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For what it's worth, I've been using FreeTaxUSA for the past 3 years after getting fed up with TurboTax's rising prices and constant upselling. The federal filing is free regardless of complexity, and state returns are like $15. The interface isn't as polished as TurboTax, but it asks all the same questions and finds the same deductions in my experience. I'd recommend filling out your return there too as a comparison - it won't cost anything to prepare the federal return, only to file. But like others said, the software isn't usually the issue - it's likely something with your withholding or a missed deduction. Different software won't magically make you owe less unless there's a specific deduction or credit that TurboTax is missing (which is rare).
Thank you for this suggestion! We'll definitely try FreeTaxUSA as a comparison. When we put our info into TurboTax, we only got to the W-2 part before seeing the amount we owe. We haven't added any deductions yet, but I'm worried TurboTax will make us pay for upgrades to add things like student loan interest. Do you know if FreeTaxUSA lets you enter student loan interest and charitable donations without upgrading to a paid version?
FreeTaxUSA includes ALL federal tax forms and deductions in their free version, including student loan interest, charitable donations, investment income, self-employment, etc. The only thing you pay for is state filing ($15) or audit assistance if you want it. That's actually one of the biggest differences - TurboTax's "free" version is only free for very simple returns, then they charge for adding forms like student loan interest deductions. FreeTaxUSA doesn't do that bait-and-switch thing. I usually run my taxes through both just to double-check my results, and they've always matched within a few dollars.
Something to consider - did you receive any unemployment benefits? Those are taxable and if you didn't elect to have taxes withheld, that could explain the surprise bill. Also, check if you got any advanced Child Tax Credit payments if you have kids. That can make a big difference in what you owe vs. what you expected.
11 Landlord of 5 properties here. Honest advice? While technically you're supposed to issue 1099s to service providers, many small landlords don't bother for sporadic help like occasional cleaning or small repairs. Focus on accurately reporting your income and expenses on Schedule E - that's what the IRS cares most about. If you're claiming the expenses, you should be ready to document who you paid if ever questioned, but the 1099 issue is rarely a problem for small landlords.
17 Isn't this advising someone to break the tax law? Seems risky to tell someone to ignore filing requirements just because "many people don't bother.
14 Quick tip if you're using TurboTax - if you say "Yes" to question A and "No" to question B, it will flag this as an issue but still let you file. The software will likely generate a warning about potential penalties, but go ahead and continue. In my experience filing several rental returns, I've never had an issue with the IRS following up on this specific discrepancy for small landlords. Just make sure all your income and expenses are accurately reported.
Random question - but did you receive any kind of Form 1099-S for the transaction? That form should indicate the date of closing which the IRS will use to determine the year of sale. Whoever handled your closing (title company, attorney, etc.) should have prepared this form.
Just to throw another option out there - have you considered a qualified opportunity zone investment? If you're facing a big capital gains hit, you could potentially defer those gains by investing in a QOZ within 180 days of your sale. Might be worth looking into if you're facing a significant tax increase.
I've heard about Opportunity Zones but don't know much about them. How exactly would that help in my situation? Would it just defer the gains or actually reduce them? And are there specific types of investments I'd need to make?
Investing in a Qualified Opportunity Zone would defer your capital gains until 2026 (or whenever you sell the QOZ investment if earlier). If you hold the QOZ investment for at least 10 years, any appreciation on the new investment becomes completely tax-free. You would need to invest through a Qualified Opportunity Fund that puts money into businesses or properties in designated opportunity zones. It doesn't eliminate your original capital gains tax, but it pushes it off several years and gives you tax-free growth on the new investment. This could help solve your immediate tax bracket problem by moving those gains to a future tax year.
Just a quick tip that helped me with Sprintax: double check if you accidentally entered your visa status information incorrectly. In my case, I had entered my change from F-1 to OPT with the wrong dates, and it completely messed up my substantial presence calculation. I found that if you go back to the visa information section and compare your entries with your actual I-20s and other documentation, you might spot the issue. Once I fixed my visa dates, Sprintax calculated everything correctly.
That's super helpful! I'll definitely review all my visa entries again. I did have a status change from F-1 to OPT last year, so maybe that's where the calculation is getting messed up. Did you have to delete and re-enter everything or was there a way to edit just the incorrect dates?
You don't need to delete everything! On the visa information page, there should be edit buttons next to each entry. I just clicked the edit button for the incorrect entry, fixed the dates, and saved it. Then I went back to the substantial presence test section and it recalculated automatically. I also found that being very specific about the exact day of status change was important. For example, if your OPT started on May 15th, make sure you enter that specific date rather than just the month.
Has anyone successfully gotten a refund from Sprintax when they mess up calculations like this? I paid $75 for them to prepare my return last year and found out later they calculated my substantial presence completely wrong. I ended up having to file an amended return which cost me even more money.
I managed to get a partial refund last year after proving they made a significant error. You need to take screenshots of the error, explain clearly what's wrong (with IRS references if possible), and be really persistent with their customer service. I had to escalate to a supervisor, but eventually got about 50% of my fee back.
Tasia Synder
Have you tried FreeTaxUSA? They charge nothing for federal filing including 1099-NEC and Schedule C. The only thing they charge for is state filing (around $15). I've used them for years with my freelance income and never had a surprise upgrade fee.
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Sydney Torres
ā¢I haven't tried FreeTaxUSA yet! Does it have a good interface? My biggest frustration with some of the smaller tax services is that the UI feels like it was designed in 1997 lol.
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Tasia Synder
ā¢The interface isn't as fancy as TurboTax or H&R Block, but it's definitely not from the 90s! It's clean and straightforward, just without all the animations and excessive hand-holding. Everything is organized logically and I actually find it faster to use than the big name services. They're especially good with 1099-NEC and other self-employment forms since you don't get routed into "upgrade now!" pages halfway through. Their help content is also surprisingly detailed if you get stuck on something.
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Selena Bautista
The "free" tax filing services are never actually free if you have anything beyond basic W-2 income. I got hit with the same thing when filing my doordash gig work. Started with free filing and ended up paying $89!!! š¤¬
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Mohamed Anderson
ā¢I found a workaround last year! If you go through the IRS Free File portal instead of directly to the tax service website, some of them are required to give you the free version even with 1099-NEC forms. There's an income limit though.
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