Comparing TurboTax vs. FreeTaxUSA: Which tax software is actually worth the money?

Do both have the same level of accuracy? I've been using H&R Block for years but the price keeps going up and I'm thinking of switching. My biggest concern is getting something wrong and being audited.

Both TurboTax and FreeTaxUSA use the same IRS tax regulations and math to calculate your taxes, so the accuracy should be identical if you input the same information. The difference is mainly in user experience and extra features. FreeTaxUSA does offer audit assistance in their Deluxe version (which is still much cheaper than TurboTax's comparable options), but it's not as comprehensive as TurboTax's audit defense. That said, if your tax situation is straightforward, your audit risk is generally pretty low regardless of which software you use.

How does the analysis part work? Does it actually look at your old tax returns or just ask questions about your situation?

I'm skeptical about tools like this. How do you know they're not just pushing whichever tax service pays them the most for referrals? What makes you trust their recommendations?

It actually reviews your previous tax returns after you upload them. The system identified specific forms I was using and compared them with what each tax software supports. It was surprisingly detailed - even pointed out that I was paying for TurboTax's self-employment features when my side gig income was small enough to be reported more simply. I understand the skepticism completely. What convinced me was that they showed their reasoning for each recommendation with specific details from my return. They actually recommended against some premium options that would have earned them bigger commissions, which gave me confidence they were being honest. They explain what features you actually used in past returns versus what you're paying for.

Wait, how does this actually work? The IRS phone system is notoriously terrible. How does this service get you through faster than calling directly?

This sounds like BS honestly. There's no way some third-party service can magically get the IRS to call you back when millions of people can't get through. They probably just take your money and you still end up waiting forever.

It essentially navigates the IRS phone tree for you and secures your place in line. When they reach a human agent, they transfer the call to your phone. It's not magic - they're just using technology to handle the hold time for you. I had exactly the same reaction at first. I was desperate enough to try it after spending 3+ hours on hold one day and getting disconnected. I figured it was worth a shot since I needed answers before the filing deadline. I was shocked when my phone rang and it was actually an IRS agent. The time saved was absolutely worth it, especially during peak filing season when wait times can be 2+ hours.

I switched from TurboTax to FreeTaxUSA last year with 2 rental properties. FreeTaxUSA handled Schedule E perfectly fine. The interface isn't as fancy but all the same sections are there. Saved me like $70 and my final numbers were identical.

Thanks for sharing your experience! That's really helpful to know. Did you find the depreciation calculations were handled correctly too? That's the part that always makes me nervous about switching.

The depreciation calculations worked great. FreeTaxUSA pulled forward all my previous depreciation info correctly when I imported last year's return. It asks all the same questions TurboTax does about basis, improvements, etc. I double-checked all the numbers against my previous returns just to be safe. They matched perfectly. The main difference is just less hand-holding in the interface, but all the same tax logic is there.

FreeTaxUSA's Deluxe version (usually about $7-8) includes what they call "Audit Assist" - they provide guidance if you're audited, but don't represent you. TurboTax sells a more comprehensive audit defense service that includes representation. That said, if your return is relatively straightforward, audit risk is pretty low. I've prepared hundreds of returns over the years with various software and never had one audited. If you're really concerned, you could use the money you save with FreeTaxUSA to purchase third-party audit protection separately.

Thanks for explaining the difference! My taxes aren't complicated so it sounds like FreeTaxUSA would probably be fine. Maybe I'll put the savings toward paying for representation only if I actually get audited instead of paying for protection I likely won't need.

This is really helpful to hear! I'm in a similar situation - W-2, mortgage, standard deductions - and have been wondering if I'm just wasting money on TurboTax's fancy interface. The fact that you actually ran the numbers through both platforms and got identical results is exactly the kind of confirmation I was looking for. Did you find the import process from your previous TurboTax returns pretty straightforward when you switched?