FreeTaxUSA Review: A Suitable $0 Option For Most Filers, But State Returns Cost Extra

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• With FreeTax USA Software - Product Name Only, federal returns are free regardless of how advanced your needs, but one state return is $14.99.
• Some competing tax software providers offer free federal and state returns for simple tax situations.
• FreeTaxUSA is missing a few nice-to-have features, like the ability to talk with a tax professional or upload documents for quicker data entry.
• See Personal Finance Insider's picks for the best tax software »

Hiring a CPA to file your taxes can cost a pretty penny. So you'll just file your own taxes online, right?

Well, depending on which tax-preparation software you use, filing online can be more expensive than you think.

For example, there can be a cost to filing online if you're deducting the interest paid on student loans. Oh, you own a rental property? You'll pay a little more. Are you a freelance worker? You'll pay even more.

So if you're filing on a tight budget, which software should you use? One of the least-expensive options is FreeTax USA Software - Product Name Only. You'll be able to prep and file your federal return for free, and add on a state return for a low price. The platform is easy to use, though it is missing a few nice-to-have features, including the ability to talk with a tax professional and upload documents to save time on data entry. 

Here's a look at how FreeTaxUSA works, how much it costs, and who it's best for.

Editor's rating	4.1 / 5
Review summary	FreeTaxUSA is free, unless you need to file a state return. The interface isn't as advanced as higher-end competitors, but it is satisfactory for first-time and experienced filers alike.
Cost of DIY filing	$0  +$14.99 per state
Details	Clean and modern interface Upgrade to priority customer support for $6.99 Easy prior-year return import, but no document upload
Free version covers	Most tax situations
File with FreeTax USA Software - Product Name Only

Who Should Use FreeTaxUSA?

FreeTax USA Software - Product Name Only provides quality software, especially considering the cost, though the user interface isn't as advanced as TurboTax or H&R Block. 

You'll be able to access the basics with FreeTaxUSA. If you value low prices over a super convenient experience and don't need one-on-one help from a tax expert, then it's a strong choice.

Is FreeTaxUSA Really Free?

Based on its name, you can probably deduce that one of FreeTaxUSA's main selling points is that it's free to e-file your taxes. Despite the company's name, though, only federal tax returns are free. State returns cost $14.99. 

You also have the option to pay $7.99 for the Deluxe edition. This upgrade will grant you access to priority live chat customer support, audit assistance, and unlimited amended returns. Deluxe may be worth it if you have a complicated tax situation or if this is your first time filing online.

How Does FreeTaxUSA Work?

FreeTax USA Software - Product Name Only's homepage, one thing might confuse you. It looks like FreeTaxUSA offers four plans: simple, basic, advanced, and self-employed. That isn't the case.

The website is just showing that you'll still file your federal returns for free, regardless of your tax situation. It's mimicking the offerings typically shared by other tax-prep sites.

Are you a homeowner? It's free. Are you self-employed? It's free. Do you have rental income? Well, you get the picture. There's only one platform that meets the needs of almost every filer. There are only a few situations it doesn't support, including foreign earned income, nonresident alien returns, and filers living outside the US.

The prep process is similar to what you'll find in other software. You answer a few questions and move through all the relevant tax forms where you can manually input your income and see if you qualify for certain deductions or credits. There are explainers of tax concepts along the way, and the software will perform the calculations. Eventually you'll see your estimated tax refund or tax bill. 

Is FreeTaxUSA Reliable And Safe?

FreeTaxUSA keeps your information secure with data encryption. It also requires multi-factor authentication every time you log in to verify your identity.

When it comes to calculating your taxes owed or expected refund, FreeTaxUSA is reliable. 

What Are The Downsides to Using FreeTaxUSA?

While you can import prior-year returns to pull in some information automatically, one of the biggest downsides to FreeTaxUSA is the inability to upload tax forms like a W-2 or 1099 from your computer or a bank. If you have multiple streams of income or investment sales, automatic data entry can save considerable time.

You might come across online customer reviews in which users grumble about FreeTaxUSA not really being free since you have to pay for state returns. Even so, you're still probably going to pay less with FreeTaxUSA than most big-name tax prep companies if you have to file multiple tax forms.

However, TurboTax, H&R Block, and TaxSlayer offer free plans with free federal and state returns in some cases. So if you qualify to file with their free plans, there's no need to spend money with FreeTaxUSA. Plus, the bigger-name brands have more developed user interfaces, so you could end up paying less and having a more convenient experience — including document upload capabilities — if you qualify for free filing.