, D, E, K-1, and foreign income
- Clean, distraction-free interface that loads fast and does not waste time with animations
- Has been providing free federal filing since 2001 with a proven track record of accuracy
- Deluxe add-on for priority support and audit assist is only $7.99
Cons
- User interface is basic and utilitarian compared to TurboTax and H&R Block, with minimal visual design
- Limited import options with very few direct connections to employers or financial institutions
- Contextual help and explanations are less detailed than premium competitors
- No mobile app available for smartphone filing; mobile experience is browser-based only
- No live tax professional support in the free tier; only available with the $7.99 Deluxe upgrade
Features
| Feature | Included | Notes |
|---|---|---|
| Federal e-filing | Free for all situations | |
| State e-filing | $14.99 per state | |
| W-2 photo import | Manual entry required | |
| Direct import from financial institutions | Very limited partners | |
| Itemized deductions (Schedule A) | Included free | |
| Investment income (Schedule D) | Included free | |
| Self-employment income (Schedule C) | Included free | |
| Cryptocurrency tax reporting | Included free via Schedule D | |
| Rental property income (Schedule E) | Included free | |
| Audit defense | Deluxe add-on ($7.99) | |
| Prior year data import | ||
| Mobile app filing | Browser-based mobile site only |
Our Verdict
FreeTaxUSA is the undisputed value champion of tax software. If you are comfortable entering your data manually and do not need premium guidance, there is no rational reason to pay $100+ for another product. The $14.99 state return is a small price for a complete, accurate tax filing experience.
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