I always pay a accountant to do my own taxes. But I always do the taxes for my Daughter. Just curious what free online site anyone here has used. I think I used Turbo Tax in the past but just checking to see if something else may be better.
Are any of them actually free anymore? I do my kids taxes with H&R Block because its free for the middle one, but my oldest it costs like $35. I use TurboTax for ours, but once you itemize, etc its spendy. Like $100 I think for both Federal and State. Last year there was some calculation issue in the software and I got hosed! The last several years we have had to pay in to the tune of several thousand dollars each year. Last year we got a refund of like $500 from Federal. Then June rolls around and the last thing you want to see a letter from the IRS. Yep, whacked for $5000 underpayment! If I had purchased their top of the line service I am sure I would have been covered and TurboTax would have had to eat it because its guaranteed or whatever, but I was NOT happy.
You can do more than one return on a TurboTax account. I am 10 years with them now and my returns have become pretty complex.
If it is a simple return I believe TurboTax can be free. A way for them to build a future base of users.
Simple returns are free on turbo tax. “Simple” would include W2 income, standard deduction, earned income tax credits, and child tax credits.
Since tax reform a few years ago, its much more rare for someone to need to itemize versus taking the standard deduction.
Not sure how old your daughter is or what her situation is but I would have to imagine just about every college aged kid and younger could get by with a simple return. That is unless they’re into the meme stocks and crypto.
No completely free ones, if it’s free for federal, you’ll pay for state. Just filed with TurboTax and it was $128 for both… better than me trying to scrounge up all the correct forms and documents.
Watch out for the hidden fees. TT wanted to charge $39 for some direct deposit option, having the IRS direct deposit into my account was free…
Hers are rather basic. A little harder because of 3 different W2’s and also having to do state taxes in Two states ( She worked in Chicago last summer )
I believe Turo tax is Free on the Federal side bit a small fee for the State filing. My guess is two different fees because 2 different State returns
First state is free on most TurboTax editions. You have multiple state returns ?
Wait … they do charge for electric filing in each state, right ?
I have not even thought about filing yet. I have forms that will not be ready for me until mid-Feb at the earliest.
No completely free ones, if it’s free for federal, you’ll pay for state. Just filed with TurboTax and it was $128 for both… better than me trying to scrounge up all the correct forms and documents.
Watch out for the hidden fees. TT wanted to charge $39 for some direct deposit option, having the IRS direct deposit into my account was free…
I’m guessing you signed up for Turbo Tax Deluxe (not basic). Deluxe has you enter all of your forms (like 1098-E) to try and itemize. Even if you end up taking the standard deduction, that “attempt” to itemize costs you $$.
The $39 you mention is an optional fee you pay to a third party to have the turbo tax fees paid from your federal tax refund instead of directly paying the fees to TT with a credit/debit card. The $39 is the fee charged by the third party who receives the tax refund from the IRS and then deducts the $39 fee and TT fees and then sends you the balance. Essentially you’re paying $39 for the luxury of them taking your TT fees out of your tax refund versus you having to pay it directly.
<div class=”d4p-bbt-quote-title”>luttes wrote:</div>
No completely free ones, if it’s free for federal, you’ll pay for state. Just filed with TurboTax and it was $128 for both… better than me trying to scrounge up all the correct forms and documents.Watch out for the hidden fees. TT wanted to charge $39 for some direct deposit option, having the IRS direct deposit into my account was free…
I’m guessing you signed up for Turbo Tax Deluxe (not basic). Deluxe has you enter all of your forms (like 1098-E) to try and itemize. Even if you end up taking the standard deduction, that “attempt” to itemize costs you $$.
The $39 you mention is an optional fee you pay to a third party to have the turbo tax fees paid from the federal tax refund instead of directly paying the fees to TT with a credit/debit card. The $39 is the fee charged by the third party who receives the tax refund from the IRS and then deducts the fees and send you the balance. Essentially you’re paying $39 for the luxury of them taking your TT fees out of your tax refund versus you having to pay it directly.
That’s what it was, pay the turbotax fees out of my return instead of just out of my bank account.
Just did my high schoolers on H&R Block, Free for both Federal and State. And because he was under the standard amount he got all paid taxes back. He is going to start a Roth IRA
I ended up going with Turbo Tax. It was a little more difficult because of having state Taxes in Two states. I think I ended up paying 30.00 to have it all efiled.
She ended up going over the total amount to get it all back but did get almost all of it back. Funny thing was she ended up owing a small amount to Illinois state taxes. Overall she made out well. Now if only I could get as lucky – No Chance !!!
I ended up going with Turbo Tax. It was a little more difficult because of having state Taxes in Two states. I think I ended up paying 30.00 to have it all efiled.
She ended up going over the total amount to get it all back but did get almost all of it back. Funny thing was she ended up owing a small amount to Illinois state taxes. Overall she made out well. Now if only I could get as lucky – No Chance !!!
How much did you have to pay for the turbo tax product?
I’d used turbo tax for probably 15 years and last year I had enough. I could file my mothers taxes for just the efile fee but I had to purchase the TurboTax product for like $160 just to file our taxes. Back in the day it was like $30.
Also, be aware that turbo tax was sued last year by the FTC for deceptive “free” filing ads. https://www.ftc.gov/news-events/news/press-releases/2022/03/ftc-sues-intuit-its-deceptive-turbotax-free-filing-campaign
Last year I used Free Tax USA and I think it was truly free except for the efile fee. If it wasn’t free it was only like $20 for the produce that covered out tax situation.
I think my total with Turbo was like 30.00 and that was probably due to having to do state taxes in two states. The federal was free. and I think it would have been free for state as well if only one of them.
There are limits to the type of tax’s you can do for free on Turbo. It has to be all W2 wages I believe. There was a list of what returns could be done for free and what could not on their website
Here is the statement from Turbo tax’s website on what is free and what is not:
TurboTax Online: Important Details about Free Filing for Simple Tax Returns
If you have a simple tax return, you can file for free with TurboTax Free Edition or TurboTax Live Assisted Basic. You can also file with TurboTax Live Full Service Basic at the listed price.
A simple tax return is one that’s filed using IRS Form 1040 only, without having to attach any forms or schedules. Only certain taxpayers are eligible.
Situations covered (assuming no added tax complexity):
W-2 income
Limited interest and dividend income reported on a 1099-INT or 1099-DIV
IRS standard deduction
Earned Income Tax Credit (EIC)
Child tax credits
Student loan interest deduction
Situations not covered:
Itemized deductions
Unemployment income reported on a 1099-G
Business or 1099-NEC income
Stock sales
Rental property income
Credits, deductions and income reported on other forms or schedules (for example, income related to crypto investments)
No completely free ones, if it’s free for federal, you’ll pay for state.
Depends on your income and some other things but state can be free in MN: https://www.revenue.state.mn.us/free-electronic-filing
I’ve used H&R Block Deluxe for many years…. costs around $40 for the software/download….. then pay to E-file….
When you guys say free……. what exactly do you mean? are you E-filing or printing and mailing? direct deposit on refund?
I’ve used H&R Block Deluxe for many years…. costs around $40 for the software/download….. then pay to E-file….
When you guys say free……. what exactly do you mean? are you E-filing or printing and mailing? direct deposit on refund?
The Turbo tax one is all Efile. I think had my daughters been only 1 State it would have been free for both Federal and the state of Minnesota.
It did not allow the illinois one to be Efiled. That one I have to mail in.
https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free
free for AGI under $73k. May have to purchase state.
I purchased Turbo Tax Deluxe for $45. Federal efile is free, one state return is free but $15 for state efile. I am retired, have multiple income stream and pay foreign taxes (small $). I routinely get a Federal check, pay MN so I snail mail the state return. Stupid to have to pay the state since efile costs much less for them to process than paper. Turbo Tax meets my needs well. A friend who is a CPA & attorney, married to a minister (essentially an independent contractor) used to do their taxes by hand. I got her to try Turbo Tax, she loves it.
For the 1040EZ Turbo Tax and others are free online. As described above, it’s for W2 income, standard deduction and standard credits. Very simple.
When you guys say free……. what exactly do you mean? are you E-filing or printing and mailing? direct deposit on refund?
I was going to ask the same thing. You either pay for the software or you pay to efile. Not sure there is anything that is totally “free”.
I’ve used Taxslayer and Taxactonline the past few years. I used to be able to use the software, print my return and mail it…all for zero cost. They caught wise to that, now they force you to pay to either print it or efile.
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