I made the switch from TurboTax to FreeTaxUSA two years ago and it was one of the best financial decisions I've made. For your situation with W-2 income, mortgage interest, and charitable donations, FreeTaxUSA is absolutely perfect and will handle everything you need. The interface might look a bit dated compared to TurboTax's flashy design, but it's actually more straightforward - no upselling at every step trying to get you to upgrade to premium versions. The tax interview process asks all the right questions and the forms are clearly laid out. What really sealed the deal for me was the price difference - I was paying over $120 with TurboTax for federal and state, now I pay $15 total with FreeTaxUSA. The accuracy has been spot-on both years I've used it, and they have the same guarantees as the big names. My advice: give it a try this year. You can always start your return, see how it feels, and bail out if you're not comfortable (though I doubt you will be). The money you save will more than make up for any minor learning curve.

I switched from TurboTax to FreeTaxUSA last year and it was absolutely the right call! I was in almost the exact same situation as you - W-2 income, mortgage interest, charitable donations, and getting tired of TurboTax's increasing fees. The interface is definitely more no-frills, but honestly I found that refreshing. No constant pop-ups trying to upsell you to premium features you don't need. It walks you through everything step by step and explains each section clearly. For straightforward taxes like ours, it covers all the forms you'll need. I saved over $100 compared to what I was paying TurboTax, and my refund came through just as quickly. The accuracy has been solid - I even had my CPA friend double-check my first year using it and everything looked good. One tip: take advantage of their free federal e-file and just pay the small state fee. You can also start your return for free and see how you feel about the process before committing to anything. I think you'll find it's much simpler than you're worried about!

I'm a little confused by some of the advice here. When I had this exact problem (underwithholding on an RMD), I just filed a Form W-4V to increase withholding on my Social Security payments for the remainder of the year. Worked perfectly to make up the difference and avoid any penalties.

For future reference, you might want to consider setting up quarterly estimated tax payments if your father regularly has underwithholding issues. Many retirees find that the standard 10% withholding on RMDs isn't sufficient, especially if they have other income sources like pensions, Social Security, or investment income. The IRS has a pretty good estimated tax worksheet (Form 1040ES) that can help you calculate what percentage to withhold or how much to pay quarterly. It takes into account all income sources and helps avoid the scramble at year-end. I learned this the hard way after dealing with penalties for my mom's underwithholding situation a few years back. Also worth noting - if you do end up with an underpayment penalty despite making the Q4 payment, you can sometimes request a waiver if there were reasonable circumstances for the underwithholding. The IRS is surprisingly understanding about honest mistakes, especially with elderly taxpayers managing complex retirement income.

Does anyone know if you have to pay self employment tax if your net business income was negative? I had about $2,800 in freelance income but spent over $3,000 on equipment and supplies. Will I still have to pay the SE tax even though I technically lost money?

This is a really helpful thread! I'm dealing with a similar situation where I have both W-2 income and some 1099 contractor work. One thing I learned the hard way is that even if you have taxes withheld from your regular job, it doesn't necessarily cover the self-employment tax from your side income. The SE tax is calculated separately and can't be satisfied by withholding from your W-2 job. So even if you think you've had "enough" taxes taken out throughout the year, you might still owe when you file if you have self-employment income. For next year, I'm planning to either increase my W-4 withholding at my main job to cover the expected SE tax, or make quarterly estimated payments specifically for the self-employment portion. The IRS has worksheets to help calculate how much you should set aside - it's usually around 25-30% of your net self-employment income to cover both the SE tax and any income tax on that earnings.

Just remember if you invest that money, any gains are taxable. Learned that one the hard way lol

Sorry for your loss, Sean. Just went through something similar with my dad's estate last year. The tax professional above is spot on - inheritance itself isn't taxable income for you. One thing to keep in mind though is the "stepped-up basis" rule - if you inherited assets like stocks or property, their value gets "stepped up" to fair market value at the time of inheritance, which can save you on capital gains taxes later if you sell. Definitely keep good records of everything!

I just went through this with TaxAct too. For interest over $1,500, you do need Schedule B. But here's a tip: switch to FreeTaxUSA. They include Schedule B in their free federal filing. I switched last year when TurboTax tried to upcharge me for the same reason. FreeTaxUSA charged me $0 for federal with Schedule B (just had to pay like $15 for state).

Pro tip: don't let tax software upsell you! Schedule B is literally just listing your interest sources. Mine looked like this: Bank Name: $2,200 Total: $2,200 That's it! I used Cash App Taxes (formerly Credit Karma Tax) and paid $0 for both federal and state, including Schedule B. TurboTax is notorious for making simple things seem complicated so they can charge you.