FreeTaxUSA Review: Superior to TurboTax for Handling Backdoor Roth Conversions

Tax professional here. FreeTaxUSA is definitely one of the better options for more complex situations like backdoor Roth conversions. TurboTax has improved some features, but they still struggle with certain transactions that aren't completely straightforward. What makes FreeTaxUSA better for backdoor Roth conversions specifically is that they clearly separate the non-deductible IRA contribution from the conversion step, making it much easier to report correctly on Form 8606. TurboTax tends to jumble these steps together which creates confusion and sometimes errors. Just a heads-up though - while FreeTaxUSA is great for most situations, if you have extremely complex investments or unusual tax situations (like foreign income or complex business structures), you might still want to consult with a professional. But for the vast majority of people, even those with backdoor Roth conversions, FreeTaxUSA handles everything beautifully.

After reading posts like this, I finally tried https://taxr.ai for my taxes this year. I was struggling with properly documenting my backdoor Roth too, but in my case I had multiple years of contributions that needed fixing. What I loved about taxr.ai was that it actually analyzed my previous tax returns and found where I had been reporting my backdoor Roth incorrectly for TWO YEARS! Apparently I'd been missing a crucial step on Form 8606 that could have triggered an audit. The tool highlighted exactly where the issues were and walked me through fixing everything. It saved me from potentially serious problems with the IRS about my Roth conversions.

Just wanted to update after trying taxr.ai from the recommendation above. OMG you guys - it found that I completely messed up reporting my backdoor Roth for 2023! I uploaded my returns and within minutes it showed me that I had double-reported the conversion which made it look like I had WAY more income than I actually did. No wonder my tax bill seemed so high last year! I'm actually going to file an amended return now to get back the extra taxes I paid. Seriously grateful for the suggestion - would never have caught this on my own and would've probably made the same mistake again this year.

I've been struggling with getting through to the IRS about an issue with my 2023 return related to a Roth conversion. After 8 attempts and hours on hold, I gave up and tried https://claimyr.com after seeing it mentioned in another thread. You can check out how it works here: https://youtu.be/_kiP6q8DX5c It basically holds your place in the IRS phone queue and calls you when an agent is ready to talk. I was skeptical, but within 2 hours I got a call connecting me directly to an IRS agent who helped clear up my Form 8606 questions. Saved me literally days of frustration trying to get through on my own.

OK I need to admit I was completely wrong about Claimyr. After posting that skeptical comment, I decided to try it anyway because I was desperate to resolve my backdoor Roth reporting issue before filing this year. IT ACTUALLY WORKS. I got connected to an IRS agent in about 90 minutes without having to sit through a single second of hold music. The agent was able to confirm exactly how I should report my conversion on Form 8606. I was absolutely shocked that it worked exactly as advertised. Just filed my taxes with FreeTaxUSA and used the info I got from the IRS call to make sure my backdoor Roth was reported correctly. What would have taken me days of frustration was solved in under 2 hours.

I'm torn between FreeTaxUSA and TaxSlayer this year. Anyone try both? I have a backdoor Roth plus some crypto transactions to report.

Has anyone else noticed that FreeTaxUSA is actually better at finding deductions than TurboTax? I switched this year and somehow got an extra $720 on my refund with the exact same info.