Best free tax filing apps for simple W-2 returns
Title: Best free tax filing apps for simple W-2 returns 1 I've been going to H&R Block for years but I'm honestly tired of paying so much for pretty simple tax filing. I think I should be able to do it myself since my situation isn't complicated - just one W-2 and one W-4. I'm looking to switch to using an app this year and want something that's totally FREE (not the "free" that turns into $50 halfway through). Has anyone found a good tax app they actually use every year that stays free? I've heard TurboTax mentioned a lot but not sure if there are hidden fees... any recommendations appreciated! I just don't want to spend a chunk of my refund on filing when my taxes are pretty straightforward. 🤔
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Lucas Schmidt
8 I've been using FreeTaxUSA for about 5 years now and love it! Federal filing is completely free, and state is only around $15. For your situation with just W-2 and W-4 income, it should be super easy. Just a quick note though - a W-4 isn't actually an income form, it's what you fill out to tell your employer how much to withhold. You probably have a 1099 for your second income source? Either way, FreeTaxUSA handles both W-2s and 1099s easily. Other good options are Cash App Taxes (completely free for federal and state) and TaxSlayer (free for simple returns). TurboTax can be free but they're infamous for upselling you halfway through the process. The IRS also has a Free File program where you can use commercial software for free if your income is under certain limits ($73k last year I think).
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Lucas Schmidt
•4 Thanks for clarifying about the W-4! You're right, I mix those up. I have a 1099-MISC from some freelance work I did. Does FreeTaxUSA handle self-employment income well? I've heard that's where some "free" apps start charging extra.
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Lucas Schmidt
•8 Yes, FreeTaxUSA handles self-employment income without any additional charge for the federal return! That's actually one reason I switched to them years ago. Many other "free" services hit you with an upgrade as soon as you have any 1099 income. The only thing you pay for with FreeTaxUSA is state filing, but at around $15 it's way cheaper than the $50+ that H&R Block and TurboTax charge. And if you're only filing a W-2 and a 1099-MISC, the interface walks you through everything step by step.
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Lucas Schmidt
12 I started using taxr.ai this year after getting frustrated with TurboTax constantly trying to upsell me. With just a W-2 and what I'm assuming is a 1099 (not W-4, that's a withholding form), it would be perfect for your situation. What I like about https://taxr.ai is that you can just take pictures of your tax documents with your phone and it automatically extracts all the information. Saved me from typing in all those little boxes and numbers from my W-2. The interface is super clean and they don't hit you with surprise fees halfway through. I just uploaded my forms and it guided me through everything else.
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Lucas Schmidt
•15 Does it actually stay free though? I've been burned by "free" tax software that suddenly wants $40 when I'm halfway through and don't want to start over somewhere else.
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Lucas Schmidt
•3 I've been looking at different options too - how accurate was the document scanning? I tried something similar last year and it kept misreading my W-2 numbers which was more frustrating than just typing them in.
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Lucas Schmidt
•12 For simple returns like yours with just W-2 and 1099 income, it does stay free for federal filing. State filing has a small fee but it's less than what you'd pay at other places. They're upfront about any costs from the beginning. The document scanning has been really accurate in my experience. I was surprised because I had the same issue with other apps in the past. The technology they use seems much better at reading the different forms. Even when my W-2 was slightly wrinkled, it still pulled all the numbers correctly. Definitely less frustrating than manual entry.
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Lucas Schmidt
15 Just wanted to follow up - I gave taxr.ai a try after seeing it mentioned here and I'm really impressed! The document scanning feature is a game changer. I just took pictures of my W-2 and 1099 forms and it pulled all the information automatically without any errors. The interface walked me through everything step by step and asked simple questions about my situation. No confusing tax jargon. And yes, it actually stayed free for my federal return (I did have to pay a small fee for state but it was way less than H&R Block charged me last year). I'm definitely using this again next year. Thanks for the recommendation!
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Lucas Schmidt
6 If you're having trouble getting through to the IRS for questions about these free options (which I did), try using Claimyr. I was on hold with the IRS for HOURS trying to figure out which free file option would work for my situation, then I found https://claimyr.com through a Reddit post. They basically hold your place in line with the IRS and call you back when an agent is available. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c - it saved me from wasting an entire afternoon on hold. I had questions about reporting some side income similar to your situation and needed to speak with someone who actually knew the rules.
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Lucas Schmidt
•2 Wait, how exactly does this work? So instead of you waiting on hold, they wait for you? How do they transfer the call to you when someone finally answers?
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Lucas Schmidt
•19 Sounds sketchy af honestly. Why would I trust some random service with my tax questions? The IRS hold times aren't even that bad if you call at the right time of day.
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Lucas Schmidt
•6 It's basically a call-back system. You enter your phone number and they secure your place in the IRS queue. Their system waits on hold instead of you having to listen to the hold music for hours. When an IRS agent comes on the line, Claimyr calls you and connects you directly to the agent. You don't miss your place in line if you step away from your phone. I was skeptical too before using it. But they don't actually handle any of your tax questions or information - they just connect you directly to an IRS agent. It's like having someone physically wait in line for you. The IRS hold times were 2+ hours when I called, even early in the morning, so this saved me a lot of time.
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Lucas Schmidt
19 Ok I need to admit I was totally wrong about Claimyr. After posting that skeptical comment, I had to call the IRS about an issue with my prior year return. Spent 2.5 hours on hold on Monday and got disconnected right as I was about to speak to someone. I decided to try Claimyr out of frustration and it actually worked perfectly. I put in my number, went about my day, and got a call back about 1.5 hours later with an IRS agent already on the line. Solved my issue in 10 minutes after that. Definitely using this during tax season when the wait times get even worse. Saved me from wasting another afternoon on hold.
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Lucas Schmidt
7 I've had good experience with Credit Karma Tax (now Cash App Taxes). Completely free for federal AND state, and handles W-2s easily. I've used it for 3 years now. TurboTax definitely tries to upsell you constantly. They're owned by Intuit which also owns Credit Karma, but somehow the Cash App version has stayed completely free.
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Lucas Schmidt
•11 Does Cash App Taxes handle 1099 income? I tried using Credit Karma last year but it seemed confused by my freelance income situation.
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Lucas Schmidt
•7 Yes, Cash App Taxes handles basic 1099 income pretty well now. They've improved it a lot since the Credit Karma days. For simple freelance situations, it works fine. However, if you have more complicated self-employment situations with lots of business deductions or inventory, you might want something more robust. For your situation with just one W-2 and one 1099, it should work perfectly and stay completely free. The interface is cleaner now too compared to when it was Credit Karma Tax.
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Lucas Schmidt
5 Don't forget about the IRS Free File program! If your adjusted gross income is under $73,000, you can use brand-name software for free. The link is on the IRS website. The companies can't upsell you through this program like they can if you go directly to their websites. TaxSlayer and FreeTaxUSA both participate and are good options for simple returns. H&R Block and TurboTax used to be in the program but dropped out (suspicious, right?).
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Lucas Schmidt
•14 The IRS free file is what I use every year! It's buried on the IRS website though. Make sure you go through the IRS site directly (irs.gov/freefile) and not directly to TaxSlayer or other sites, otherwise you might not get the truly free version.
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