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FreeTax.com is a tax preparation software owned by Liberty Tax and has historically been one of the few companies that could legitimately claim free tax filing for all users.
However, the “free” portion of FreeTax.com is in jeopardy this year. While users can prepare their tax return for free, they must pay to file electronically. Given this wrinkle, most users can find better software at comparable prices.
Here's what you need to know about FreeTax.com this year. Be sure to check out our full list of the best tax software.
Editor's note: FreeTax.com no longer exists. Parent company Liberty Tax has closed its FreeTax.com brand for the 2023 (2024) tax year. FreeTax.com was one of our lowest-rated tax filing solutions, so it won't be overlooked by many. If you have used FreeTax.com in the past, we encourage you to visit Freedom tax Instead, or better yet, check out our list of best tax software for 2024.
- Just print and send taxes for free
- E-File only charges $14.95 if you get a prepaid debit card
- Due to the long delays, we do not recommend sending taxes by mail
FreeTax.com – Is it really free?
FreeTax.com allows users to prepare and print their taxes for free. However, they charge a $19.95 fee for E-File if you accept your refund with a prepaid debit card. Those wishing to receive their refund check by other means must pay $39.95 to file electronically.
What's new in 2023?
Last year, FreeTax.com, a brand of Liberty Tax, relaunched it as a free tax site. The FreeTax.com website uses the same software as LibertyTax, eSmartTax, and several other major tax sites, including 1040.com.
However, unlike previous years, Free contains an asterisk. The company supports free state and federal tax form preparation. Users can then print out their forms and submit them by mail. Email sign-up requires users to pay $19.95 (or $14.95 if they accept their refund with a prepaid debit card).
Choice between instructions and form selection.
Does FreeTax make filing taxes easier in 2023?
FreeTax.com works well for people with basic tax situations. It can easily process W-2 income, interest, dividends, and major deductions and credits. Even people who are simply self-employed can use the software successfully.
However, FreeTax.com is not designed for complex tax situations. Active stock or crypto traders could spend hours manually entering each transaction.
Landlords must use the search function to find depreciation sheets.
As users work with the software, the software provides little feedback to help users determine whether they are entering their information correctly. A user who enters information incorrectly could have their tax information dramatically changed due to a simple and avoidable error.
Overall, FreeTax.com makes tax filing easier for some users, but those with more complex tax situations should avoid it.
FreeTax features
Although FreeTax.com doesn't offer outstanding software, there are some features that make it compelling.
Prepare tax returns for free
FreeTax.com allows users to prepare and print their state and federal tax returns for free.
Free multi-state filing
FreeTax.com allows users to file taxes in multiple states. It is the only free tax software that supports multi-state tax return filing this year. This is a notable disadvantage of other free software like Cash App Taxes.
Related:
Do I have to file taxes in multiple states?
Guided navigation
FreeTax.com users can easily navigate the software by answering questions. Based on a user's answers to the questions, the software prompts the user to enter information from relevant tax forms. However, users with more complex income (investments, real estate, self-employment) will need to select their income from the menu before receiving further guidance from the software.
Example of guided navigation.
FreeTax Cons
These are some areas where FreeTax.com fell short this year.
No option to import forms
Users cannot import tax forms such as W-2 forms or 1099 forms. All tax information must be manually transferred into the FreeTax.com software. This increases the amount of time users have to spend on tax preparation. However, no bargain software offers import options this year.
Difficult to use for complex income streams
Figuring out how to write off expenses is a big challenge in software. It is extremely difficult for landlords and self-employed people to use FreeTax.com to prepare their taxes.
No section summaries
Several companies offer section summaries that help users find out if they have entered all the required information. Without section summaries, FreeTax.com leaves users guessing about whether they are using the software correctly.
FreeTax.com Pricing and Plans
While all users can prepare their taxes for free, FreeTax.com charges a fee to file a tax return electronically. Details of e-filing costs can be found below.
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Taxable income of less than $100,0000 |
Taxable income over $100,000 |
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How does FreeTax compare to the competition?
FreeTax.com allows users to prepare and print their tax forms for free, but they must pay to file electronically. The other companies integrate e-filing into the software.
To fairly compare FreeTax.com, we have included a dedicated line comparing e-filing costs. We compared it to other bargain software, including Cash App Taxes (free) and TaxHawk. We also added 1040.com because it uses the same software under the hood. From a user experience perspective, we prefer Cash App Taxes and TaxHawk over FreeTax.com
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$14.99 per additional state |
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Retirement income (SS, pension, etc.) |
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cell |
Is it safe and secure?
FreeTax.com uses both encryption and multi-factor authentication to ensure the security of user information. It complies with industry standards applicable to tax filing companies.
Although the software is free to use, users can rest assured that FreeTax.com and its parent company Liberty Tax will keep user information secure.
However, no company can guarantee information security. Any information transmitted online could be hacked, so users should carefully consider the risks before contacting a tax filing company.
Final thoughts
FreeTax.com is an acceptable software for filers with simple tax returns. It is not ideal for people with complex income such as stock or crypto trading or landlords. However, FreeTax.com is not truly free in 2023. The cost of e-filing makes it more expensive than inexpensive software like FreeTaxUSA or Cash App Taxes.
If you want to prepare and print your files, FreeTax.com might be a good option, but most others should avoid it this year. Also, keep in mind that if you print and mail your tax return, you may have to wait months for your tax refund.
FreeTax FAQ
Let's answer some of the most common questions people ask about FreeTax.com.
Can FreeTax.com help me report my crypto investments?
While FreeTax.com supports crypto investing, users will find the interface cumbersome. The software requires users to manually enter each transaction one at a time in a long, cumbersome form.
The first part of the stock and crypto trading form.
I did not receive the full amount of the expanded child tax credit. Can FreeTax.com help me get the balance?
FreeTax.com guides users through questions to help them claim the correct child tax credit amount. Parents who have not received the advance payments will receive a refund of the balance of the credit.
Can FreeTax.com help me file state tax returns in multiple states?
FreeTax.com supports multi-state filing at all levels. Users do not have to pay any additional costs for filing in multiple states.
Will FreeTax.com keep my information secure?
FreeTax.com has no history of security breaches and has robust security measures in place to ensure the safety of user information. However, the company is based online and cannot guarantee the security of user information. Users must consider whether they are willing to take this risk before using the software.
Does FreeTax.com offer refund advance loans?
In 2023, FreeTax.com does not offer cash advance loans with refund.
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