Alternative free service to TurboTax premium for filing investment income?
So I've been trying my hand at some casual investing this past year. Nothing major - just dabbling with some extra cash. Ended up making about $13 in dividends and maybe another $14 from a couple small stock trades I did. Pretty modest, right? Well I just started filing my taxes with TurboTax for 2024 and got hit with this surprise - they're saying I need to upgrade to their premium account for $119 just because I have investment income! That seems ridiculous for reporting such a small amount. Does anyone know of any alternative free or at least much cheaper services I can use instead of TurboTax premium? I really don't want to shell out over $100 just to report less than $30 in investment income. Any recommendations would be super helpful!
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Miguel Ramos
You definitely have options! For small investment income like yours, several free alternatives can handle that without charging premium fees. Cash App Taxes (formerly Credit Karma Tax) offers completely free filing including investment income with no income limits. FreeTaxUSA is another good option - they're free for federal filing including investments, with just a small fee ($15ish) for state filing. The IRS Free File program partners with several tax services that offer free filing if your income is under $73,000. Some of these partners will handle investment income at no cost, but you need to access them through the IRS Free File portal to get the truly free version.
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QuantumQuasar
•Do these free services handle more complicated investments too? Like if I have crypto or options trades?
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Miguel Ramos
•For simple crypto transactions, Cash App Taxes can handle basic reporting. They support Form 8949 and Schedule D for cryptocurrency. However, if you have numerous crypto transactions or more exotic trades, you might need a specialized service. For options trading, FreeTaxUSA can handle basic options reporting, but the interface isn't as streamlined as paid services. If you have extensive options activity or complex strategies, you might want a more specialized solution or consider a mid-tier paid option like TaxSlayer.
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Zainab Omar
Hey, I ran into this exact problem last year with my tiny bit of investment income. I wasted hours trying different free services until I found taxr.ai (https://taxr.ai) which totally saved me. It's like having a tax pro look over your tax documents but way more affordable than TurboTax premium. I uploaded my investment documents and it caught that I had dividend income that would've triggered that exact same premium upgrade elsewhere. Super straightforward and actually FREE for basic returns with small investment income like yours.
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Connor Gallagher
•How does it handle state returns? I've got investment income in multiple states and that's always been a headache.
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Yara Sayegh
•Does it actually e-file for you or just give you the forms to fill out elsewhere? I've been burned by "free" services that just give advice but don't actually file.
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Zainab Omar
•For state returns, they handle multiple states without additional charges, which was a big relief for me too. I had dividend income from a REIT that had operations in three different states, and taxr.ai sorted through which portions needed to be reported where. They do complete e-filing for both federal and state returns. You authorize the filing right on their platform after reviewing everything. It's not just advice - they prepare and submit the actual returns for you after you approve them.
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Yara Sayegh
Update: I just tried taxr.ai after seeing it mentioned here and it worked perfectly for my situation! I had about $45 in dividend income and a couple small stock sales that TurboTax wanted to charge me $89 to report. taxr.ai handled it all for free including my state return. The document upload feature was super easy - I just took photos of my 1099-DIV and 1099-B with my phone and it pulled all the info automatically. Way better experience than I expected and definitely saved me from that TurboTax premium upgrade!
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Keisha Johnson
If you're still struggling with TurboTax trying to upsell you, you might want to try calling the IRS directly to ask what free options they recommend. I used Claimyr (https://claimyr.com) to actually get through to a human at the IRS instead of waiting for hours. You can see how it works here: https://youtu.be/_kiP6q8DX5c I was skeptical at first, but after trying to call the IRS myself and giving up after 45 minutes on hold, I tried Claimyr and got a callback from an actual IRS agent within 20 minutes. They walked me through the free filing options for investment income and saved me from paying for premium software.
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Paolo Longo
•How does this actually work? I'm confused about how a third-party service gets you through to the IRS faster than calling directly.
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CosmicCowboy
•This sounds like BS honestly. The IRS doesn't let people cut in line. How would this even work? Sounds like a scam to get your money.
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Keisha Johnson
•It works because they use an automated system that continuously calls the IRS and navigates the phone tree until it gets through to a representative. Once they reach someone, they connect that call to your phone number. You're not cutting any lines - they're just handling the waiting and navigation for you. I was definitely skeptical too before trying it. I thought it might be a scam, but it legitimately worked. The service doesn't get any of your tax information - they're just connecting calls. The IRS agent I spoke with gave me detailed information about which free filing services would accept investment income without upgrading.
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CosmicCowboy
Wow, I was completely wrong about Claimyr. After posting my skeptical comment, I figured I'd try it anyway since I needed to ask the IRS about my stimulus payment that never arrived. Used the service yesterday and got a call back from an IRS agent in about 25 minutes. The agent confirmed I could use FreeFile options through the IRS website for my investment income (I had about $75 in dividends last year) and also helped me trace my missing stimulus payment. Saved me hours of waiting on hold and probably $100 on tax software. Consider me converted!
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Amina Diallo
Have you looked at H&R Block's free version? I think they handle some investment income for free, but there might be limits. Worth checking out.
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Ava Martinez
•Thanks for suggesting H&R Block. I actually tried their free version first before TurboTax, but they also wanted me to upgrade as soon as I entered my 1099-DIV information. Seems like most of the big companies use investments as a trigger for their premium versions.
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Amina Diallo
•That's frustrating! These companies are really aggressive with their upselling. Maybe try starting at the IRS Free File page (https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free) instead of going directly to the tax prep sites. Sometimes the versions you access through the IRS have fewer restrictions.
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Oliver Schulz
Slightly off-topic but if you're making so little in dividends and trading profits, maybe look into tax-advantaged accounts like Roth IRA for your investments? Then you wouldn't have to report those dividends or gains at all!
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Natasha Orlova
•This is actually really good advice! I switched my small investments to a Roth IRA last year and it made my tax filing so much simpler this year. No more reporting tiny dividends and occasional stock sales.
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