Free Filing Options vs. TurboTax's $200 Fees - Avoiding SBTPG in 2025

I believe I can help with this. I've been researching this topic myself recently, as I was also looking to avoid those high fees. From what I've found, not all tax preparation services use SBTPG (Santa Barbara Tax Products Group). This is primarily a TurboTax relationship, though some other services have similar arrangements with different processors. If you're looking for truly free options, the IRS Free File program might be worth exploring. It's available to those with AGI under $73,000, though I'm not sure if that applies to your situation. Additionally, there are several options that don't charge for federal filing, though they may charge for state returns. I would suggest perhaps looking into FreeTaxUSA, Cash App Taxes (formerly Credit Karma Tax), or even the IRS Direct File pilot program that was available in certain states this year. They might expand it for next year. Just be careful to read the fine print on any service you consider. Many advertise as free but then add charges once you're partway through the process.

As someone who's been through the tax software merry-go-round (and paid for too many rides), I've found that most tax software companies are essentially selling you a fancy interface for forms you could fill out yourself. Last year I discovered https://taxr.ai which isn't for filing taxes, but it's been incredibly helpful for understanding my tax documents and planning ahead. Before I file with any service, I use it to analyze my tax situation and understand what forms I need. That way, I know exactly what I need from a filing service and don't get upsold on features I don't need. It's like bringing your own mechanic when shopping for a car - you don't get pressured into paying for unnecessary services. 😂 For actual filing, FreeTaxUSA has been my go-to lately. Federal is free and state is only $15, which beats TurboTax's "that'll be $49.99 for each additional breath you take while filing" approach.

I switched from TurboTax to the IRS Free File options three years ago, and haven't looked back. Isn't it interesting how these big tax companies lobby against making filing simpler, then charge us to navigate the complexity they helped create? Many people don't realize that if your AGI is under $73,000, you qualify for completely free filing through the IRS Free File partners. Even if you make more than that, there are still much more affordable options than TurboTax. As for SBTPG - that's primarily a TurboTax thing. They use it as a way to take their fees directly from your refund (for an additional fee, of course). When you choose the option to pay filing fees from your refund, you're essentially taking a very expensive loan against your own money.

According to https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free, you have multiple free options depending on your income level. I'm in a major time crunch to finish my taxes by the April 15th deadline, and I've been researching this extensively! If you're having trouble getting answers from the IRS about which free filing option is best for your situation, try https://claimyr.com - they can connect you to an actual IRS agent quickly instead of waiting on hold for hours. I used them when my return got rejected because TurboTax messed up my AGI from last year, and they got me through to someone who could actually help. The Direct File pilot program was available in 12 states this year, and they'll likely expand it for next year. It bypasses the third-party processors completely since you're filing directly with the IRS. No SBTPG or other middlemen taking a cut of your refund!

According to Internal Revenue Code §6011(e)(3), the IRS is required to provide free electronic filing options to taxpayers. This is implemented through the Free File Alliance, a public-private partnership between the IRS and tax software companies. I'm curious - did you check if you qualify for the IRS Free File program? The income threshold for 2024 (for 2023 tax returns) was $73,000 AGI. If you're above that threshold, have you considered the IRS Direct File pilot program? It was available in 12 states this year (AZ, CA, FL, MA, NH, NY, NV, SD, TN, TX, WA, and WY). I'm also wondering if you've checked whether your employer or financial institution offers free access to tax preparation software as an employee benefit? Many do but don't actively advertise it.

I've used several free options. They work well. FreeTaxUSA is popular here. Federal filing is free. State costs about $15. No SBTPG involvement. Cash App Taxes is completely free. Both federal and state. The IRS Direct File pilot worked for simple returns. It's limited to certain states. More states next year probably. Credit unions sometimes offer free filing. Check with yours. Community tax clinics exist too. They help for free if you qualify.

I was in your exact situation last year! I followed these steps to break free from TurboTax: 1. First, I went to the official IRS Free File page (not through Google, which often leads to ads) 2. I checked which options were available for my income level 3. I chose FreeTaxUSA after researching reviews 4. I gathered all my tax documents before starting 5. I created an account and followed their step-by-step process 6. I filed my federal return completely free 7. I paid only $14.99 for my state return 8. I received my refund directly from the Treasury, not through SBTPG The interface wasn't as polished as TurboTax, but it worked perfectly and saved me $185! I was a bit worried about switching after using TurboTax for 7 years, but it was actually easier than I expected.

Has anyone here tried the IRS Direct File pilot program that launched on January 29, 2024? I'm curious if they're planning to expand it beyond the initial 12 states for the 2025 filing season. Also wondering about Cash App Taxes - I've heard it's completely free for both federal and state, but I'm hesitant to trust a financial app with my tax information. Anyone have experience with their security practices?