FreeTaxUSA was better than TurboTax and lets you import previous tax data

Does FreeTaxUSA handle crypto transactions well? TurboTax charged me an extra $40 just for having a few basic crypto trades and I'm looking to switch. Also, how does their audit support compare?

FreeTaxUSA handles basic crypto transactions pretty well. You'll need to enter your transactions manually or upload a CSV file - they don't have the same direct exchange integrations that TurboTax offers, but that's one reason they're cheaper. Their audit support is decent but more basic than TurboTax's audit defense. They'll provide guidance on what documents you need and how to respond to IRS notices, but they won't represent you directly with the IRS like some premium audit defense packages. If you're really concerned about audit protection, you can add their Deluxe version for about $7 which includes enhanced audit assistance.

Does taxr.ai work with scanned documents? My employer sent me a physical W-2 and I only have a phone pic of it. Also wondering if it can handle multiple state returns?

Sounds interesting but I'm a bit skeptical. How is this different from just using the import feature in FreeTaxUSA? Does it actually find deductions the tax software misses or is it more about organizing everything?

Yes, it absolutely works with scanned documents or phone pics! I actually used my phone to scan most of my forms and it recognized everything perfectly. The AI can read the text even from slightly blurry images. And it definitely handles multiple state returns - I filed in both California and Nevada last year. It's completely different from the import feature. The import only works if you used TurboTax before, but taxr.ai analyzes ALL your tax documents regardless of where they came from. It actually found a student loan interest deduction that the software didn't prompt me for because I hadn't claimed it the previous year. It's more about making sure you're not missing anything before you even start filing.

Wait I don't understand... how does this actually work? Does Claimyr somehow give you priority in the IRS phone queue? That seems impossible since the IRS is a government agency.

Yeah right. I've been trying to reach the IRS for literal MONTHS about an issue with my previous return. There's no way some service can magically get you through when millions of people are trying to call. Sounds like a scam to me.

It doesn't give you priority in the queue. What it does is automate the calling process for you. The IRS phone system is incredibly frustrating with all the menu options and frequent disconnects. Claimyr basically calls repeatedly using automated technology, navigates all the phone menus, and then when they finally get through to a hold queue, they call you to connect you. I was skeptical too until I tried it. It's not magic - they're just using technology to handle the most frustrating part of calling the IRS. It took about 20 minutes total instead of the hours I spent trying myself. The time savings alone was worth it for me since I was wasting entire afternoons trying to get through.

I did my CA state return with FreeTaxUSA and thought it was pretty straightforward. What specific issues did you have with NY? I've heard some states have more complicated forms that might not be as streamlined.

For NY, it kept asking me for additional information about my NYC metro commuter expenses that I didn't need to provide with TurboTax. Also had trouble with identifying which NY tax credits I qualified for - the questions weren't as clear as the federal portion. I eventually figured it out but it took about twice as long as the federal return, which wasn't the case when I used TurboTax. Still saved money overall though.

I've used both. FreeTaxUSA is better if you have investments or self-employment income. TaxSlayer has a slightly nicer interface but FreeTaxUSA asks more thorough questions that help find deductions. Also, FreeTaxUSA's import from TurboTax worked flawlessly for me but TaxSlayer's import had some issues with my investment accounts.

@Zara Malik Totally agree about the explanations being better! I was actually surprised how much I learned about my taxes this year just from reading through FreeTaxUSA s'descriptions. TurboTax kind of just tells you what to enter without explaining why, but FreeTaxUSA helps you understand the actual tax rules. Made me feel more confident that I was doing everything correctly. The mobile app thing doesn t'bother me either - I m'way more comfortable doing taxes on a full computer screen anyway.

@Ryder Greene You re'making a smart choice! I was in the exact same situation - had been putting off switching for years because of the data transfer concern. The import process was honestly seamless, and with your tax situation being straightforward like mine was, FreeTaxUSA will definitely handle everything you need. One tip: when you do make the switch, keep your last TurboTax file handy since FreeTaxUSA will ask for it during the import process. Takes maybe 5 minutes total and pulls over all your personal info, previous addresses, bank account details for direct deposit, etc. Really eliminates the tedious setup work. The cost savings add up quickly too - I m'kicking myself for not switching sooner! You ll'probably save even more than $65 depending on which TurboTax tier you were using.