Many people file their own taxes using one of the many tax filing softwares. These usually come with a price tag, but there are a number of options to file for free which we’ve listed below.
Two important things to note. First, some free options might offer federal filing at no cost, yet they’ll tack on a fee if you have them file your state taxes; keep an eye out for that. Second, free filing could work well for a typical, uncomplicated W-2 employee. Those with more complicated tax filings might elect to pay a tax professional instead – do your research and decide which is best for you. Moreover, many of the free offerings don’t support scenarios like multi-state filings, foreign earned income, and other complicated filings.
- [Link] IRS partners with 14 different tax software companies to offer free filing for those with AGI of $66,000 or less. Remember, you might make $80k+ and still have an AGI of $66k after deducting 401k contributions and similar deductions. This is only for federal filings. The following states provide a free state tax return in partnership with private software companies via the Free File Alliance: AR, AZ, DC, GA, IA, ID, IN, KY, MA, MI, MN, MO, MS, MT, NC, ND, NY, OR, RI, SC, VA, VT, WV.
- [Link] VITA/TCE Those making less than $54,000 can get in-person help with their taxes under the VITA program. All seniors can get help too under the TCE program. More details here. AARP also has a similar program for those 50 and older, details here.
- [Link] UnitedWay and H&R Block partner to offer a deluxe filing package free for those with AGI of $66,000 or less. This covers both federal and state taxes. H&R also offers free filing on basic returns here.
- [Link] Credit Karma offers free tax filings both federal and state. (List of Supported Forms) Just be aware they do use your data to upsell products to you.
- [Link] TurboTax offers free federal filings for 1040EZ/1040A filings. They advertise that state filing is included free as well. To boot, you can go through the Southwest portal and get 1,000 miles when using TurboTax, even when doing the free version.
- Capital One is offering free premium H&R Block filing software if you agree to provide your tax data to Capital One. Log into your Capital One account to see if you’re eligible for this deal.
- [Link] FreeTaxUSA offers free federal filing. State filing is $13, but you can get half of that back from the portal. Many readers in the comments consider FreeTaxUSA a great option.
Interestingly, people have reported getting different results when plugging their numbers into various softwares (??). Please comment below with your suggestions, experiences, and thoughts on which is best. We’ll add any additions if there are any.
THANK YOU for the article and for everyone who suggested FreeTaxUSA. I just used them for the first time instead of filing by paper, and it was a breeze. I tried Turbo Tax out at the same time, and it got my tax liability wrong by a few thousand.
Also, FYI, any Alabama residents can file for free at MyAlabamaTaxes.alabama.gov. It’s very easy to use.
I moved from Turbo tax to tax act 5 years ago as they were reasonably priced.
Last year I paid 29 for fed + 2 states. This year i had 1 state and turbo deluxe was 66, tax act was 53.. Switched to freetaxusa and did everythign in 13. honestly freetax usa is exactly same as what tax act 2 years ago. Only additional effort is you have to type w2 numbers instead of software pulling it for you.
Now tax act is neights here nor there, it questions are still more complex than TT tax specifically for state taxes. and it is no longer cheap. I won’t be surprized if they fall back to cheaper model next year.
TaxAct was great for about 8 years until they had the terrible idea of charging money. Last year I used FreeTaxUSA and I am pleased with them. They also answered a couple of questions.
Which one is free or cheap to file a carrying over negative balance investment, I have a tons to deduct for years to come. I don’t do any trading this past year, but I still carrying that negative balance.
Turbox tax premier seem way too expensive as I don’t even trade anything.
I would be interested if anyone knows of a tax software/website that supports Form 1042-S. I did a pretty thorough search and couldn’t find any yet.
I also got one. TurboTax support suggests to treat it as a 1099-INT: all you need is the payer name/address and the interest paid.
I’ve never paid a penny to file my own taxes, and you shouldn’t either. TurboTax Freedom Edition is the way to go!
Chuck , thanks so much for posting this information. As an active VITA volunteer, I’ve come to know about the many free options for filing your taxes, yet many people are seemingly unaware of these resources (or are bamboozled into paying more by shrewd advertising). First, I’d like to echo the comments of other DoC readers – FreeTaxUSA/TaxHawk is a phenomenal software, particularly for those who know what they are doing when they file taxes. It’s light, straight-forward, comprehensive, and doesn’t force you to walk through tax scenarios that you know don’t apply to you. Moreover, their summary pages are incredibly clear and well laid-out, even allowing you to generate PDF previews of individual forms and worksheets, in addition to a completed 1040. It may be helpful to note in your post that FreeTaxUSA is BOTH available through IRS Free File (i.e., part of the Free File Alliance) AND as a direct service through their website. As reader Josh noted, DIY Tax is another free software that’s available online for free tax filing, both federal and state. It’s not my favorite software (mainly because of its lack of total transparency regarding its Liberty Tax Service ownership), but it is an option. You mention both VITA and TCE, but you should also mention AARP Tax-Aide, which is a similar program to TCE. You can find more information about the AARP program here: https://www.aarp.org/money/taxes/aarp_taxaide/ I should note, though, there is an AARP site locator tool on the webpage that loads from your VITA/TCE hyperlink. It is also perhaps worth mentioning that both the IRS and many state Departments of Revenue offer free fillable forms that allow you to e-file on their government websites at no cost. They are definitely not as comprehensive as tax software programs, but if you know what numbers to place on which lines, the fillable forms will do the basic calculations for you. I’ve utilized free fillable forms to file my state taxes for free the last couple of years. You mention that the Free File Alliance only provides free state tax returns for specific states. This is incorrect. There are some software programs (like FreeTaxUSA) that allow you to file a free state return for any state via IRS Free File, provided you qualify for the service based on the criteria laid out by the software programs. Finally, for those who claim they get different refund results when plugging the same numbers into various software programs, there are two explanations for this: (1) They entered information wrong on one software program (2) Different assumptions are made by different tax software programs when they walk you through the tax scenarios and fill out the 1040 (essentially, there are differences in the tax software decision trees). For example, on my tax return this year, I need to claim part-year health insurance coverage and part-year non-Marketplace health insurance exemption. FreeTaxUSA guides you through this scenario seamlessly and automatically. H&R Block, however, makes it fairly difficult for you to do this… Read more »
I’ll add AARP, thanks
Ian
The Free File thing I copied out of the IRS website.
In my area (mid Hudson valley, NY) AARP tax aid never had an age requirement. They team up with United Way to offer the program in my area, perhaps that is why?
Note the wording on the AARP link you added “especially those 50 and older”
When you call in to set up an appointment they do an “interview” intake questionnaire but age is never requested. Total income is also not requested/limited but source(s) / type(s) of income is limited/restricted.
I used them in my 30’s/40’s & income in low 6 figures, mainly as a way to have an educated second set of eyes review my work & efile file for free.
I do see now that you copied the text directly from the IRS website. Yet, I also see that the text you cite (which falls at the top of the webpage) directly contradicts information provided further down on the same webpage. That’s pretty troubling…I wonder if the IRS forgot to update the text for 2017 returns.
Either way, I am positive that the states you/the IRS have listed are not the only states that offer free state tax returns through IRS Free File (not in the least because my state is not among the listed, and I’ve verified that I can file my state return for free via a handful of the IRS Free File software programs). I can understand if you want to leave the text in your post as-is, but it may be a bit misleading, especially for those who don’t read through the comments section.
Fidelity Investments offers FREE Turbotax Premier to selected clients (YMMV) I found the offer at the bottom right of the welcome screen. It includes federal and free state.
Do you have a link to check? Do you mean the welcome screen for Fidelity or Turbotax?
I bought TurboTax Premier. Should I plug my numbers into Credit Karma and freetaxusa as well to check if turbotax is calculating everything correctly?
Also, I used stockpile.com last year (sold some stocks; less than $100) and I don’t yet see a 1099-B available. Makes me anxious.
In my experience TurboTax gets you where you should be on your tax returns. When you really think about it, no matter who you use you should end up with exactly the same tax liability/return numbers. Just some companies/programs push the envelope of what you can deduct (making it illegal really, but that’s a whole other discussion).
Thanks! I am not itemizing deductions so should be safe then.
CreditKarma gave me biggest return. They gave me $125 more on Fed and $25 more on state than TurboTax (2nd place). Exact same info entered on all of the above platforms. It was all free FYI.
No reason to pay for this service unless you make >$750k a year
Credit Karma gave me a bigger return last year too. That is until I got audited and had to pay the difference anyway, plus interest. Do you sell a favor and use one of the more known companies.
What did CK screw up on your return?
Counter DP: CK was the worst for me last year. Noone but TurboTax calculated my excess Medicare and Social Security withholding, giving me a few hundred extra dollars. Also, CK could not handle HSAs for California taxes properly.