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I switched from H&R Block to FreeTaxUSA last year and couldn't be happier. It's only $15 for state filing (federal is free), and it walks you through everything step by step. I had some complicated stuff with crypto transactions and rental income, and it handled everything perfectly. The interface isn't as fancy as TurboTax, but it asks all the same questions and found all the same deductions for WAY less money. H&R Block wanted to charge me $389 for their premium service, but FreeTaxUSA cost me just $15 total.
Do they offer audit protection? That's the main reason I've stuck with the big companies.
Yes, they do offer audit assistance for an additional $7.99. It's not the same as full audit representation, but they provide guidance on what documents you need, help you understand what the IRS is requesting, and assist with preparing your responses. I actually think their audit assistance is more straightforward than what H&R Block offers. H&R Block's "Peace of Mind" warranty has a lot of fine print exclusions, and they often try to upsell you on more comprehensive audit defense. FreeTaxUSA's offering is simpler and much more affordable, while still giving you professional guidance if you get audited.
I strongly recommend finding a local independent CPA instead of any chain tax service. After getting burned by H&R Block (they missed over $3,000 in deductions for my small business), I found a local CPA through my chamber of commerce. The difference is night and day! She charges me $400 flat rate no matter how complicated my return gets, is available year-round for questions (not just during tax season), and has saved me thousands by helping with tax planning throughout the year. Most importantly, she actually takes time to understand my business and financial situation.
How did you vet the CPA before hiring them? I'm nervous about just picking someone random.
Great question! When I was looking for a CPA, I asked potential candidates about their experience with businesses similar to mine, requested references from current clients, and verified their credentials through the state board of accountancy website. I also had an initial consultation (most offer this free or for a small fee) where I asked about their approach to tax planning, how they stay current with tax law changes, and what their communication style is like. The CPA I chose was recommended by two other small business owners in my industry, had 15+ years of experience, and took time during our consultation to explain strategies specific to my situation rather than giving generic advice.
Just want to point out that the process might be simpler than some are making it sound. I'm from the UK selling through Amazon US, and the state I needed a permit in (Washington) had a streamlined registration process for foreign businesses. The key is researching the specific requirements of the states you're dealing with. For example, some states have simplified seller use tax returns for marketplace sellers. And five states (Alaska, Delaware, Montana, New Hampshire, and Oregon) don't even have sales tax! Look into whether you qualify for any streamlined filing programs or reduced frequency returns for smaller businesses. My permit requires filing only annually because my volume is relatively low.
As someone who went through this exact situation last year (I'm based in Germany selling on Amazon US), I can confirm what others have said - you absolutely need the sales tax permit first to get a valid resale certificate. One thing I'd add that hasn't been mentioned much: check if your state offers any expedited processing for foreign businesses. When I registered in Nevada for my supplier there, they had a "priority processing" option that cut the wait time from 4-6 weeks down to about 10 business days for an additional fee. Since I had suppliers waiting for my resale certificate, it was worth the extra cost. Also, don't forget about the ongoing compliance requirements. Even with Amazon handling your sales tax collection, you'll still need to file periodic returns in states where you have permits. Most states allow electronic filing which makes it easier for us international sellers, but you'll want to set up reminders since the penalties for late filing can be steep. One last tip: keep detailed records of all your wholesale purchases with resale certificates. If you ever get audited, you'll need to prove those purchases were legitimately for resale and not for your own use.
Btw is anyone else having issues with TurboTax when trying to figure this out? It keeps giving me confusing prompts about whether i "can" be claimed vs if i "will" be claimed as a dependent.
Yeah, TurboTax is super confusing on this! The question isn't whether you WILL be claimed, but whether you CAN legally be claimed based on the tests the others mentioned. I ended up using FreeTaxUSA instead because their questions were more straightforward about dependency status.
Great question, Malik! The key thing to remember is that all four dependency tests have to be met for your parents to claim you - if you fail even one test, they can't claim you as a dependent. From what you've described, it sounds like you're failing the support test since you're paying for your own tuition, rent, and living expenses. The fact that you're under 24 and a full-time student only matters if your parents are ALSO providing more than half your support. One thing to be extra careful about: make sure you're counting everything when you calculate support. This includes the fair market value of housing (even dorm rooms), all food costs, medical expenses, transportation, etc. If you lived with your parents for those few months during shutdown, you'd need to factor in the value of that housing too. Since you mentioned loans and scholarships - student loans in YOUR name count as support YOU provided to yourself, while scholarships are generally considered third-party support and don't count toward either side's percentage. Keep detailed records of all your expenses from this year in case there are any questions later. Sounds like you're on the right track to file independently!
BE CAREFUL with using Venmo for tax refunds! I've seen numerous issues: ⢠Venmo sometimes flags large government deposits as suspicious ⢠Their customer service is nearly impossible to reach if there's a problem ⢠Some users have had accounts temporarily frozen after receiving tax refunds ⢠Venmo is not a bank and doesn't offer the same protections ⢠If there's an issue with your deposit, resolving it takes much longer than with traditional banks Last year, my refund was held for "review" for 9 days before being released. The IRS confirmed they sent it, but Venmo's fraud department had flagged it. I couldn't reach anyone helpful at Venmo during that time. Never again!
I received my refund through Venmo yesterday (3/14) even though my DDD was 3/15! It posted at 2:18pm EST and showed up as "US TREASURY 310 TAX REF" just like others have mentioned. I was worried about potential delays after reading horror stories, but it actually came a day early. For anyone still waiting, I'd suggest checking your account transcript on the IRS website - if you see the TC846 code with your DDD, the money is definitely on its way. Venmo seems to process these deposits in the afternoon, so don't panic if you don't see it first thing in the morning like with traditional banks. Hang in there!
Maya Jackson
Something to consider if you're filing in multiple states: TaxSlayer has been pretty good for me as someone who moved mid-year and had to file a split-year return. Their premium package is around $60 and includes investments and multiple state returns, which was a huge savings over what TurboTax wanted ($120+) for the same situation. Their interface for handling state returns is actually really clean and intuitive. You just select which states you need to file in, and it guides you through the process for each one separately. Way less confusing than when I tried to do a multi-state return in TurboTax a few years ago.
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Tristan Carpenter
ā¢Did TaxSlayer handle partial-year residency well? I'm moving to another state next month for a new job and dreading next year's taxes. Last time I moved between states I used H&R Block in person because I was too intimidated to try it myself.
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Maya Jackson
ā¢TaxSlayer handled the partial-year residency surprisingly well. It walks you through each state separately and asks specific questions about when you moved, your income earned in each state, and taxes already withheld. It then correctly apportioned my income between the two states based on my residency dates. The system also caught that I had paid too much tax to my previous state through withholding and calculated the refund correctly. For the new state, it properly applied their part-year resident rules. The whole process was much less intimidating than I expected, and I'd definitely recommend it over paying the high fees at H&R Block in-person.
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Zoe Papadakis
I've been using TaxAct for the past two years after ditching TurboTax for similar reasons, and it's been solid! What really sold me was their upfront pricing - no hidden fees or surprise upgrades needed for investment income reporting. I paid around $50 total for federal and state with all my investment forms included. The interface is definitely more straightforward than TurboTax's increasingly cluttered design. TaxAct asks direct questions about your tax situation without the manipulative "lifestyle questions" that are really just upsell triggers. When you say you have investment income, it simply adds the necessary forms - no games. One tip: if you do switch to any new software, I'd recommend keeping your last TurboTax return handy for reference. Most alternative software can import some data, but having your previous return helps ensure you don't miss any recurring deductions or credits you've been claiming. The transition was much smoother than I anticipated, and I haven't looked back since!
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