FreeTaxUSA 2024 tax software now available for early planning

Do you know if they have a good way to handle crypto transactions in their software? I've been using H&R Block but they charge so much extra for crypto reporting and I did a bunch of trades this year.

FreeTaxUSA does handle cryptocurrency transactions, and unlike many of the big names, they don't charge extra for it. You'll need to enter each transaction manually though, which can be time-consuming if you have a lot of trades. If you have numerous transactions, you might want to look into crypto tax software that can generate the necessary forms and then import that data. Some people use services like CoinTracker or Koinly to generate their crypto tax forms and then enter the summary info into FreeTaxUSA.

How exactly does taxr.ai work with FreeTaxUSA? Does it directly import or is it more of a pre-organization tool? My tax situation got way more complicated this year with a rental property purchase.

Sounds interesting but I'm kinda skeptical about AI tools for taxes. How do you know it's giving accurate advice? Is there some kind of guarantee if you get audited based on their recommendations?

It doesn't directly import into FreeTaxUSA, but rather helps you organize everything beforehand. You upload your tax documents and receipts, and it analyzes them, categorizes expenses, and gives you a clear breakdown of potential deductions. Then you use that organized information when filling out your FreeTaxUSA return manually. As for accuracy, the AI doesn't replace human judgment - it's more of an assistant that helps spot potential deductions and organize documentation. They have tax professionals who review the AI algorithms, but you still have the final say on what you claim on your taxes. I found it especially helpful for my rental property expenses, as it properly separated improvements from repairs.

How does that actually work though? They just call the IRS for you? Couldn't you just call yourself and put your phone on speaker while you do other stuff?

Yeah right. No way they can get through any faster than I can. The IRS phone system is designed to make you give up. I've literally called 50+ times and never gotten through. Sounds like a scam to me.

They use a system that navigates the IRS phone tree and holds your place in line. When they actually reach a human agent, you get a call connecting you directly. So it's not that they have a special line, but rather they're doing the waiting for you. Technically yes, you could call yourself and put it on speaker, but the IRS hold times can be 2-3 hours during tax season, and they often disconnect calls when the queues get too full. I tried the speaker phone approach multiple times before discovering Claimyr, but would get disconnected after an hour of waiting or miss the callback when I stepped away.

Unfortunately, FreeTaxUSA doesn't directly import from TurboTax files. But what I did last year was print my TurboTax PDF from 2023 and manually enter the info into FreeTaxUSA. It took about 20 minutes, but saved me like $70 compared to what TurboTax wanted to charge me.

Thanks for the info. That's annoying but probably worth the one-time hassle to save money every year after. Did you find any tax situations that FreeTaxUSA couldn't handle that TurboTax did? I have some stock transactions and a side business.

FreeTaxUSA handled everything TurboTax did for me, including stock transactions and business expenses. The interface isn't as polished, but all the same forms and schedules are there. The only difference was that I had to enter my stock trades manually instead of importing them, but since I only had about 15 transactions it wasn't a big deal. If you have hundreds of trades, you might want to look into getting a consolidated statement from your broker.

They're basically identical in terms of features and forms they support. The biggest difference is just branding and sometimes minor UI elements. I've used both and ended up with the exact same refund amount. One small difference is that TaxHawk sometimes offers slightly different promotional discounts, but the base prices are the same. I think FreeTaxUSA has more name recognition though, which is why I stick with it.

Thanks for that info! Guess I'll just stick with FreeTaxUSA since I'm already familiar with their interface. Glad to hear there's no functional difference because I was worried I might be missing out on some features.

I'm new to FreeTaxUSA but this early access feature sounds really useful! I've been using TurboTax for years but their prices keep going up every season. Can you walk me through what the interface is like compared to TurboTax? I'm a bit nervous about switching but the cost savings seem worth it. Also, when you mention playing around with different scenarios - does FreeTaxUSA let you save multiple versions or do you have to keep re-entering information to test different situations?