Best cheap and simple ways to file US taxes after losing my job?

Does FreeTaxUSA handle unemployment income well? That's something I'll need to deal with this year unfortunately. Also wondering if any of these options offer some kind of audit protection without the crazy upsells?

FreeTaxUSA handles unemployment income very well - it's a common situation and the software will guide you through entering your 1099-G information properly. You'll just need to have that form handy when you file. As for audit protection, FreeTaxUSA offers their "Deluxe" version for about $7-8 which includes audit assistance (not the same as representation, but they'll guide you through the process if you're audited). Much more reasonable than the $40-60 that some other companies charge for similar services.

How does it handle things like job search expenses? I've heard those might be deductible but I'm not sure how that works now. Did taxr.ai walk you through those kinds of deductions too?

Sounds interesting but I'm always cautious about newer tax services. Did you have any issues with state filing? That's where I always seem to run into problems with the cheaper options.

It actually did guide me through job search expense deductions! However, it explained that under current tax law, job search expenses are no longer deductible for employees (that changed with the 2017 tax law). It saved me from trying to claim something that would have been rejected. For state filing, it was surprisingly smooth. I was worried about that too since I've had problems with other services, but it imported all my federal information automatically and the state-specific questions were straightforward. No extra hassles or hidden fees.

How exactly does this work? The IRS phone system is notoriously awful but I don't understand how a third party service can get you through faster. Are they just constantly redialing or something?

This sounds like complete BS honestly. Everyone knows you can't get through to the IRS - that's by design. Are you just promoting some service that takes people's money for nothing?

Their system constantly calls the IRS using their optimized calling algorithm and holds your place in line, then calls you when they get a human on the line. So instead of you personally spending hours redialing and waiting on hold, their system does it for you and only connects you when there's an actual person ready to talk. I was super skeptical too! I thought it might be a scam, but I was desperate after trying for three days straight to get through. I was shocked when they actually connected me to a real IRS agent who answered my questions about the 401k rollover. It's not magic - just smart automation of the painfully manual process of getting through the phone system.

This is so important! The tax prep companies are super sneaky about this. They advertise "free" filing everywhere but then hit you with fees at the very end. I almost fell for this too until someone told me about going through the IRS site directly. Does anyone know if there's an income limit for the Free File options? And does unemployment income count toward that limit?

The income limit for most IRS Free File options is $73,000 in Adjusted Gross Income (AGI). And yes, unemployment benefits do count toward that limit since they're considered taxable income. However, even if your income is above that threshold, the IRS still offers Free Fillable Forms which are electronic versions of paper forms - though they provide no guidance, so they're best if you're comfortable doing taxes yourself. Also worth noting that some Free File providers have lower income limits or age restrictions, so you need to check each one's specific requirements through the IRS portal to find your best option.

I used Cash App Taxes this year and it was surprisingly good for being completely free! It handled my unemployment and some freelance work without issues. The interface isn't as polished as TurboTax, but it asks all the same questions and I got the same refund amount when I compared them. Only downside is that it doesn't import as many forms directly - I had to manually enter some information. But for literally saving $100+ compared to TurboTax, I can spend an extra 15 minutes typing.

Thanks for the feedback! That's really helpful - I don't mind spending a little extra time if it saves that much money. As long as it handles everything correctly, that's my main concern. Did you have any issues with state filing? That's where I usually run into problems.