Free Tax Filing Options for 2025: Legitimate Alternatives to TurboTax, HR Block and Jackson Hewitt

Do the free versions handle self-employment income? I have a small side business and usually pay extra for the "self-employed" version of TurboTax. Also wondering if they can handle crypto transactions or if that requires the paid versions?

Many of the Free File options do handle self-employment income and can help you complete Schedule C. Each provider has different features, so you'll want to compare what's available when they open in January. Some may have limitations on more complex self-employment situations. Regarding cryptocurrency, most Free File providers have added basic crypto support in recent years. If you have simple crypto transactions, you should be fine. However, if you have hundreds of transactions or complex DeFi situations, you might need more specialized software.

Does it work for rental property income too? I have two properties and usually pay for the "landlord edition" of H&R Block which is crazy expensive. Will this help me find the right deductions?

I'm skeptical about giving my tax docs to some AI service. How secure is it? And does it actually file for you or just tell you what to do? Seems like it could be another way to get charged at the end.

Yes, it definitely handles rental properties! It recognizes Schedule E forms and helps identify all the applicable deductions for landlords. I have a friend who used it for his three rental properties and said it found several depreciation items he'd been missing. Regarding security, they use bank-level encryption and don't store your documents permanently. It doesn't file directly for you - it analyzes your documents and gives you detailed guidance that you can use with any filing method (including the free options mentioned in this thread). There's no surprise charges at the end.

Wait how does this actually work? Does it just call the IRS for you? Couldn't you just do that yourself? I'm confused about what service they're providing.

Sounds like a scam to me. Why would I pay someone to call the IRS when I can just call them myself? Plus, how do they magically get through when nobody else can? Bet they're just recording your call or collecting personal info.

It doesn't just call for you - it uses a system that navigates the IRS phone tree and holds your place in line. When you call the IRS directly, you often wait hours or get disconnected. Their system keeps your place and calls you when an agent is about to be connected. I was skeptical too before trying it. They don't record your call or collect personal info - they just connect you directly to the IRS agent when one becomes available. They're basically solving the "getting through" problem which is the hardest part of reaching the IRS. The actual conversation is just between you and the IRS agent.

Is there any difference in features between the free file versions and the paid ones? I'm worried the free ones might be missing important forms or checks that could save me money.

For basic to moderate tax situations, the free versions have all the essential forms and features you need. The paid versions often add extras like audit support, tax advice hotlines, or more hand-holding for complex situations. The main forms and calculations are identical though - the IRS math is the same regardless of which version you use. Sometimes the paid versions just make certain things more convenient or provide extra peace of mind. But for most people, the free file versions work perfectly fine.

The IRS Free File program typically opens in mid-January. For 2025 (filing 2024 taxes), they've announced it should be available starting January 15th. However, even if you file early, the IRS won't begin processing returns until late January or early February.