1040.com Review: Why I Switched Back to FreeTaxUSA for 2025 Filing

Tax prep software can definitely be hit or miss depending on your specific situation! I've used both platforms you mentioned and can offer some insight. 1040.com partners with TaxSlayer behind the scenes, which sometimes causes delays with certain state forms, especially for more complex state tax systems like New York. This happens because they prioritize high-population states differently. The IRS Free File recommendations are based on meeting their program requirements, not necessarily on having all state forms ready early in the season. FreeTaxUSA is actually built on their own proprietary system and tends to have state forms available earlier, though you're right that they charge for state filing. The $24 state fee is actually still lower than many competitors. For most filers with relatively straightforward situations (W-2 income, standard deduction), both platforms will calculate identical results, so it really comes down to user experience and form availability. If you have more complex situations like self-employment, multiple states, or investment income, sometimes paying for a more robust solution makes sense. If you're committed to completely free filing, some states (including NY) offer their own direct filing options from their tax department websites that cost nothing.

After a lot of headaches with TurboTax last year charging me hidden fees, I discovered taxr.ai (https://taxr.ai) and it's been a game-changer for comparing tax filing options. I uploaded my W-2 and last year's return, and it analyzed which platform would be best for my situation - including showing me exactly what each would charge based on my specific forms and situation. For me, it recommended FreeTaxUSA too because I have some investment income and a side gig, but it actually showed me that 1040.com wouldn't support some of my forms until mid-February. Saved me from exactly the frustration you experienced! The analysis also showed me exactly where each platform hides their fees and what my final out-of-pocket would be. The document uploading feature was super helpful too - I just snapped pics of my tax forms with my phone and it extracted all the data so I could see exactly how my tax situation affected pricing across different platforms.

Just want to follow up about taxr.ai (https://taxr.ai) that someone mentioned above. I decided to try it out because I was stuck halfway through TurboTax and getting frustrated with their pricing. I uploaded my W-2 and 1099-NEC, and it immediately showed me that TurboTax was going to charge me $89 for self-employment when FreeTaxUSA would do it for $0 federal + $24.99 state. It also explained exactly which forms I needed and even showed me that Credit Karma Tax (now Cash App Taxes) would be completely free for my situation but doesn't support multiple state filing which I needed. The comparison saved me over $60! Just finished filing through FreeTaxUSA and the whole process was smooth - way better than giving TurboTax that money for basically the same result. Definitely worth checking out if you're deciding between tax services or getting surprised by hidden fees.

For anyone dealing with tax filing issues or needing to talk to someone at the IRS about their return - I wanted to share something that worked amazingly well for me. After trying to call the IRS for THREE DAYS (kept getting disconnected or "call volume too high" messages), I found this service called Claimyr (https://claimyr.com). It basically holds your place in the IRS phone queue and then calls you when an actual agent is on the line. You can see a demo of how it works here: https://youtu.be/_kiP6q8DX5c I was super skeptical at first, but I was desperate to resolve an issue with my previous year's return that was holding up my current filing. Used the service around 10am, and about 45 minutes later I got a call connecting me directly to an IRS agent! No waiting on hold, no phone tree hell. The agent helped resolve my issue in about 15 minutes. Honestly, it saved me so much frustration compared to my previous attempts calling the IRS directly. Just sharing in case anyone else is running into IRS phone issues while sorting out their tax filing.

I need to eat my words and follow up on my skeptical comment about Claimyr. After continuing to fail getting through to the IRS for another two days trying to resolve an issue with my stimulus payment that was affecting my refund, I gave in and tried it. I can't believe how well it worked. I submitted my request around 2pm, went back to work, and about an hour later got a text that I was being connected to an agent. Picked up the phone and there was an actual IRS person on the line! No waiting, no automated system, just straight to a human who helped me resolve my issue. The agent never questioned how I reached them, and I got my issue resolved in one call that would have otherwise taken me days of redial attempts. For anyone struggling to reach the IRS by phone (especially during busy filing season), this service is absolutely worth it. Saved me hours of frustration and my refund is now processing correctly.

I've been using FreeTaxUSA for the past 3 tax seasons after switching from TurboTax, and it's great for most situations. However, one thing to watch out for - if you have cryptocurrency transactions, FreeTaxUSA's interface for handling those is pretty basic. I had about 50 trades last year, and entering them manually was a nightmare. Ended up using a separate crypto tax software (CoinTracker) to generate the forms and then just entered the totals into FreeTaxUSA. Just something to be aware of if you're crypto-heavy. Has anyone compared how 1040.com handles crypto compared to FreeTaxUSA? Or found a better option for crypto-heavy tax situations?

For anyone on the fence about FreeTaxUSA vs 1040.com - I just finished filing with FreeTaxUSA and wanted to add one thing the original poster didn't mention. FreeTaxUSA now offers a feature where you can import your previous year's return from other tax services (including TurboTax, H&R Block, etc). This saved me SO much time in the setup process - all my personal info, dependents, employer details carried over automatically. It's under "import data" on the first few screens. Also FYI - if you're active duty military, FreeTaxUSA gives you both federal AND state completely free! Found that out because my husband is in the service.

Great writeup about your experience! I had a similar issue with 1040.com last year but with California state forms - they weren't ready until late February. Really frustrating when you're trying to file early. One thing I'd add for anyone considering these platforms: check if your state has its own free filing option directly through their tax department. California's CalFile is completely free and worked great for me, though it's pretty basic. Might be worth checking if New York has something similar before paying the $24 FreeTaxUSA fee. Also, for future reference, the IRS Free File page usually notes when state forms aren't available yet - it's in small print under each provider's description. Easy to miss but can save you time if you check before starting.