Is FreeTaxUSA Legit? Our Review for 2022

3 min read

free tax usa

Gone are the days when you had to file your taxes using pen and paper. In this day and age, they are various online tax filing Services out there. The hard part isn’t finding one, it’s finding the right one to use that’s the most affordable. That’s where FreeTaxUSA comes in. Does it live up to the hype?

One of its biggest selling points is that it is currently endorsed by the IRS Free File Alliance. This basically helps people that earn up to $69,000 per year (or less) file their taxes completely free! That’s a bargain!

Now that we have a basic understanding of what Free Tax USA is and what it offers, let’s get down into the details.

What is FreeTaxUSA?

FreeTaxUSA is an online tax filing service that allows users to prepare, complete, and submit their Federal Tax Returns. They also allow users to file their state taxes. This however costs $14.99 (at the time of writing this).

How much does FreeTaxUSA cost?

Here is the good news! Anyone filing their Federal Taxes pay $0.00 on this service. That means it’s completely free! However, filing your state taxes (as mentioned above) will cost you about $14.99 (at the time of writing this).

For a detailed look at their pricing table, take a look:

freetaxusa pricing

What is the Deluxe Edition?

While looking at their pricing structure, you might have noticed their Deluxe Edition and wondered what it is and if you should use it? Well, here is what that offers you:

  • Live chat: You can ask support questions to members of the FreeTaxUSA team using live chat, and getting your answers quicker
  • Free Amended Tax Returns: If you file your taxes but want to amend something, it would be free. If you are using the free version of FreeTaxUSA, that amendment would cost $14.99.
  • Priority Support Questions: By using the Deluxe Edition, questions and inquiries that you have would be answered first before anyone else.
  • Tax Auditing Assistance: In the event that you are audited by the IRS, staff will help you prepare for an audit.

Now, do I think the Deluxe Edition is worth it? Personally, I don’t think so. Unless you have a very complicated return and filing process, then for 90% of you out there, the Free Version will do just fine.

For the other 10%, I would definitely consider it since it’s so cheap already! 🙂

Who is eligible to use FreeTaxUSA?

Here comes the best part. Not only is FreeTaxUSA completely free to use for your Federal taxes (except for filing state taxes), anyone is free to use their service.

This includes individuals, entrepreneurs, earnings from side hustles, or even those that are simply filing their student loans. As long as you are filing your individual Federal Tax Returns, it will be completely free.

How to use it

The great thing about FreeTaxUSA is that it is very easy to use and requires nothing to download to. You simply create an account, fill in all the details, and FreeTaxUSA will do the rest.

Unlike other well-known tax services (like TurboTax), it doesn’t ask you step-by-step detailed questions regarding your income. You kind of have to know your details beforehand and fill in the information.

The great thing though is that every step has a little question mark that explains what is being required. That makes it much easier to navigate.

What kind of income types does it support?

If you have various streams of income, then this it’s probably a question you are wondering. I had the same question as well since I also have multiple streams of income. The great news is that FreeTaxUSA supports a really good number of income streams.

Here are a few examples:

  • W2 Income
  • Social Security
  • Self Employment
  • Rental Property Income
  • Estates and Trusts
  • Alimony
  • Tuition
  • Winnings (such as prices/lottery)
  • and much more

This list probably covers 99% of people filing their federal taxes. In that case, you are probably covered 🙂 This awesome flexibility means that you don’t have to worry about your source of income.

Refund Maximizer Tool

once you have gone through all the steps of entering all your information, FreeTaxUSA also has a Refund Maximizer Tool. This little tool goes through your entire tax return and asks you additional questions that could potentially earn you more tax breaks and a higher refund.

The great thing is that, as you go through your tax return and fill in your details FreeTaxUSA has a refund tracker that shows you how much you should expect to receive from the IRS. Super handy and exciting to see that number grow as you fill in your details.

Once the Maximizer Tool identifies any potential tax breaks, it will let you know and help you fill in these extra details. If it doesn’t find anything extra that you can do, then you will be able to view a summary off all your details at the end of. You are not ready to file 🙂

Is FreeTaxUSA safe?

In short, FreeTaxUSA is indeed very safe. It allows for multi-factor Authentication to secure your account and you details.

This feature isn’t required to create an account, but I would highly recommend it to ensure that no one can access your information.

Can I file Crypto-Currency earnings?

Yes, you absolutely can! FreeTaxUSA supports filing of cryptocurrency gains. The great part is that it offers help documentation on how to file this accurately.

Final thoughts

Like many online services out there, there is a pretty decent number of tax filing services that you can choose from. They all do similar things, but you can’t beat the completely free federal tax filing.

This service is one of the best out there that is extremely affordable, compared to the other tax filing services out there.

So if you’re wanting to file your taxes and want the best bargain, then definitely look into using FreeTaxUSA this year. Super easy to use, and nothing to lose 🙂

File Your Taxes for FREE using FreeTaxUSA here >>>>

If and when you use it, let me know about your experience below.

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