Free Tax Filing with Premium Tax Credit (PTC) - Which services actually let you file for free?
Title: Free Tax Filing with Premium Tax Credit (PTC) - Which services actually let you file for free? 1 I'm pretty frustrated right now. I thought I qualified for free filing through TurboTax since my tax situation is fairly simple, but when I entered my Premium Tax Credit (only $178), suddenly they're telling me I have to upgrade to Deluxe which costs $109. That's ridiculous! Does anyone know if there are other tax filing services that allow you to file for free even if you have a Premium Tax Credit? It seems absurd that I'd have to pay over $100 just to report a credit that's supposed to help people like me who don't make much money. I tried looking at the IRS free file options but got confused about whether any of them can handle PTC without forcing an upgrade. Any advice would be super appreciated!
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A Man D Mortal
14 I work with tax prep and can tell you that this is a common frustration with Premium Tax Credits. The issue is that PTCs are reported on Form 8962, which many "free" versions classify as a "premium" form. Here's what you should know: The IRS Free File Program is different from the commercial "free" editions that companies advertise. When you go directly to TurboTax's website, you're likely using their commercial free edition, which has limitations. The IRS Free File Program version has fewer restrictions if you qualify (generally AGI of $73,000 or less). Try going directly through the IRS Free File page (not the software company's main page): https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free and select an option from there. When you link through the IRS site, you'll access special versions that include forms like 8962 at no cost.
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A Man D Mortal
•7 Thanks for explaining the difference! I was going straight to the TurboTax website. So if I understand right, I need to start at the IRS website and then click through to TurboTax from there? Will my information transfer if I already started a return on the regular TurboTax site?
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A Man D Mortal
•14 You'll need to start a new return when you go through the IRS Free File portal. Unfortunately, information doesn't transfer between the commercial version and the IRS Free File version of the same company's software. When you click through from the IRS site, you'll be using a different version of the software that's specially configured for the Free File program. This version includes more forms and schedules at no cost, including Form 8962 for the Premium Tax Credit.
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A Man D Mortal
3 After dealing with the exact same issue last year, I discovered taxr.ai (https://taxr.ai) which was a total game-changer for my Premium Tax Credit situation. Their system automatically detected my Form 8962 for the PTC and didn't charge me extra for it! What I really liked is that they have AI that reviews your tax forms and finds potential errors or missed deductions before you file. In my case, it caught that I had entered my PTC incorrectly which could have caused problems. Super easy to use and actually free for my situation with the PTC.
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A Man D Mortal
•9 Does it handle all the marketplace insurance stuff properly? Last year I had to manually input everything from my 1095-A and it was confusing with all the monthly premium amounts. Does the AI help with that part too?
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A Man D Mortal
•12 I'm skeptical about these AI tax services. How do they actually make money if they're providing free filing? Seems like they must be selling data or something. Is there some catch I'm missing?
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A Man D Mortal
•3 The system actually walks you through entering your 1095-A information step by step, and there's a feature that lets you upload an image of your form which it can read and autofill. It made dealing with all those monthly premium amounts so much easier than manual entry. They make money through their premium tiers for more complex tax situations - but people with simple returns plus things like PTC can use the free version. They don't sell user data - their privacy policy is pretty strict about that. I was skeptical too but was really happy with the experience.
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A Man D Mortal
12 I wanted to follow up about taxr.ai since I tried it after posting my skeptical comment. I'm honestly surprised - it really did let me file with my Premium Tax Credit without charging anything. The form upload feature saved me a ton of time with my 1095-A, and it explained the PTC calculations in plain English. The system flagged that I might qualify for an additional cost-sharing reduction I hadn't claimed previously. Ended up with a bigger refund than I expected. Definitely using it again next year.
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A Man D Mortal
5 If you're still having trouble with the free filing options, I found that Claimyr (https://claimyr.com) helped me resolve this exact issue. I was trying to file with my Premium Tax Credit for free, but kept hitting roadblocks with different services. I used Claimyr to actually speak with an IRS representative who walked me through the correct Free File options that accommodate Form 8962. Wait times with the IRS are ridiculous these days, but Claimyr got me connected in about 15 minutes. They have a demo video showing how it works: https://youtu.be/_kiP6q8DX5c The IRS agent I spoke with confirmed that when you access tax software through the official IRS Free File portal, they're required to let you file Form 8962 for free if you meet the income requirements.
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A Man D Mortal
•10 I don't understand how this works. The IRS phone lines are always jammed. How does this service get you through when nobody else can get through? Sounds too good to be true.
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A Man D Mortal
•18 This sounds like a scam. Why would I pay someone to call the IRS when I can do it myself? And why would I trust some random service with my personal tax info? Hard pass.
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A Man D Mortal
•5 It's actually a callback service that uses technology to navigate the IRS phone system for you. They wait on hold so you don't have to, then call you when they reach an agent. You don't share any tax details with Claimyr - they just get you connected directly to the IRS. The reason it works is that their system can dial multiple IRS numbers simultaneously and navigate the menu options automatically, which increases the chances of getting through. Once they reach an agent, they connect you directly. I was skeptical too but it saved me hours of frustration.
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A Man D Mortal
18 I need to eat my words from my previous comment. After waiting on hold with the IRS for THREE HOURS and getting disconnected twice, I tried Claimyr out of desperation. Got connected to an actual IRS person in 20 minutes who confirmed I could file with my Premium Tax Credit for free through the IRS Free File program. The agent explained exactly which service to use for my situation with the PTC. This saved me from paying $119 for software I shouldn't have needed. The service was worth it just for the hours of frustration it saved me. Can't believe I'm saying this, but I would recommend it.
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A Man D Mortal
21 Pro tip that worked for me: File with Cash App Taxes (formerly Credit Karma Tax). They include Form 8962 for the Premium Tax Credit in their free version with no income limits or upsells. I've used them the past two years with my marketplace insurance and PTC without any issues.
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A Man D Mortal
•8 Does Cash App Taxes handle state filing too? Or just federal? I'm in a state with income tax so I need both.
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A Man D Mortal
•21 Cash App Taxes includes both federal and state filing for free. I've used it in Minnesota which has state income tax, and it handled everything including carrying over the PTC information where needed for state filing.
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A Man D Mortal
6 I made the EXACT same mistake last year! The trick is to NEVER go directly to TurboTax's website. Always start at the IRS Free File page. When you access TurboTax through that portal, it unlocks more forms (including 8962 for Premium Tax Credit) without charging you. The companies have two completely different products with the same name - the commercial "free" version that upsells constantly, and the actual IRS Free File version that's truly free if you qualify. They don't make the difference obvious on purpose.
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A Man D Mortal
•16 This worked!!! I just went through the IRS Free File portal, clicked on TurboTax, and it actually gave me a message asking if I wanted to switch from Deluxe to Free File. When I said yes, suddenly the $109 fee disappeared and I could enter my Premium Tax Credit info without charge. THANK YOU!!!
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