Does the free version still try to upsell you every five minutes like TurboTax does? I started using their "free" version last year and ended up paying $89 because of some "required upgrade" halfway through.

The IRS Free File options are genuinely free if you meet the income requirements. They're different from going directly to TurboTax or H&R Block's websites, where they often use the word "free" but then upsell you. You need to start through the IRS Free File portal (search "IRS Free File") rather than going directly to the tax software sites. This ensures you get the truly free version that's part of their agreement with the IRS. I've completed my 1040 filing three years in a row without paying a penny using this method.

The EITC income limit for single filers with no qualifying children is way lower than $32k though - I think it's around $17k. So they probably wouldn't qualify unless they have kids?

I got through last Thursday but only after calling literally 12 times. Each time it hung up on me but on the 13th try I got in the queue. Then waited 1 hour 47 minutes to speak to someone. The trick seems to be to keep calling back repeatedly and eventually you'll get lucky and get in the queue instead of getting the "we're too busy" message.

Thanks for the tip! I'll try the persistence approach tomorrow morning. 12 attempts sounds painful but I guess it's worth it if it eventually works. Did you select any specific options in the phone menu that seemed to help get you through?

That's interesting - I did start my taxes in TurboTax but then switched to FreeTaxUSA because it was cheaper. I didn't complete or submit anything in TurboTax though, just started inputting some basic info. Could TurboTax have somehow submitted something without me finalizing it??

It's unlikely TurboTax would submit without you finalizing, but not impossible if there was a glitch. Check your TurboTax account to see if there's any record of a submission. Also, if you used the same email for both tax services, check your email carefully for any confirmation messages that might indicate something was filed. Another possibility: if you had a tax preparer do your taxes last year, sometimes they automatically file extensions for all their clients as a courtesy. Maybe someone filed an extension for you without informing you? Worth checking if that could have happened.

Oh geez, I didn't even think about that. I've been reporting my US income but didn't include the interest from my Australian accounts (which is pretty minimal, maybe $200/year). I haven't touched my Super since moving here - do I really need to report that too?? This is getting more complicated than I thought.

Yes, technically all worldwide income needs to be reported on your US tax returns, even small amounts of interest. However, small amounts are unlikely to trigger major issues. Australian Superannuation funds are a complicated area for US tax purposes. Some tax professionals argue they should be treated as foreign pensions (which have specific reporting), while others consider them PFICs (Passive Foreign Investment Companies) which require Form 8621 filing. Some even argue they could be considered foreign trusts requiring Forms 3520/3520-A. This might be one area where professional advice is warranted, as the reporting requirements are complex and the penalties for incorrect PFIC or trust reporting are significant. You might want to look into streamlined filing procedures which cover both delinquent FBARs and amended tax returns in one process.

It's the combined total of all your foreign financial accounts at any point during the year. So if the maximum balances of all your accounts together exceeded $10,000 at any point, even for a day, you need to file an FBAR for that year. For example, if you had three accounts with $4,000 each ($12,000 total), you would need to file even though no single account exceeds $10,000.

This is terrible advice. My cousin did exactly this for years with his landscaping side gig and got absolutely hammered with back taxes, penalties and interest when they finally caught him. Ended up owing more than triple what he would have if he'd just reported it properly.

That's actually a terrible idea. Intentionally underreporting some income while reporting other income demonstrates knowledge and intent, which can bump you from the "negligence" penalty category (20%) to the "fraud" category (75%). It shows you knew you should report the income but deliberately chose not to report all of it. If you're going to report some, you should report all of it. Partial compliance often looks worse than simple "forgetting" because it proves you knew the rules but chose to break them anyway.

Thanks for bringing this up! I did check with my parents and they're not claiming me anymore since I've been fully supporting myself since graduation. But that's definitely something I wouldn't have thought about before reading your comment. How do you know whether someone can claim you as a dependent? Is there like an age cutoff or income limit?

There's actually a few tests the IRS uses. For a "qualifying child" dependent, you need to be under 19 (or under 24 if you're a student) and live with your parents for more than half the year. There's also a support test - if you provided more than half of your own financial support during the year, then your parents can't claim you, regardless of age or living situation. Since you mentioned you've been fully supporting yourself, you're definitely not a dependent anymore. It's definitely something that causes confusion that first year of independence! Glad you already sorted it out with your parents.

This is the best advice here. When I was a new grad, I missed out on the American Opportunity Credit my first year because I didn't realize I could claim it for my final semester. That was literally $1,500 down the drain! Also check if your state has additional credits. In California, I got a renter's credit that most of my friends didn't know about.

Thanks for this! I was in school for the spring semester before graduating in May, so I'll definitely look into the American Opportunity Credit. I had no idea there was a difference between credits and deductions until reading these comments. Do software programs like TurboTax automatically check for these credits, or do I need to specifically know to look for them? I'm worried about missing something important now.