Using a tax preparation service or a professional tax preparer is great if you can afford it. But many people are unaware that there are free tax software options available online. No matter how you file taxes, there is free tax software on the market that can help you get it done quickly and efficiently. Here is a look at some of the free tax software options that could help you during tax season. Unlike other free tax filing software that may charge for state returns or certain deductions, Cash App claims there are no restrictions. You can file state or federal taxes for free regardless of the deductions or credits you choose. Credit Karma/Cash App Taxes Advantages
High customer ratings: Nearly four million returns have been filed with an overall rating of 4.8 out of 5 stars.Totally free: There are no hidden fees or restrictions, regardless of state or federal filing or the deductions and credits you choose.Tax calculator: You can estimate your tax refund before downloading the app to file.Faster refunds: Choose to receive your refund into Cash App to get it up to two days earlier.Accurate: Cash App guarantees your tax filing is accurate and double-checks your return before submitting it.Maximum Refund Guarantee: You’ll receive the maximum refund you’re entitled to. Cash App will reimburse you up to $100 if you amended your tax refund with another service and received an additional refund.
You earn less than $100,000 in taxable incomeHave no dependents to claimFile as Single or Married Filing JointlyClaim the standard deductionCan claim education creditsCan deduct your student loan interest
Tax situations not covered would include:
Earned Income Tax CreditSchedule A (itemized deductions)Schedule C (Self-employed) to name a fewAnd more
TaxSlayer Simply Free advantages
Simple e-filing: TaxSlayer Simply Free allows users to prepare and e-file basic 1040 returns with ease with guaranteed accuracy using a step-by-step instruction guide. Prior returns and support: TaxSlayer will import the data from a previous year’s tax return for free, even if it was with another tax preparation service – saving you time. They also offer unlimited email and phone support for users. Education expenses: You can claim education credits and even deduct student loan interest, helping you maximize your return.
Multiple W-2sUnemployment incomeSocial Security incomeStudent Loan Interest (Form 1098-E)Those claiming children as dependents
Those who contribute to health savings accounts (HSAs), have itemized deductions, or are Schedule C (Self-employed) are not eligible for the free service and must upgrade to a paid tier of service. H&R Block Free Online advantages
Simple importing: Importing information and data is easy with the online version. Take a picture of your W-2 and upload it. Importing last year’s taxes is just as easy. You can use the mobile app to ensure those tasks get completed. Multiple income types: Those with retirement contributions, retirement income and interest incomes are also qualified for the free service.Education deductions: H&R Block Free Online allows you to deduct student payments, tuition and loan interest without having to upgrade to a paid tier.
Free federal income tax and state tax returns are available and TurboTax Free Edition supports many of the important, commonly filed forms and schedules:
US individual income tax return (1040)Unemployment income (1099-G)Schedule EIC (Earned income credit)Form 1099-INT (Interest income)Form 1040-V payment vouchers
Certain forms and schedules associated with more complicated returns, such as Schedule SE (Self-employed), Schedule D (Capital gains and losses), and educational forms, such as 1098-E and T (Student loan interest and tuition statement) require a paid tier. TurboTax Free Edition advantages
Maximize refund: If you get a larger refund using a different service, TurboTax Free Edition users are entitled to a payment of $30. If IRS penalties should arise from calculation errors, TurboTax will pay the penalty and interest. You will be shown if you qualify for additional credits, to help get you a larger return.Teaching tools: You will see your updated tax refund in real-time as you work through the process, and personalized insights will explain why you are receiving certain credits, helping you better understand your taxes. Support and security: TurboTax Free Edition offers some of the most robust customer services of all the free tax software programs available, and it’s one of the most secure cloud services.
In addition to complementary federal filing, TaxACT provides free state tax returns for: AR, AZ, GA, IA, ID, IN, KY, MA, MI, MN, MO, MS, MT, NC, ND, NH, NY, OR, RI, SC, VA, VT, and WV. Using TaxACT is fairly simple. You can manually import your information or import PDF files from other services such as H&R Block or TurboTax. There’s a glossary with over 300 terms in addition to TaxAct Alerts that ensure accuracy to help you avoid an audit. TaxACT guarantees your return is correct for up to $100,000. And although it’s free, you can access your returns for up to seven years. TaxACT Free Edition Advantages
Free state and federal tax returns: Besides the federal income tax filing, you can file state taxes for free for 23 states.Guided filing: Follow the platform’s step-by-step process to ensure accuracy and make sure you didn’t miss a deduction. Free mobile filing: You can also file for free using the TaxACT Express mobile app for your Android or iOS smartphone or tablet.
Manual filing: Manual tax filing is cut and dry. It is done by completing the IRS’s Form 1040, known as the Individual Tax Return form. Once it is completed, it is mailed to the IRS. However, paper tax returns are the slowest to process. The IRS had a backlog of nearly 3 million amended tax returns and a processing time of 20 weeks in the fourth quarter of 2021. Using a tax preparation service or tax professional: There are numerous tax preparation services and tax professionals to aid you in your quest during tax season. Some individuals opt for professional services to help them wade through the sea of forms and tax jargon – tax credits and deductions. Using tax software programs: Tax software programs are a popular option as well. Many online programs are offered to help walk people through the process of filing their taxes electronically. Of course, many of these software programs come with a cost but it may be well worth the small investment to receive your tax refund faster. Plus, most tax software programs come with fail-safe checks that ensure accuracy and maximize your deductions.
The new tax filing extension deadline is quickly approaching. For those with common, less complicated tax filings, such as W-2 employees, the process can be more simple and even free. Many of the top-tier tax preparation services offer free editions for simple tax filers who qualify, bringing their expertise at no cost to you. Regardless of whether you file yourself using online tax software or a tax professional, you still have to do most of the legwork to get organized. You can make tax filing easier by getting organized in advance in a few ways:
Find and review the previous year’s tax return: Last year’s tax return can be a good starting point to determine what type of deductions you took and what figures and documents you may need to collect for the current year. Save and categorize your receipts: If you plan on taking deductions for specific categories such as medical or work-related expenses, keep your receipts organized by categories such as uniforms, dry cleaning, prescription drugs, and more. Download your tax forms: You could always wait to receive your 1099s in the mail or you can download them for free from the financial institution issuing them. Some of the most common 1099s you may receive are for your investments and for interest earned through your bank or credit union.
