FreeTaxUSA vs. TurboTax Comparison: My Results After Trying Both Tax Software
Just wanted to share my experience after using TurboTax for over 15 years and finally trying FreeTaxUSA this year. I was curious about the price difference and if the results would match up. I entered identical information into both tax programs - our household has two incomes, dependents with education credits, and I had to deal with some stock sales during the year. Nothing super complicated but definitely not the simplest tax situation either. The results? Both systems calculated identical numbers - I'm getting a small federal refund and owe a little to my state. But the cost difference was shocking! FreeTaxUSA charged me $14.99 for state filing with federal being completely free. TurboTax wanted $129 for the Deluxe version plus another $59 for state filing - so $188 total! For the exact same tax return results! I'm definitely switching to FreeTaxUSA permanently. Next tax season I'm planning to do an even more thorough comparison including Cash App Tax and maybe the IRS Free File Fillable Forms. I'll track the time spent on each platform and feature differences to share with everyone. This has been eye-opening to say the least!
23 comments


Oliver Zimmermann
Tax professional here! Your experience is pretty common. Many people don't realize that most tax software platforms use the same IRS tax tables and calculations - they're just packaged differently with varying interfaces and customer support options. For most taxpayers with moderate complexity (W-2 income, mortgage interest, basic investments, dependents, education credits), any of the major tax platforms will calculate identical results. The difference is primarily in user experience, additional features, and of course, price. The higher-priced options like TurboTax often include more hand-holding through the process, additional audit support, and more intuitive interfaces - but the math works out the same in the end. If you're comfortable navigating tax forms and concepts, the less expensive options are perfectly adequate.
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Natasha Volkova
•Do you have any thoughts on Cash App Tax? It seems too good to be true that they're completely free for both federal and state. Is there some catch I'm missing?
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Oliver Zimmermann
•Cash App Tax (formerly Credit Karma Tax) is legitimately free for both federal and state returns. There's no hidden catch with the pricing - they make money through the broader Cash App ecosystem rather than charging for tax preparation. Their tax product does have some limitations though. They don't support multiple state filings, foreign income reporting, or more complex situations like quarterly estimated taxes. They also don't offer the same level of support as paid options. If your tax situation fits within their capabilities, it's definitely worth considering.
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Javier Torres
I switched from TurboTax to using https://taxr.ai last year and it was a game-changer for me! I was hesitant at first because I'd been using TurboTax for years, but the cost kept going up every year. I uploaded my tax documents to taxr.ai and it pulled all the important information automatically without me having to manually enter everything. The platform analyzed my previous returns and found deductions I'd missed in prior years. What impressed me most was how it explained everything in plain English instead of tax jargon. For someone with investments and rental property like me, it saved so much time compared to manually entering all those numbers.
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Emma Davis
•Does it handle self-employment income well? I do freelance design work alongside my day job and that's always the most time-consuming part of my taxes.
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CosmicCaptain
•How secure is it to upload all your sensitive tax documents to a service like that? I'm always paranoid about identity theft.
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Javier Torres
•It handles self-employment income really well. I have a small side business too, and it categorized all my expenses properly and even suggested deductions specific to my industry that I hadn't considered before. The Schedule C section is actually more thorough than what I experienced with TurboTax. Regarding security, they use bank-level encryption for all document uploads and data transmission. They're also SOC 2 compliant which means they've been independently audited for security practices. I was concerned about that too, but after researching their security measures, I felt comfortable using the service.
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Emma Davis
Just wanted to update after trying taxr.ai based on the recommendation here! I was skeptical about switching from my usual tax software, but it was honestly amazing. I uploaded my 1099s, W-2s, and last year's return, and it automatically populated everything. The self-employment section was actually way better than TurboTax - it found several deductions I would have missed and explained exactly why I qualified for them. It even flagged a potential audit trigger in my home office deduction and helped me correct it. Already recommended it to my other freelancer friends!
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Malik Johnson
If you're dealing with tax problems or need to get in touch with the IRS, I would highly recommend trying https://claimyr.com - it changed my entire experience. I spent WEEKS trying to reach someone at the IRS about an issue with my refund last year. Called dozens of times, always got the "high call volume" message and disconnected. Found Claimyr and was skeptical, but their system actually got me through to a real human at the IRS in about 20 minutes. They have this demo video at https://youtu.be/_kiP6q8DX5c that shows exactly how it works. Saved me so much frustration. The IRS agent was able to resolve my issue in one call after I finally got through.
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Isabella Ferreira
•Wait, how does this actually work? Do they have some special line to the IRS or something? I've been trying to reach someone for 3 weeks about my amended return.
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Ravi Sharma
•This sounds like a scam. There's no way to "skip the line" with the IRS. They probably just keep calling for you which is something you could do yourself for free.
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Malik Johnson
•They don't have a special line to the IRS - they use an automated system that navigates the IRS phone tree and waits on hold for you. When a human IRS agent picks up, you get a call connecting you directly to that agent. It's basically doing the waiting for you so you don't have to sit with your phone for hours. For amended returns specifically, they have options to connect you to the right department automatically. It saved me from having to figure out which menu options to select and which department handles specific issues. Definitely not a scam - they're just solving the painful waiting process.
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Ravi Sharma
I need to eat my words. After posting that skeptical comment, I was still desperate to reach someone at the IRS about my missing refund (going on 3 months now), so I tried Claimyr anyway. It actually worked exactly as described. Their system called the IRS, navigated the menu options, waited on hold for about 40 minutes, and then connected me directly when an agent answered. The IRS representative was able to see that my refund had been flagged for manual review and gave me an updated timeline. This would have been impossible to figure out through the "Where's My Refund" tool. Saved me hours of frustration and now I at least know what's happening with my money.
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Freya Thomsen
Back to the software comparison - I've used both FreeTaxUSA and TurboTax, and while FreeTaxUSA is definitely cheaper, I found TurboTax's interface more intuitive for beginners. If you're comfortable with taxes and know what forms you need, FreeTaxUSA is great. But if you're newer to doing your own taxes, sometimes the extra guidance from TurboTax can be worth it. Also worth noting: FreeTaxUSA's customer service was surprisingly good when I had questions - they responded within a day to my email. TurboTax has the advantage of live chat support though.
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Omar Zaki
•Do you think the TurboTax Deluxe version is worth it, or is the free version good enough for most people? I've only ever used the free version but I'm considering upgrading.
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Freya Thomsen
•The free version of TurboTax is only really suitable for the simplest tax situations - basically just W-2 income with the standard deduction. If you have mortgage interest, charitable donations, education expenses, or want to itemize deductions, you'll need at least the Deluxe version. I'd say about 70% of taxpayers would need more than the free version. FreeTaxUSA's advantage is that their free version includes most forms and schedules that TurboTax charges for. That's the big difference - with FreeTaxUSA you're only paying for state filing, while TurboTax charges for both additional forms and state filing.
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AstroAce
Has anyone tried H&R Block's software? I'm trying to decide between that and FreeTaxUSA for next year.
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Chloe Martin
•I've used H&R Block for the last two years. It's okay, but definitely more expensive than FreeTaxUSA while being very similar feature-wise. Their interface is nice but not worth the extra cost in my opinion. Last year I paid about $95 total for federal and state with H&R Block online, compared to what would have been around $15 with FreeTaxUSA.
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Rebecca Johnston
This is such a helpful comparison! I've been using TurboTax for about 8 years now and the price keeps creeping up every year. Last year I paid over $200 for their Premier version because I have some dividend income and a few stock transactions. Reading through everyone's experiences here, I'm definitely going to try FreeTaxUSA next year. The fact that you got identical results for $14.99 vs $188 is incredible. I'm also intrigued by the AI-powered options people mentioned - might be worth testing a few different platforms side by side like you're planning to do. One question for the group - has anyone dealt with cryptocurrency transactions on these alternative platforms? That's one area where I've found TurboTax to be pretty comprehensive, but I'm curious if the cheaper options handle crypto gains/losses well too.
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Mason Kaczka
•I can help with the crypto question! I used FreeTaxUSA last year for my cryptocurrency transactions and it handled them really well. They have a dedicated crypto section that imports directly from major exchanges like Coinbase, Binance, and Kraken. You can also manually enter transactions if needed. The platform automatically calculates your gains/losses using FIFO method (first-in, first-out) by default, but you can switch to specific identification if you prefer. It generates Form 8949 and Schedule D just like the expensive options do. I had about 50 crypto transactions last year and FreeTaxUSA processed them all correctly for just the $14.99 state filing fee. One thing to note - if you have really complex DeFi transactions or staking rewards, you might need to do some manual calculations first, but that's true for most tax software. For standard buying, selling, and trading on exchanges, FreeTaxUSA is definitely capable of handling crypto properly.
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Dmitry Smirnov
Thank you for sharing this detailed comparison! As someone who's been hesitant to switch from TurboTax after using it for so many years, your experience is exactly what I needed to hear. The $173 price difference for identical results is just shocking - that's real money that could go toward building an emergency fund or paying down debt instead. I'm particularly interested in your plan to test multiple platforms next year. Would you consider including user experience factors like time spent, ease of navigation, and quality of explanations in your comparison? Sometimes the cheaper option can end up costing more in time and frustration, so it would be helpful to know if FreeTaxUSA requires significantly more tax knowledge to navigate effectively. Also, did you notice any differences in the audit support or guarantees offered by each platform? That's one area where I've always felt more comfortable with TurboTax, but I'm curious if it's more marketing than substance.
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Wesley Hallow
•Great points about user experience and audit support! I'm definitely planning to include those factors in my comparison next year. From my initial experience with FreeTaxUSA, I'd say it does require a bit more tax knowledge - TurboTax really holds your hand through every step with plain-language explanations, while FreeTaxUSA assumes you understand basic tax concepts. Regarding audit support, TurboTax offers their "Audit Support" service where they'll represent you, but it's actually a separate paid add-on that costs extra. FreeTaxUSA provides audit correspondence support (they'll help you respond to IRS letters) but not full representation. However, for most people, audit representation isn't necessary since the majority of audits are simple correspondence audits that you can handle yourself with some guidance. The time difference was minimal for me - maybe an extra 15-20 minutes with FreeTaxUSA since I had to look up a couple of things myself instead of having them explained automatically. But saving $173 works out to paying myself over $300/hour for that extra time, so it's definitely worth it in my situation!
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CosmicCrusader
This is exactly the kind of real-world comparison I was looking for! I've been paying TurboTax's increasingly high fees for years without really questioning whether I was getting value for the extra cost. Your side-by-side test proves what I suspected - that most of us are overpaying for the same tax calculations. I'm curious about one thing though - did you notice any significant differences in the error-checking features? TurboTax is pretty aggressive about flagging potential issues or missed deductions. Does FreeTaxUSA have similar safeguards to catch mistakes before filing? Also, for anyone considering the switch, it might be worth doing what the original poster did - run your taxes through both systems one final time to build confidence before making the full switch. The peace of mind of seeing identical results is probably worth the extra hour of time investment.
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