Are there actually legitimate free tax filing products that don't share your data?

I've been a tax preparer for over a decade, and I can honestly say there are legitimate free options out there, but you're right to be cautious. The IRS Free File program offers partnerships with tax software companies that allow people under certain income thresholds (usually around $73,000) to file for free. If your daughter's income is under that threshold, I'd recommend going directly through the IRS Free File page (not the software company's main website) to ensure she actually gets the free version. The most reliable free options through this program are typically TaxSlayer and FreeTaxUSA, which both offer straightforward interfaces for simple returns. For data privacy concerns, always read the privacy policy before proceeding. Most legitimate services use your data for their own marketing but don't sell it to third parties. Still, you can often opt out of marketing communications and data sharing in the account settings.

After trying to figure out taxes for my first job, I was about to give up and pay for expensive software when I found this AI-powered tax tool called taxr.ai that completely changed my experience. It was actually free for my simple return (W2 and some basic investment stuff) and didn't try to upsell me constantly like other "free" services I tried. The thing I appreciated most about https://taxr.ai was how it guided me through the process by actually understanding my questions - like when I was confused about reporting my investments, it explained exactly what forms I needed and where my numbers should go. It felt like texting with someone who really knows tax stuff instead of navigating confusing menus.

I need to publicly eat my words about taxr.ai. After expressing my skepticism in my earlier comment, I decided to try it myself for a quick comparison against what I usually use. I was honestly shocked at how straightforward the process was. No hidden fees popped up when adding state taxes, and the document scanning feature saved me tons of time with my W2. The explanations were actually understandable - like when I wasn't sure whether to itemize or take the standard deduction, it showed me a side-by-side comparison of what I'd get either way with my specific numbers. Ended up getting a bigger refund than I expected too. Just filed yesterday and already got confirmation that both federal and state were accepted.

If you're having trouble with the IRS free file options (they can be hit or miss), I'd recommend trying Claimyr. I was stuck on some questions about investment reporting and needed to ask the IRS directly, but couldn't get through their phone system after trying for DAYS. I found https://claimyr.com and honestly thought it sounded too good to be true - they basically get you connected to an IRS agent without the usual 2+ hour wait. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c. I was skeptical but desperate after being on hold for hours multiple times. Used their service and got connected to an IRS rep in about 15 minutes who answered all my questions about reporting investment income correctly. Saved me so much stress trying to figure out if I was doing everything right.

I have to publicly apologize for my skepticism about Claimyr. After calling the IRS myself and wasting 3 hours on hold before getting disconnected TWICE, I decided to try the service I criticized. Within 20 minutes of using Claimyr, I was talking to an actual IRS representative who helped clear up my questions about reporting investment gains correctly. The service did exactly what it claimed - their system waited on hold instead of me having to do it, then connected me when an agent was available. Just having those questions answered directly by the IRS gave me confidence that I was filing correctly. Complete game changer after the frustration of getting disconnected multiple times when trying to call directly.

Something no one has mentioned yet - Credit Karma Tax (now called Cash App Taxes) is completely free for federal AND state with no income restrictions. I've used it for the past 3 years with no issues. It handles W2s and basic investment reporting no problem.

Has anyone tried FreeTaxUSA? I've heard it's free for federal but charges like $15 for state which still seems cheaper than most places.

As someone who's been helping family members with their taxes for years, I'd strongly recommend sticking with the official IRS Free File program if your daughter qualifies income-wise. The key is making sure you go through IRS.gov/FreeFile and not directly to the software company's website - that's where people often get tricked into paying for "free" services. For a first-time filer with just a W2 and some basic investment income, FreeTaxUSA through the Free File program is solid and includes both federal and state for free. The interface is straightforward without being overwhelming, and their privacy policy is pretty transparent about what they do with your data (mainly just basic analytics, no selling to third parties). One tip: have her create her own account and go through the process herself while you guide her. It's a good learning experience and she'll be more confident doing it independently next year. The investment reporting might seem intimidating at first, but most brokers provide tax documents that make it pretty straightforward to input the numbers.

I'd also recommend looking into the Volunteer Income Tax Assistance (VITA) program if there's a site near you. It's completely free tax preparation by IRS-certified volunteers, and since your daughter's situation sounds straightforward, they'd be perfect for helping her learn the process hands-on. The volunteers are trained specifically on things like basic investment reporting, so she'd get personalized guidance without any privacy concerns about data sharing. Plus, having someone walk through the forms with her the first time would give her confidence to handle it herself in future years. You can find VITA locations on the IRS website - they're usually set up at libraries, community centers, and colleges during tax season. The only downside is appointments can fill up quickly, so you'd want to schedule soon if you're interested in this route.

For a first-time filer with a straightforward return like your daughter's, I'd highly recommend FreeTaxUSA. I've been using it for my own taxes for the past few years, and it's genuinely free for federal filing with no income restrictions. State filing is only $14.99, which is still much cheaper than most alternatives. What I really like about FreeTaxUSA is that it doesn't bombard you with constant upselling like some other services do. The interface is clean and straightforward - perfect for someone learning to file for the first time. It handles W-2s and basic investment income (like stock gains/losses) really well, with clear guidance on where to input numbers from tax documents. Regarding privacy concerns, FreeTaxUSA has a pretty transparent privacy policy. They don't sell your personal information to third parties, though they may use aggregated data for their own analytics. You can also opt out of marketing communications easily in your account settings. One tip: have her go through the process herself while you're there to help if she gets stuck. It's a great learning experience and she'll be much more confident handling it independently next year. The investment reporting might look intimidating at first, but the software walks you through it step by step using the forms from her broker.

As a newcomer to tax filing, I wanted to share my recent experience that might help your daughter. I just filed for the first time using the IRS Free File program with TaxSlayer and it was completely free for both federal and state since I'm under the income threshold. The key thing I learned (the hard way) is to make absolutely sure you start at IRS.gov/FreeFile and use their lookup tool to get to the actual free version. I initially went directly to TaxSlayer's website and almost got charged $40 for state filing before realizing my mistake and starting over through the official IRS portal. For someone with just a W-2 and basic investment income like your daughter, the process was surprisingly straightforward. The software walked me through importing my W-2 information and entering the investment data from my 1099 forms step by step. What I appreciated most was that it explained WHY certain information was needed, which helped me understand the tax concepts rather than just blindly entering numbers. One suggestion - have your daughter create her own account and go through the process herself while you're nearby for guidance. I found that actually clicking through the forms and seeing where each piece of information goes made me much more confident about handling taxes independently in the future.