IRS Free File is a great way to prepare and file your federal income tax online for free. It is safe, easy and cost-effective, but it may not be the best option for everyone. FreeTaxUSA is another free online tax service that offers quality software at a low cost. It is reliable and secure, but it lacks some features that other tax preparation sites offer.
In this article, we will discuss the pros and cons of using FreeTaxUSA, how it works, and who it is best for. FreeTaxUSA is a great option for those who value low prices over a comfortable experience and don't need the individual help of a tax expert. It was founded 20 years ago by a CPA and is a member of the IRS Free File Alliance. The website only shows that you will continue to file your federal returns for free, regardless of your tax situation.
The interface is not as advanced as that of the high-end competition, but it is satisfying both for first-time entry and experienced users. It provides quality software, especially considering cost, although the user interface is not as advanced as TurboTax or H&R Block. You can access the basics with FreeTaxUSA, such as filing an online return with no cost if you deduct interest paid on student loans or have rental property. FreeTaxUSA keeps your information safe with data encryption and requires multi-factor authentication every time you log in to verify your identity.
When it comes to calculating taxes due or expected refund, FreeTaxUSA is reliable. However, it does not support certain situations such as income earned abroad or returns from non-resident aliens. One of the biggest disadvantages of FreeTaxUSA is the inability to upload tax forms such as a W-2 or 1099 from your computer or bank. Automatic data entry can save significant time if you have multiple revenue streams or investment sales. TurboTax, H&R Block and TaxSlayer offer free plans with free federal and state returns in some cases, so if you qualify for free filing, there is no need to spend money with FreeTaxUSA. The short answer is yes, electronic filing is very safe for filing your tax returns.
The odds of having your income tax data stolen are extremely remote while you file electronically. This option could be a good middle ground if you want a tax professional to handle your return and you also want to save money, but it's really ideal only if you're familiar with all the tax credits and deductions you're entitled to, including complicated things like what you can spend on commercial deductions. Encryption prevents access to data as it moves between your tax software and the IRS or state tax agency. Both TurboTax and H&R Block offer a service where you can start your return online and then ask a tax professional to review your information and file it for you. For those with higher incomes, these companies offer paid versions that are top-notch options for tax filers with simple and complex tax situations. If you're not comfortable using tax software or just want live assistance, free in-person or virtual tax preparation is your best bet. In conclusion, filing taxes electronically is more secure than sending a tax return by mail because the details of an electronically filed tax return are specially encrypted for added security.
Free online tax preparation offers a convenient and reliable way to file your taxes at no cost if you know where to look. IRS Free File program is a great option for many people but there are other ways to get free tax returns such as TurboTax's free service.
