Founded in 2001 by a team composed of a Certified Public Accountant (CPA) and software developers, FreeTaxUSA, a company owned by TaxHawk Inc., launched a tax software that has helped millions with the filing of their state and federal tax returns. Today, FreeTaxUSA employs more than 150 hardworking people who work as tax preparers, tax advisors, and customer service representatives. They bring great value and outstanding service to help their clients in their tax preparations.
Is FreeTaxUSA a Legit Tax Software?
FreeTaxUSA is the leading software in its field with millions of securely filed state and federal tax returns. They are committed to keeping producing quality work and keeping their clients satisfied with their service. They employ a team of tax professionals to conduct uncompromising tests on the software to keep it updated and to make sure the software complies with the changes and updates in the state and federal standards and tax codes. TaxHawk guarantees its software is subject to every state’s demanding approval process by the IRS and major tax regulatory agencies. This process verifies the reliability of FreeTaxUSA to be up to date and be compliant with tax-related standards. FreeTaxUSA software has consistently received A+ ratings from the respected Better Business Bureau (BBB), a testament to their commitment to their excellence in customer service. They are authorized by the IRS to serve as a tax e-file provider. They are one of the founding members of the IRS Free File Alliance.
Services Offered by FreeTaxUSA
FreeTaxUSA offers a simple, straight-to-the-point, two-option system. They have a Free Version and a Deluxe Version. This two-version option has been proven to be effective. It removes the confusion from comparing three or four different priced points and sets of services. It also lessens the suspicion of added fees and hidden charges since the two-option setup is pretty straightforward.
The Free Version
The FreeTaxUSA Free Version provides the users the basic services like e-file service, account information rollover, and tax return printing. Since this is a free version, these services come at a limit. Added services will generate extra costs for the user. The free version should be a good option for individuals with lower income or businesses that run on a small scale.
The Deluxe Version
The FreeTaxUSA Deluxe Version, on the other hand, offers an advanced set of services that cater to the needs of individuals with a higher income and bigger businesses. This version comes with the support of professional tax specialists and tax preparers. Customers of the deluxe version are entitled to estimate their taxes, view credits and deductions, calculate refunds, print and electronically file tax returns, make corrections on tax returns, create responses to IRS notices and letters, make preparations for IRS audits, and updating of tax information, and many more. You can obviously do more with the Deluxe Version. It is more versatile and packs a lot of features you might need. With its team of professional support, you are getting more value for your money.
Tax Situations Covered by FreeTaxUSA
With its commitment to be the best service provider in the market today, FreeTaxUSA covers an array of different and difficult tax situations. Situations like adding homeownership, dependents, joint filing, and deductions are just among the number of situations they support. FreeTaxUSA also caters to different income types like W2, freelancers, rental properties, S Corps, Royalties, Jury Duty, Unemployment, Debt Cancellation, Social Security Income, Alimony and Child Support, Estates and Trusts, and Grants. Their success in catering to these situations has solidified their reputation in the field of software for tax preparation. It serves individuals, businesses, and organizations at different scales and sizes. The best route to take is to talk to their team before getting a deluxe account to make sure your tax situation is covered and addressed in the software. Do take note that several situations are not included in their services like Farm Rental, Archer MSAs, Installment Sales, Previous year tax credit, and a few more.
The Benefits of Using FreeTaxUSA
Getting the Deluxe version will be a great boost to your income tax return’s preparation and electronic filing. You can easily try out a Free Version with the basic services and see if it applies to your situation and tax preparation needs and upgrade to a deluxe version as needed.
Covers a Variety of Tax Situations
As stated above, FreeTaxUSA is armed and programmed to handle many difficult tax situations. FreeTaxUSA does not charge extra costs just to add a service or handle a certain situation. Both the free version and the deluxe version provide tax forms for your tax situation. With the Deluxe Version, you have the support of the team behind you.
With years of expertise on its back and as an authorized e-file provider by the IRS, FreeTaxUSA is a secure platform to handle tax preparation. The software encrypts all the information entered into the platform. It creates layers of verification processes for security and privacy through protection agencies like Norton, SecurityMetrics, and Trust. This is an industry-standard process of making sure all the data in the platform is safe and secure.
Delivers Guaranteed Accuracy
FreeTaxUSA conducts rigorous tests and updates in preparation for each new tax season. Forms and entries are tested to comply with the present tax rules and regulations and follow the most updated tax codes. This is where the team of tax specialists works hard to make sure that the software reflects the current IRS landscape. This method has consistently produced satisfactory results for the clients, faithful taxpayers, at FreeTaxUSA. TaxHawk ensures its clients that when penalties and interests are incurred due to errors in the software, the company will take care of the interests and penalties.
Gives Access to Superb Customer Support
The customer service team at FreeTaxUSA has been doing amazing work in addressing their client’s queries and requests. Being an online tax preparation website, they have added layers of avenues to help their clients. They have a dedicated page for customer support topics, email support, a chat feature, and a Q&A Database. The Free Version can only access the first two avenues.
Provides Audit Assist
The Deluxe Version comes with an Audit Assist feature, a feature being lauded and recommended by the clients who have availed of the deluxe version. What this feature provides is access to a great and professional pool of audit specialists who have established their expertise in supporting clients in preparation for their IRS Audit. With this feature, Deluxe version users get access to a database of essential information relevant to an IRS audit. Although praised for its efficiency in giving quality service, the audit assist comes at a limitation. TaxHawk made it clear that the software’s audit feature will not handle state returns. The audit feature will not provide a representative who will directly speak to the IRS on behalf of their client. The main task of the Audit Assist feature is to help you in preparing your answers and crafting the most appropriate responses during an IRS audit. You have a team of experts to guide you in providing the appropriate information you should give in an audit process.
Gives Access to Online Backup and Account Rollover
FreeTaxUSA’s Free and Deluxe versions allow access to an online back-up for the completed tax returns that can be automatically imported to the prior tax year’s information and to the present year’s tax return, provided that FreeTaxUSA has been used for at least two years consecutively. FreeTaxUSA also can import tax-related information from other tax software as long as the information is in PDF format.
Presents a User-friendly Interface
Making sure to always be concise and straightforward, FreeTaxUSA designed an easy-to-use, customer-friendly interface on their website. This benefits the taxpayers who are doing this for the first time the most but it is also a great asset to those who have years of experience with filing their tax returns online.
Creates Budget-Friendly Options
While FreeTaxUSA offers a free version, you can still get added services at affordable price points. You will still pay for services like preparation and filing of state tax returns, tax return amendments, priority customer support, printed tax return, and other services not offered in the Free Version.
How much does FreeTaxUSA cost?
FreeTaxUSA offers an entry-level, FREE Version. This will cost you, well, zero dollars. You can avail their Deluxe Version which starts at $6.99 for more advanced features.
FreeTaxUSA Prices for Specific Services (only Applies to Free Version):
- $5.95 printed tax return
- $5.95 priority customer support
- $9.95 amended tax return
- $12.95 printed and bound tax return
- $12.95 state tax return preparation and filing (charge is per state)
Conclusion FreeTaxUSA is a reliable software that has helped millions of its customers — individuals, organizations, and businesses in their tax preparations and through many difficult tax situations. It is the leading software in the industry that continues to actively develop and update the quality of their premium services.