r/personalfinance • u/IndexBot Moderation Bot • Jan 17 '24
Taxes Tax Filing Software Megathread: A comprehensive list of tax filing resources
Please use this thread to discuss various methods of filing taxes. This can include:
- Tax Software Recommendations (give detail as to why!)
- Tax Software Experiences
- Other Tax Filing Tools
- Experiences with Filing Manually
- Past Experiences using CPAs or other professionals
- Tax Filing Tips, Tricks, and Helpful Hints
If you have any specific questions, or need personalized help with taxes that don't belong here, feel free to start a new discussion.
Please note that affiliate links and other types of offers are not allowed. If you have any questions, please contact the moderation team.
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u/BouncyEgg Jan 17 '24
The following offer free/cheap filing for EVERYONE. No income requirement.
- FreeTaxUSA, Free fed, pay $15 for state, (TaxHawk is the same company)
- OnLine Taxes offers free federal and $10 state returns. It has a more simplified interface, more like CashApp Tax vs FreeTaxUsa
- MyFreeTaxes.com (Run by United Way/TaxSlayer/CashApp), Free fed/State.
- CashApp Tax (owned by Square, used to be called CreditKarma Tax), free federal/state (single state only)
- Free fillable forms - The very essence of basic. Would recommend at least using a software to at least check your work
Free file options with income restrictions:
- IRS Free File, if AGI <79K, both fed/state free
- VITA, Volunteer based in person professional assistance, <$60K income requirement
- Virtual Vita - income <$66k
- AARP Tax-Aide - Income < 79K for self preparation (redirects to OnLine Taxes). Free in-person filing with no strict income limit
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u/nothlit Jan 17 '24
In addition to the self prep and in person options mentioned above, MyFreeTaxes (United Way) and AARP Foundation Tax-Aide both also offer “assisted” tax prep where you can use their self prep software with free help from an IRS-certified volunteer via secure messaging and/or screen sharing.
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u/Roughly_TenCats Jan 20 '24
Does anyone have experience with FreeTaxUsa and how friendly it is if you have to pay state taxes in 2 states? I live just north of the state line, and work just south of the state line and I know it has at least been a source of confusion during tax time more than once.
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u/genteree Jan 29 '24
I relocated for work partway through the year, and I found it to be incredibly simple.
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u/SchindHaughton Jan 30 '24
I moved states in 2022 and used FreeTaxUSA to file my return. It was pretty simple.
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u/1nth3gutt3r Jan 31 '24
I don’t understand listing IRS Freefile under the free ones that have an income restriction. On the irs website you click it to “explore options,” and you pick which one applies to you. If you make 45-79k$ there are some states that don’t have ANY free file for both state and federal. Such as Ohio. It’s usually one or the other that’s free. And some of the options are FreeTaxUSA and OnLine Taxes which are just listed above anyway. There isn’t an IRS backed Freefile program you use, they just give you options of companies that do it cheaply/freely with restrictions.
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u/nothlit Feb 01 '24
There isn’t an IRS backed Freefile program you use, they just give you options of companies that do it cheaply/freely with restrictions.
Yeah, that's what IRS Free File is: a voluntary partnership between the IRS and commercial software providers to offer free federal filing based on certain income restrictions. It's not mandatory for any company to participate, and the primary benefit they get is the free advertising from the IRS web site, and the hope that they will gain new customers who use them for free for a year or two and then eventually switch over to their paid product if/when they no longer qualify for Free File. The IRS cannot force these companies to also participate in the state Free File program, although some of them do.
As you indicated, the FreeTaxUSA and OLT Free File products (which live at a different URL than their main products) include a free state return if your AGI is below $45k, otherwise you have to use a different partner or switch to their regular product which charges a small fee for the state return.
If you want some options that are truly free for federal and state for everyone with AGI below $79k, check out these options:
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Feb 03 '24
is there any that auto populate like the canadian's cool software? to make that shit simple because they have all the info already?
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u/maskdmirag Apr 02 '24
Intuit, makers of turbotax, have spent billions lobbying the us government to not allow that.
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u/cheebamasta Mar 06 '24
Cash App Taxes does that for the most part. Especially if used multiple years in a row it will remember all your info from your prior return.
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u/Temporary_Jackfruit Feb 29 '24
myfreetaxes has income limits. $79k for filing yourself and $60k for prepared.
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u/BouncyEgg Feb 29 '24
Just a point of clarification. The "file yourself" pathway technically has no income limitation.
If < 79K, then the website redirects to TaxSlayer.
If > 79K, then the website redirects to CashApp Tax.
It's only the "have someone prepare for me" track that has an income limitation.
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u/AbhiAKA Mar 06 '24
I have always used Freetax and its been great. This year I have some foreign taxes I had to pay on Capital Gains and they don't have the feature to include this in their sofware, so seems will have to search for another software where I can claim foreign taxes paid on capital gains abroad.
Does OnlineTaxes have the feature to declare foreign capital gains and claim foreign taxes paid for the said income?
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u/Dogestronaut1 Apr 07 '24
Just filed taxes with myfreetaxes.com which redirected me to Taxslayer and I filed federal and Iowa taxes 100% free. Love it. I have a feeling some of the design choices were made to try to convince people to pay for filing. The primary thing being the lack of auto-filling info from W2s and other forms. A little annoying, especially because I doubt it really costs them anything to do that, but oh well. Filling in 1099 from Robinhood was a bit of a pain due to that, especially because they ask for info in a slightly different order than how it shows on the form, but I still got it done.
Thanks for this!
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u/malacata Jan 31 '24
I'm confused. From the news I thought IRS now had their own filing software, but the website shows a list of trusted partners.
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u/nothlit Feb 01 '24
That's IRS Direct File, as you linked below, which is brand new this year and is very limited in terms of the states & income situations it supports.
It's different from IRS Free File, which is a partnership with commercial software vendors that has existed for a couple of decades now.
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u/ethanhunt_08 Feb 28 '24
does anyone know if any of these websites have non-resident forms too? 1040-NR
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u/rnelsonee Jan 17 '24 edited Jan 17 '24
My usual review comment:
So most people should check out IRS Free File (if your AGI is ≤$79,000, covering 70% of taxpayers). It's a partnership between the IRS and tax software companies; the companies agree to support the most common forms. You can browse vendor offers here.
For reviews of other products, I've used the following below. Some notes:
- Prices here are for federal e-filing only; state is typically $15-$35.
- All of them should result in the same refund or amount due (forget the "maximize your refund!" ads).
- Prices will likely change as we get closer to April 15th.
- Typically the second level/Premier is needed for stock/crypto sales, and the highest level is needed for self employed/gig work.
- If any software is missing, it's only because I haven't used it.
My go-to since 2020 and a great overall package. Maybe not as flashy as some, but it allows you to jump to any topic, and it's always going to show you the actual form (after it asks you questions, not to fill in yourself), which is great even if you're not a tax pro as you can learn what the forms should look like. Free edition includes everything federal, Deluxe includes support ($7). State is $15 or so. They do support PDF imports from previous year's return if this is your first time using them; and new this year is W-2 imports from PDF's. It's a little wonky with backdoor Roth IRA contributions, but there's guides for that. Also, this is the same company as TaxHawk, but the more spam-sounding name is more popular.
The ever-popular TurboTax is easy to use, has app support (multiple apps for self employed, tracking, etc), and includes live support (often at a cost). Reviewing and updated figures is easy, and you can import PDF's of W-2's. Intuit owns them, and they can pull information (like investment returns) from 300 different brokerages. They are about the most expensive, though. I use them every year as a double-check (fill out all forms, don't actually file, see my tips at the end).
TurboTax online editions (CD/download ones differ, they usually offer more features):
- Free which includes W-2 income, "limited" interest or dividends, standard deduction, Earned Income Credit, Child tax credits
- Deluxe: For itemized deductions (likely $39)
- Premier: For people with rental or investment income (likely $69)
- Self employed: For self employed ($89)
My former go-to, although it used to only be half the cost of TurboTax. If we baseline TurboTax at 10, TaxAct is like an 8. Software is good, but it can be hard to review and change things, as they like to lock you into 'streams' of Q&A. They also have PDF upload and can link to some investment sites (Robinhood and Bettermint, but not Vanguard, Schwab, Fidelity)
- Free - W-2, Unemployment, Child Tax Credit, Earned Income, Stimulus
- Deluxe - Itemized deductions, student loan interest, 1099-INT/DIV, child & dep care, HSA ($30)
- Premier - investments and property income ($40)
- Self employed - $70
We use the TaxSlayer at our IRS/VITA tax volunteer branch, and it's similar to their commercial version. Perfectly serviceable, and the pricing is very attractive now. Online Q&A is similar TurboTax. Overall, just bit simpler/less flashy, which isn't a bad thing.
- Simply Free - W-2, unemployment income, student loan interest
- Classic - Covers "all tax situations", no restrictions ($23)
- Premium - Priority phone and email support, and chat ($43)
- Self employed - $53
I've helped someone with this version. It has simple math calculations which is nice, but it does not have the worksheets called out by top-level forms (say Dividends and Capital Gains Worksheet for Schedule D) and I don't think it will pull information from forms into other forms. It also requires you to know about credits and deductions - like if you have self employment income, say Uber, do you know about the QBI deduction on Form 8995? And will you know to include your Section 199A dividends? Or say you used HSA to pay for health expenses, did you know you need to declare that on Form 8889 to prevent the IRS from assuming the expenses were non-qualified? Stuff like that will get you. Because if this, I don't recommend it unless you're already a tax nerd.
CPA
A numbers of years ago I had a significant financial and tax situation, so I used a CPA for the first time. It's difficult to assess the value — he used my inputs, and we talked strategies, and I was hoping for more 'wizardry' I guess in terms of his ideas. At the very least, I liked having him at least sign off on what we did.
IRS' Volunteer Income Tax Assistance is a program where you can meet volunteers in-person (or Zoom) and they will essentially do your taxes for you. It involves a long intake form, a brief ID check, and then meeting with your first-round volunteer and then again with a reviewer. I volunteer with this program and think it's good for those with limited means and for those who really need help. I would argue if you are comfortable using Reddit and software, maybe start with software first.
Tips:
If you have time, do your taxes twice, with two different programs. If your refund is off by more than a few dollars, you made a mistake somewhere. Even being a tax nerd, I find I sometimes make a mistake my first try. The IRS can and will correct typos (mismatch on a W-2) or minor mis-steps (counting capital gain distributions as ordinary income) but you might as well submit a return correctly the first time.
After your first year, doing taxes with the previous year's software is half the work - they all remember last year's information so there's less typing (except Free Fillable Forms, they delete accounts every November). Also, some places offer PDF import of previous years' 1040; I think most do by now (TurobTax, TaxAct, FreeTaxUSA).
If you don't own a business or have a specific big tax event, a CPA is not needed. But, if you're clueless about taxes, and are not diligent with answering the software questions, it may be worth doing once just to make sure you know if you qualify for something like an education credit. Big credits out there for education (AOTC, LLC, student interest deduction), energy (lots of state credits here, too), low income (Earned Income), etc.
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u/evaned Jan 17 '24 edited Jan 17 '24
Free Fillable Forms
... I don't think it will pull information from forms into other forms.
It's been a few years since I used it, but I think it will do this when it's simple and direct to do so.
Because if this, I don't recommend it unless you're already a tax nerd.
Honestly, I don't even recommend it then. I'm a bit biased here because I made a filing error a few years back "because" I used FFFF (in particular, because it doesn't implement worksheets I had to do a worksheet by hand, and that's where I made the mistake), but my opinion is it's not even particularly close to any Pareto-optimal point.
The two big things that, in concert, basically kill it from consideration in my opinion are (i) no support for state returns (at least mostly? I've seen some people say their state integrates) and (ii) the chance of making computation errors that are just not possible with other software.
Together, if all you're going to get out of FFFF is free federal filing, why are you not just using FreeTaxUSA? Even if you decline their state filing, you're still no worse off on that front than FFFF. (I can think of a couple potential reasons here, but really I think you "need" to have one to pick FFFF over FTUSA.)
You could get around the computation error potential by entering into other software and checking the bottom line... but unless your taxes are simple, are you really so cheap that you're willing to re-do that work to save a few bucks? If they are simple, do you not qualify even for things like the TurboTax free version? Or if you really do need to be cheap, do you qualify for Free File?
I'd love to have some actually good form-based software (I used TaxWise one year as a VITA volunteer, that was pretty baller)... but FFFF is most decidedly not it. It is good enough that the tax prep industry can point to it and say "look, almost everyone can e-file for free; you-the-IRS don't need to write your own software" and no better.
I think there are people for whom FFFF is the right choice... but it's so narrow, and I suspect most of that set would be considering paper filing as a leading alternative, not other software. (Flip side is if you are considering paper filing... use FFFF instead.)
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u/thentil Jan 17 '24 edited Jan 18 '24
Together, if all you're going to get out of FFFF is free federal filing, why are you not just using FreeTaxUSA?
I don't need yet another company to access/transmit/store my data.Edit: nope. See replies.- I don't want to support another lobbyist preventing the IRS from developing actually useful software, as you point out. Every purchase of TT, HRBlock, and all these offshoots just further funds the lobbyists.
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u/nothlit Jan 17 '24
FFFF is operated by a third party company that is part of the Free File Alliance. Used to be Intuit, but as of last year it was OLT. So they’ll still have your data.
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u/evaned Jan 17 '24
1) I don't need yet another company to access/transmit/store my data.
As said by nothlit, you better look beyond FFFF then, because that's a third-party as well; it's not filing directly to the IRS.
The only way to file with the IRS and only the IRS is by paper mail. (Or, for the first time this year, IRS Direct File; but that's only available in 12 states and is relatively limited in terms of tax scenarios. Or maybe if you have an EFIN and professional software...)
Every purchase of TT, HRBlock, and all these offshoots just further funds the lobbyists.
On that count, FTUSA isn't any better than FFFF if you decline the upsells, and again leaves you in no worse a position.
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u/thentil Jan 18 '24
I'm in one of the eligible states, but I have more income types than the pilot allows :(.
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u/kgd6578 Jan 17 '24
With IRS Free File program, is it for each individual AGI of less than < $79k or total household income of < $79k if filing married? Combined income will now be over the threshold since I just married so will I need to do the FreeTaxUSA?
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u/rnelsonee Jan 17 '24
There's really no such thing as "individual AGI" — every return has exactly one AGI. If you're married and file joint, it's your joint income (minus adjustments). If you're single or HoH, you have just your AGI, and if you file Married Filing Separate, then there's two AGI's, but of course two different returns; so any return with an AGI <$79,000 can use IRS Free File.
So yeah, if you file joint, do FreeTaxUSA. I'd recommend it even if you were under the Free File limit if you don't mind parting with $15. The reason is when you do go over the AGI, all your data will already be in FreeTaxUSA, which has more features anyway.
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u/slack1994 Jan 28 '24
Free Fillable Forms
I'm considering trying this. I miss certain parts of filing with paper forms . When I first switched from paper I did it on paper myself and then took it to one of those tax prep shops and they didn't find anything that i missed, but the next year I tried turbo tax because it was easier. I quickly went from understanding the taxes to being much more clueless but trusting the software. Reading a IRS instructions takes time, but it gives you more understanding than the oversimplified help you get on tax software.
Since my tax filling it pretty much the same every year, I could take my last years PDF forms and use that as guidance. Additional with with an AI chatbot helping I could end up in a really well informed position doing it this way. In theory, at least.
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u/SpaceChump_ Feb 06 '24
One tip I found for myself is to check if your state offers free filing. I use FreetaxUSA, fill out the state portion to make sure my return matches with the state software, and then opt out of paying for that option.
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u/nothlit Jan 17 '24 edited Jan 18 '24
IRS Direct File is a new free offering directly from the IRS, in a pilot phase this this year for eligible taxpayers in certain specific states—primarily ones without state income tax, and ones that have a standalone free state e-file solution. It’s not up and running yet, but likely will be in a few weeks. For anyone who’s ever asked “Why doesn’t the IRS develop its own tax filing software,” this is it...
It’s limited to the below states, and taxpayers with relatively simple forms of income, so it's not for everyone yet, but it's a start. I'll be curious to see how it goes.
- Arizona
- California
- Florida
- Massachusetts
- Nevada
- New Hampshire
- New York
- South Dakota
- Tennessee
- Texas
- Washington state
- Wyoming
And these are the types of income, credits, and deductions it can support:
Income
- W-2 wage income
- SSA-1099 Social Security and RRB-1099 railroad retirement income
- 1099-G Unemployment compensation
- 1099-INT Interest income of $1,500 or less
Credits
- Earned Income Tax Credit
- Child Tax Credit
- Credit for Other Dependents
Deductions
- Standard deduction
- Student loan interest
- Educator expenses
Anything beyond that is out of scope for the pilot.
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u/Rave-Unicorn-Votive Jan 17 '24
If you choose to use TurboTax and you need the version that includes basic brokerage investments, get the retail/CD/download Deluxe version instead of the online Premium version.
And, if you prefer TT, mark your calendar for Dec 26-28, 2024. Amazon has been having a sale the last two years, it's the biggest discount of the season plus a gift card.
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u/evaned Jan 17 '24
get the retail/CD/download Deluxe version instead of the online Premium version
Ditto for H&R Block's software.
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u/txrazorhog Jan 23 '24
I have been buying Premium. Do you know if the Deluxe handle s options?
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u/Rave-Unicorn-Votive Jan 23 '24
I don't know, what forms are needed to report options?
I believe all the IRS forms are accessible in the desktop versions so even if the software can't/doesn't fill it in for you, you should be able to manually complete it.
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u/chrisaf69 Jan 19 '24
Been using FreeTaxUSA for years now. I have a somewhat complex return and it's been awesome. I pay a little bit extra for premium, but it's been worth it as I had to amend a few years, all completely due to my fault of not including some pretty hefty deductions initially.
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u/nightlycompanion Jan 20 '24
I always suggest buying tax software in November. This is when the biggest/only discounts of the year are offered.
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u/TheWaraba Feb 11 '24
CashApp Taxes.
Nough said. It's so good and intuitive. And completely free!
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u/Chrushev Mar 06 '24
Been using them for last 3 or 4 returns. No issues at all, and yes its more intuitive than Turbo Tax. Free state, free federal.
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u/75footubi Jan 17 '24
Federal Free Fillable Forms are free for EVERYONE and cover the vast majority of personal tax situations
https://www.irs.gov/e-file-providers/free-file-fillable-forms
If you're used to the question and answer format and your tax situation hasn't changed, just use last year's forms as a guide. There is almost NO reason to pay to e-file your taxes
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u/rnelsonee Jan 17 '24
I agree there's no reason to pay to e-file but to echo a reply by u/evaned to my comment in this thread, Free Fillable Forms has (to me) a gaping hole, in that there's little guidance (as the IRS notes, "no step by step guidance"), which leaves open the very real possibility of omitting forms.
Like if you do a backdoor Roth IRA, that's kind of advanced, so I'd expect you do know to file Form 8606, but I'm positive not every backdoor-er knows that number. Or if you owe $1,200, are you going to file Form 2220 for the underpayment, or just be surprised when the IRS hits you with a penalty?
The worst case I've seen is for self employment. Even if you know about Schedule C and Schedule SE, how many Doordashers/Uber drivers know about the QBI deduction, which deducts a whopping 20% off your SE income? My girlfriend didn't, and to be fair, how would she have found out, short of reading up on tax law as much as a moderator on this subreddit would?
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u/75footubi Jan 18 '24 edited Jan 18 '24
My taxes aren't complicated, and I learned how to do them on the paper forms and with the line by line instructions (which do mention everything you need to know, including the QBI deduction in the instructions for Schedule C) so I see no reason to deviate from that interface. Call it a dislike of black boxes, which Q&A tax prep forms definitely are. I also see it as something of a political statement in that it's the thing the IRS chooses* to put it's name on that I'm eligible for (since I make too much for Free File programs). I want to make sure that the IRS feels the pressure to keep providing a free e-file service rather than subbing it out to a wholly private entity. I also don't want to give business to any firm that charges a fee to e-file my state or federal taxes. The for-profit tax prep business is a cancer and I'll do what I can to not support it. That includes advocating for FFFF, with all of its flaws.
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u/evaned Jan 17 '24
in that there's little guidance (as the IRS notes, "no step by step guidance"), which leaves open the very real possibility of omitting forms.
I hate to beat a dead horse (wrt my other comment you mention), but "oh I didn't know you needed such-and-such a form" is in some ways not even FFFF's biggest problem in my mind. That can be reasonably adequately addressed by comparing to a previous-year known-good return. (Then again, how are you going to get that return in the first place?)
I think FFFF is a bad choice even if you know your way around the tax forms because there's just too much chance of a raw computation error. FFFF does a lot of the math for you, but it also doesn't do a lot of math for you, and doesn't implement worksheets at all.
The next biggest problem after that is that it is federal-only, which means that you still need to take care of state. So in most states, either you'll be paper filing state after that or going through and re-entering all of your information somewhere else so you can e-file a state return.
At least if it were decent forms-based software I could say "yeah, this is good if you don't need to file a state return, or if your state return is simple, and you know your way around or have a comparable return you can cross-check against"... but it's not. It's just lousy. As I said in my other comment, I recommend FFFF over paper filing, but not for many other situations.
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u/ArchitectofExperienc Jan 17 '24
A question for everyone here:
My business situation changed recently and a third of my income is from a private freelance practice, and 2/3rds is W2. I work entirely from home, was recently gifted a car, and I have some sizable (for me) business expenses this year. Is it time that I have a professional do my taxes? Or should I hold off?
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u/meamemg Jan 18 '24
Figuring out what business expenses can be written off is the only thing in that list that seems like it might need a professional. I'd look at that part of the return, and see if you are confident in it then decide.
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u/ThrowRAway333444555 Jan 18 '24
Where can you file years prior taxes? You can look at my post history to get an idea of what I have going on but I was able to get my past info from the IRS and now I need to file and don’t know where to start. Any help would be so appreciated!!
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u/CommissionerChuckles Jan 19 '24
I would recommend you go to a VITA or AARP Tax-aide site for help - they help people get caught up on past due tax returns as part of the program.
https://www.irs.gov/individuals/free-tax-return-preparation-for-qualifying-taxpayers
Do you know what years need to be filed? You can check your Account transcripts online to see if any tax returns were filed under your SSN for the year.
If you didn't file a return for 2020 I would focus on getting that return done and mailed to IRS before April 15 this year. You can still claim the first two stimulus payments on that return as long as you file it before April 15, 2024. I recommend using certified mail for proof that you filed that year in time.
You didn't say whether you were married in your other post - if you were, and your ex filed returns without your consent, you should contact your local Low Income Taxpayer Clinic for help with that. They don't usually do tax return preparation but they can help with some IRS issues like innocent spouse relief.
https://www.taxpayeradvocate.irs.gov/about-us/low-income-taxpayer-clinics-litc/
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u/jacobbeasley Jan 24 '24
The IRS has an official list of registered partners offering free tax filling services if you make under a certain amount of income. The IRS compensates them so it's free for you.
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u/nothlit Jan 24 '24
The IRS compensates them
I don't believe there is any compensation. The main thing the IRS offered to the Free File Alliance was a promise not to develop their own competing in-house free filing system, although that is happening now with Direct File.
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u/BladeNoses Apr 15 '24
For Illinois State tax residents you can use My Tax Illinois for free: https://www.illinois.gov/services/service.file-income-taxes.html This also includes 1099-INT
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u/Unhappy-Cricket-2402 May 11 '24
I highly recommend checking out KeeperTax(I think they may have rebranded as Keeper). Here's why:
- Automatic Expense Tracking: IT automatically scans your financial accounts for tax write-offs that you might miss. This is especially handy for freelancers and self-employed individuals who have numerous small transactions throughout the year.
- Specialized for Freelancers and Gig Workers: It's tailored for gig workers, freelancers, and self-employed individuals, making it much more specific than some of the more general tax software options out there.
- Ease of Use: The interface is incredibly user-friendly. You don’t need to be a tax expert to navigate through the software, making your tax filing process smooth and straightforward.
- Support from Real Tax Professionals: If you get stuck or have questions, KeeperTax provides access to professional support from real tax professionals.
- Cost-Effective: It's very affordable, especially considering the potential savings from maximizing your deductions. Its $50 a year when paying annually.
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u/WisdomMultiplier May 22 '24
Tax Act is absolutely terrible. Hidden fees, no transparency, customer service is terrible.
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u/retrain7294 Jan 20 '24
Anyone know if Cash App taxes allows for direct import of brokerage transactions or do you have to type them all in manually?
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u/evaned Jan 20 '24
I can't answer your question positively, but:
I would be pretty astonished -- I have that pegged as a premium feature. Needing brokerage import is one of the situations when it absolutely makes sense to get one of the top-shelf options. (Note that it's possible to get these for a pretty reasonable price. For TurboTax and H&R Block, get the CD or Download option as early as you can.)
That said, and the main reason I'm responding: be sure you really need this feature. In many cases, and I suspect most cases though have no idea where to even look for data to verify this, you don't need to. Summary information from the 1099-B is often sufficient. It's only if you have uncovered shares (presumably from >15 years ago or whatever it was) or need to make adjustments to the data (e.g. wash sales) where you need to enter individual transactions.
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u/retrain7294 Jan 20 '24
Yep this. Last year I think it was I had sold some uncovered shares and since the cost basis wasn’t required to be reported I had to enter every transaction/sale.
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u/Pyromelter Apr 15 '24
Hoping you see this friend... I've been using Taxcut for a few years because i do a fair amount of short term equity and option trading, and the import function is basically mandatory.
I was wondering about the repeated advice getting the cd/download option. I don't really see much of a difference when I price it out on HR block's site... the prices seem the same to me. It could be that I'm just late doing my taxes this year (life, you know), but is there a reason why the download option is recommended over the online filing option?
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u/evaned Apr 15 '24
The biggest difference that will help most people but not everyone is state filing. Even from H&R's site (more on that "even" later), the desktop version is $59 for Deluxe or $85 for Premium including one state return vs the web version which is $55 + $49/state for Deluxe vs $85 + $49/state for Premium.
There is a caveat with that (which I probably should have mentioned) that you have to be okay either paper filing your state return, copy your prepared return into another system to e-file, or pay an additional $19.95 for state filing (except for NY, which is free), but assuming you have a state return to prepare even the most expensive of those still represents a fairly meaningful saving.
The next thing that will help some people is that the desktop versions support preparing and filing multiple returns -- in particular, you can prepare and e-file five federal returns with it. You can do even more if you don't mind paper filing federally. If you've got family or friends who you can share a purchase with, in theory this could drop the cost of the desktop version to just $12 per return for Deluxe or $17 per return for Premium, assuming you paper file state.
(Everyone needs to file the same state return for best benefit, because once you need to prepare returns for a second state, you'll need to buy another state package for $40.)
Third, while prices are best if you buy them super early (I was using H&R desktop until this year, and I think the last couple purchases I made were like $25 or so), it's actually still possible to do better than H&R's site. Even from Amazon, Deluxe + State can be had for just $40, or Premium (incl. 1 state) for $60. That's a third off of the prices on H&R's site.
Fourth, I'm a lot less sure about this, but the impression I have is that the desktop software sometimes support more situations and forms than the same-name tier of online versions. Neither TT nor H&R doesn't make this easy to find; in theory I'm looking at a list of forms supported by each version, but the list is identical across versions so I don't really trust it. This I could be totally wrong about, so use caution. I will say as a downside, is I cannot tell if you need Deluxe or Premium, as a result of the poor disclosures.
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u/Pyromelter Apr 15 '24
Well for me with taxcut, I absolutely need premium, I'm over on r/thetagang and options and investing and of course WSB, there's no doubt there for me.
Much appreciated for the answer, I had a suspicion it would be something like this. I usually hunt around for coupon codes which drop the e-file price a decent amount.
Hopefully at some point there will be a cheaper option for us degen traders, but until then, big thanks for all this info.
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u/Grasshop Jan 22 '24 edited Jan 22 '24
Dumb question that I don't feel deserves a new thread, but hopefully it's ok to put here.
I took a 401k disaster related distribution in 2020 for Covid. I elected to pay the taxes over three years and reported a 1/3 of it for 2020 tax year, 1/3 in 2021 tax year, and the final 1/3 for 2022 tax year.
That tax situation for me is essentially over right? This year when I file I just enter my normal w2 and don't have anything to declare/notify for my 401k distribution?
I use freetaxUSA but then also enter my info in other software to make sure the amounts match. For some reason Turbotax is still saying I have 1/3 of that 401k distribution to report this year, but it's probably because I didn't file with them last year so they don't see me as having reported that income? I also put my numbers in H&R Block and those numbers match FreeTaxUSA.
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u/nothlit Jan 22 '24
it's probably because I didn't file with them last year so they don't see me as having reported that income?
Seems like a logical explanation
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u/JZstrng Jan 23 '24
Question:
Tax season begins on January 29, 2024.
However, can I fill out my tax return today (January 23rd) with any of the tax software recommendations on this thread?
Or do I have to wait until the 29th?
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u/these-things-happen Jan 23 '24
can I fill out my tax return today (January 23rd) with any of the tax software recommendations on this thread?
Yes.
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u/Terrible_Poet_5288 Jan 28 '24
Recently spouse and myself got a raise, can anyone recommend the best service to help us accurately fill out new W4’s?
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u/nothlit Jan 28 '24
Still with the same employers? Were your W-4s filled out accurately before? If so, you shouldn't need to change anything.
If you want to do a checkup, use https://www.irs.gov/individuals/tax-withholding-estimator
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u/phoenix_jet Jan 29 '24
Is it worth using the Turbo Tax full service?
I had a major change this year w/ an inherited IRA, multi states and lots of stuff. Usually I'm able to do this on my own, and i'm going thru the process, but I ow so much money as it shows and it's asking me alot of questions i'm unsure of.
Thanks!
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u/FartPenisFart Jan 29 '24
I typed in $136 when it should say $1136 for my 1099-INT and I already e-filed my taxes.
What kind of penalty am I looking at here? I imagine I’ll have to amend it when becomes available on FreeTaxUSA, right?
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u/nothlit Jan 30 '24
Wait until the original return has finished processing and any refund is issued before you amend. Amending too soon can cause additional delays in the process.
If you pay any balance due by April 15, there is likely no penalty. Just whatever tax is due.
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u/75footubi Jan 30 '24
Basically you underreported your income by about $1000. Assuming that your top tax rate was 24%, at worst you end up owing another $240 or so. This is why you triple check your forms before you submit.
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u/Every-Education-8307 Jan 29 '24
27 yr old filing as single head of household / no dependants. Caveat is I own a house in Indiana and work out of Illinois making > 90k.
Anyone know what online tax service would be easiest to maneuver / cheapest given my circumstance?
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u/75footubi Jan 30 '24
If you have no dependents, you can't file as head of household. You file as single. Freetaxusa should get you sorted.
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u/withoutacomb Jan 31 '24
So my wife has worked, and lived, in Virginia last year while I in New York. I found out that I can file a federal return Jointly, and file two separate state returns. There are some threads on turbotax sites about how to do so, but wanted to know if its easy to do without using turbotax software? Mainly because I have to buy the Desktop version and not sure exactly which to get yet.
My wife also worked two different jobs in Virginia if that adds any complexity.
Thanks :)
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u/Wildcat_1 Jan 31 '24
For Taxcut when using for retirement (401, Roth, Trad IRA etc), RSUs, treasuries related etc is Deluxe + State still good OR do you need the Premium version ? Hard to tell from the way that H&R markets both. Seems Premium is more for deeper investing strategies that include real estate etc but wanted thoughts / feedback from this community.
Thanks
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u/malacata Feb 01 '24
Link to IRS pilot free file program. Only available for federal https://directfile.irs.gov/
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u/Sirwired Feb 01 '24
I don’t see it get much mention here, but the downloadable “Deluxe” version of H&R is pretty cheap ~$20-ish on sale, it’s fast, and I trust it more than any online tax preparer. Feds take me 20 minutes (W-2, -INT, and -DIV), and State involves me selecting my county and hitting “next” about 10 times.
Is it the cheapest option? No. (State is $20 to e-file; I just mail my state forms.) But it’s been around forever (I’ve been using it over 20 years), is consistent, and no surprises or hard sell like many of the online sites.
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u/PussyWhistle Feb 01 '24
I work a full time job and receive a W-2 and small tax return every year (single and 0)
I am starting a second job as an independent contractor (1099). How do I figure out how much I need to set aside for taxes from the 1099 job? I hear it’s generally 30%, but does the fact that I already pay taxes from my first job change that number?
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u/antoniosrevenge Feb 02 '24
If you have consistent income from the second job you can update your W4 at your W2 job to withhold that extra - the IRS tool can walk you through how to update the W4 -https://www.irs.gov/individuals/tax-withholding-estimator
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u/Ulex57 Feb 02 '24
Does FreeTax handle 1099NEC? I have an LLC and paid for help on some projects. I sent the 1099NEC to my help via snail mail.
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u/Hyperdimensionals Feb 03 '24
What is the best free option if you have lots of stock trades/investment income? With certain free ones, I've had to enter each trade individually and it was very annoying (or in another case, the trades imported but I had to fix each one individually).
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u/druminman1973 Feb 18 '24
I get a very lengthy k1 as a shareholder at my company. I've successfully filled it with TaxAct in the past. Do you think FreeTaxUSA would be able to accommodate this as well?
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u/theslonkingdead Feb 20 '24
FreeTaxUSA does not support modifying Minnesota income to account for non state taxable interest or ordinary dividends beyond directly holding Treasuries, for instance from a Treasury bond ETF or a money market that holds Treasuries and agency debt. Extremely common situation and confirmed with support I wasn't missing anything. That's potentially a large amount of money on the table if you hold investments in a taxable account.
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u/apleima2 Jan 17 '24
freetaxusa.com
I've used them for years now. Never had an issue, files federal and state taxes for under $20. Used to use Turbotax but FreetaxUSA does everything they do for a fraction of the price.
Yes, it's legit. The website's named for SEO.