Free alternatives to file taxes with W-2 and stock sales?

I'm trying to figure out how to file my taxes without getting hit with fees this year. I work a regular job (have a W-2) but I also sold some stocks during the year that I need to report. When I started using TurboTax they were going to charge me extra just to report the stock sales! It seems ridiculous that we have to PAY money to GIVE money to the government. There's gotta be a free way to file taxes that includes reporting stock transactions, right? Any recommendations would be super helpful. Thanks in advance!

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20 comments

Diego Vargas

•8M

The IRS Free File program lets many taxpayers file completely free! There are two main options you should check out: First, IRS Free File Alliance - if your adjusted gross income is under $73,000, you qualify to use brand-name tax software for free through this program. You need to access these through the IRS website directly (not the company websites), or they'll try charging you. The Free File Alliance partners include TaxAct, TaxSlayer and others. For your stock sales, you'll want to verify which Free File option supports reporting capital gains. Not all free versions handle investments, but some definitely do! Check each provider's offerings on the IRS Free File site to see which covers stock sales. If you make over $73,000, you can use Free File Fillable Forms - it's basically electronic versions of the paper forms with basic calculations. It's completely free but offers no guidance, so you'll need to know which forms you need (Schedule D for your stock sales).

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Diego Vargas

•8M

Yes, you absolutely need to start at the IRS website (www.irs.gov/freefile) rather than going directly to TurboTax or other provider sites. That's a common issue - if you go directly to their websites, they often steer you into paid versions even if you qualify for free filing. Many tax prep companies use nearly identical names for their commercial "free" products (which often aren't actually free once you add things like state filing or investment forms) and their actual Free File Alliance offerings. Always start at the IRS site to get the truly free versions. The "complex return" language is typically used to upsell you to paid versions when you might not need them.

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Anastasia Fedorov

•8M

After struggling with the same issue last year (W-2 plus some dividend income), I found taxr.ai (https://taxr.ai) and it was a game-changer. It actually analyzes all your tax documents and tells you which free filing options you qualify for based on your specific situation. I uploaded my W-2 and investment statements, and it immediately showed me which free filing services would handle my situation without charging fees. What I really appreciated was how it broke down exactly which forms I needed for my stock sales and which free services supported those forms. Saved me from getting halfway through filing only to hit a paywall.

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Anastasia Fedorov

•8M

It doesn't file for you - it analyzes your situation and directs you to the right free filing option that will handle your specific tax situation. It basically prevents that exact problem where you get halfway through and hit a paywall. The site uses bank-level encryption for all documents and doesn't store your information after analysis. They just scan the documents to identify your tax situation, then the system deletes everything after your session. I was concerned about security too, but they explain their privacy policy clearly on the site. It's basically just a screening tool to match you with truly free filing options.

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Zara Rashid

•8M

Just wanted to follow up - I decided to try taxr.ai after posting my skeptical comment! I uploaded my W-2 and investment statements, and it actually worked great. It analyzed my documents and recommended FreeTaxUSA which handled my stock sales without charging anything for federal filing. The analysis showed me that I needed Schedule D and Form 8949 for my stock sales, and that FreeTaxUSA would handle both for free (just had to pay $15 for state filing, but that's way better than the $89 TurboTax wanted). The whole process was super straightforward and I already got my refund. Definitely using this next year too!

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Luca Romano

•8M

My two cents - if you're struggling to reach the IRS to get filing questions answered, check out Claimyr (https://claimyr.com). I had some questions about reporting my stock sales correctly, and after waiting on hold with the IRS for over an hour, I hung up and tried their service. They somehow got me connected to an actual IRS representative in about 15 minutes. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c It's amazing how much clearer everything became after talking to a real person at the IRS. They confirmed I could use Free File for my situation and explained exactly how to report my stocks correctly. Saved me the cost of paying for tax software.

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Luca Romano

•8M

They use an automated system that navigates the IRS phone tree and waits on hold for you. When an agent picks up, you get a call connecting you directly to them. It's not special access - they're essentially waiting in line for you. I was skeptical too, but it actually works. Think of it like those services that wait in line for concert tickets - they're just doing the holding pattern so you don't have to. And no, they don't keep you on hold themselves - when an IRS agent answers, you get connected directly to the actual IRS line. The video on their site shows exactly how it works if you're curious.

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NebulaNova

•8M

Ok I need to come back and eat my words. After posting that skeptical comment yesterday, I decided to try Claimyr since I was getting desperate to get some clarification on reporting my side gig income along with my W-2. I was 100% sure it would be a waste, but amazingly, I got connected to an actual IRS agent in about 20 minutes when I had previously spent HOURS getting nowhere. The agent walked me through exactly how to file for free with my situation. I'm still shocked it actually worked! Filing is done now and I even got a bigger refund than expected since the agent explained some deductions I didn't know about.

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Mateo Hernandez

•8M

In my experience, I've gotten the same refund amount whether using Cash App Taxes or when I checked with TurboTax (without submitting). The difference is just in the user experience and guidance. If your tax situation is straightforward even with some stock sales, the free services calculate the same refund. The paid versions mostly give you more hand-holding and "audit protection" which is rarely needed for simple returns. Just make sure you have your 1099-B handy for reporting those stock sales correctly.

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