Did you notice any difference in the refund amounts between the two? I've heard rumors that TurboTax somehow finds more deductions, but that sounds suspicious to me.

I actually did a test one year and entered the exact same information in both TurboTax and FreeTaxUSA. The refund amount was identical down to the dollar. The tax code is the tax code - as long as you enter the same information correctly, you should get the same result regardless of which software you use. The perception that TurboTax finds more deductions probably comes from their marketing and the way they phrase things during the interview process. They're very good at making it seem like they're discovering special deductions for you, when in reality they're just asking about standard deductions that any tax software should cover. FreeTaxUSA asks about all the same deductions, just with less flashy presentation.

You can actually file state taxes directly through most state websites for free! I use FreeTaxUSA for federal and then just go to my state's department of revenue website to file state taxes. Takes maybe 15 extra minutes but saves the $15.

That's a great tip! I never thought about filing directly with the state. Does it require you to manually enter all the same information again, or can you import data from your federal return?

Quick question - if someone fills out the W-9 but doesn't check any of the business entity boxes and just puts their SSN, how do you know whether to issue a 1099-NEC or 1099-MISC? My lawn care guy gave me his W-9 but I'm confused about which form to use.

If they just put their SSN and don't check any business entity boxes, they're most likely an individual/sole proprietor (the first box on the form), and you would issue them a 1099-NEC for services they provided. The 1099-NEC is specifically for nonemployee compensation - basically paying someone for services when they're not your employee. The 1099-MISC is now used for other types of payments like rent, prizes and awards, medical payments, etc. - but not for services anymore. A few years ago the IRS split these forms, and service payments that used to go on the MISC now go on the NEC form.

This is really important! My friend got misclassified as a contractor when she should have been an employee, and she ended up paying way more in self-employment taxes than she should have. What's the best way to determine if you're truly a contractor or if you should be an employee?

How difficult is it to file an amended return? I've always been scared to do it because I heard it increases your audit risk. Is that true?

Filing an amended return isn't particularly difficult - you file Form 1040X showing the changes from your original return. You'll need to include any forms related to the changes (like Form 8880 for the Saver's Credit). That's actually a common misconception about audits. Filing an amendment doesn't automatically increase your audit risk, especially for something straightforward like adding a credit you qualified for but didn't initially claim. The IRS is mainly concerned with significant changes that reduce your tax liability by large amounts without clear justification.

I used Cash App Taxes this year and can confirm they include the Saver's Credit form for free. Their interface isn't as polished as TurboTax, but it gets the job done and I saved about $120 in fees.

7 How much does AGI affect the amount of taxes taken out of your paycheck each month? I feel like I always owe more at tax time, even when I claim 0 allowances.

3 Your AGI doesn't directly affect the taxes taken out of your paycheck. Your paycheck withholding is based on the W-4 form you fill out and the withholding tables your employer uses. If you consistently owe at tax time, you might need to update your W-4 to have additional withholding taken out. The 2025 W-4 doesn't use allowances anymore - instead, you can specify an additional dollar amount to withhold from each paycheck. Another option is to make quarterly estimated tax payments if you have significant income not subject to withholding.

13 This! And don't forget about state AGI calculations which might be different from federal. I got audited by NY state because their AGI calculation didn't match federal, and I had used the federal number for state tax calculations.

The Taxpayer Advocate Service is practically useless these days. I tried contacting them for help with an identity theft issue and they told me they're so backlogged they're only taking "extreme hardship" cases. Apparently owing the IRS $9,000 I don't actually owe isn't "extreme" enough lol.

That's disappointing but unfortunately not surprising. Their resources have been stretched thin over the past few years. For identity theft cases specifically, the IRS has a specialized unit you can contact directly at 800-908-4490. They handle cases where someone filed a fraudulent return using your information. For the incorrect tax debt situation, you might need to send a formal written dispute with certified mail. It's slower but creates an official record of your dispute that's harder for them to ignore. The key is to explicitly state the economic hardship the incorrect assessment is causing you - using those specific terms can help get your case prioritized.

This isn't a browser issue, it's the IRS being understaffed and overwhelmed. No amount of clearing cache is going to make them respond to a submitted ticket faster 😂