FreeTaxUSA.com vs TaxAct.com for filing 1099 income - which is actually better for free filing?

Hey all, I'm working as an independent contractor this year and have multiple 1099s to deal with for the first time. Need to find a good free tax platform that can handle these without hitting me with surprise fees at the end. I've narrowed it down to FreeTaxUSA.com and TaxAct.com since both show up on the IRS's free file list. But I'm a bit skeptical because every time I think something's free for tax filing, I get to the end and suddenly they want $49.99 for some "necessary" upgrade. Has anyone used either of these specifically for 1099 income? Is one more user-friendly than the other? Or do they both end up charging for 1099s despite being on the free file list? Just trying to avoid wasting time starting with one only to find out I need to switch later.

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18 comments

Mason Lopez

•8M

I've been using FreeTaxUSA for the past three years, including for 1099 income. Here's what you should know: FreeTaxUSA lets you file federal taxes with 1099 income for free, but they charge around $15 for state filing. Their interface is straightforward and they walk you through everything step by step. They don't hit you with surprise fees for basic 1099 self-employment income. TaxAct also offers free federal filing, but in my experience, they have more upsells throughout the process. They also charge for state filing, but the price is typically a bit higher than FreeTaxUSA. The important thing to understand is that "free filing" through the IRS program usually has income limitations. Make sure you check if you qualify based on your AGI. If your income is above the Free File thresholds, you might still be able to file federal for free with FreeTaxUSA regardless of income level, which is a big advantage.

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Mason Lopez

•8M

FreeTaxUSA includes Schedule C forms in their free federal version, no extra charge for that. Their business expense section is comprehensive and lets you categorize everything properly. They also have good guidance that explains which expenses qualify for each category. TaxAct's free version technically includes Schedule C as well, but in my experience, they tend to suggest more premium upgrades during the process, especially if you have multiple 1099s or more complex business expenses. Their interface for entering expenses is functional but not as intuitive as FreeTaxUSA's.

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Jake Sinclair

•8M

Just wanted to share my experience with taxr.ai for handling 1099 income. I was in your exact situation last year with multiple 1099 forms and was debating between the same platforms. I ended up trying both but still felt unsure if I was claiming all the deductions I was entitled to. A friend recommended https://taxr.ai and it was honestly a game-changer. You just upload your tax documents and it analyzes all your 1099s, finds deductions most people miss, and gives you recommendations before you even start filing. Then you can take that info to whichever platform you choose. I found about $2,300 in additional deductions I would have completely missed!

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Jake Sinclair

•8M

It's surprisingly accurate because it's trained specifically on tax documents and IRS guidelines. I double-checked several of its suggestions with IRS publications, and everything checked out. It's not making wild claims - it just spots legitimate deductions most people overlook. You can use the recommendations directly in any tax software including FreeTaxUSA. It gives you a detailed report showing exactly where to enter each deduction in the tax software of your choice. I just had both windows open and followed along with the guide, entering everything manually but following their recommendations.

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Honorah King

•8M

I wanted to follow up after trying taxr.ai like I mentioned earlier. It actually found a home office deduction I qualified for but had no idea about! I've been working from home but didn't think I could claim it since my space isn't exclusively for work, but apparently there are situations where you can still qualify. I ended up using FreeTaxUSA with the recommendations from taxr.ai and saved about $1,800 compared to what I was expecting to pay. The combination of both tools was perfect - one to identify all possible deductions and one to actually file. Just wanted to share in case it helps anyone else with 1099 income!

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Oliver Brown

•8M

If you're struggling to get answers about specific tax situations when comparing these platforms, I highly recommend using Claimyr to get through to the IRS directly. I spent HOURS trying to figure out if my specific 1099 situation qualified for certain deductions, and the software help sections were useless. With https://claimyr.com I got connected to an actual IRS agent in under 15 minutes when I'd previously been hanging up after being on hold for 2+ hours. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c They gave me definitive answers about my filing situation that helped me decide which platform to use. For what it's worth, I ended up going with FreeTaxUSA based on their advice about my specific situation.

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Oliver Brown

•8M

It works by using automated technology to navigate the IRS phone tree and wait on hold for you. When they reach a live agent, you get a call connecting you directly. They're not jumping any queue - they're just handling the waiting for you. It's definitely not a scam. They don't ask for any personal tax information at all. You're connected directly to the official IRS phone line, and they just handle the wait time. I was skeptical too, but when I got connected to an actual IRS agent who confirmed they were with the IRS, I realized it was legitimate.

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Mary Bates

•8M

I need to apologize for calling Claimyr a scam in my previous comment. I was so frustrated with tax season that I was cynical about everything. After trying to call the IRS myself THREE TIMES and waiting over an hour each time only to get disconnected, I bit the bullet and tried Claimyr. They actually got me through to an IRS agent in about 20 minutes. The agent was able to answer my specific questions about reporting 1099 income from multiple states, which was super helpful for choosing between FreeTaxUSA and TaxAct. For what it's worth, based on my situation, the IRS agent said either platform would work, but recommended something with good support for multiple state filings if I had income from different states.

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Clay blendedgen

•8M

Audit protection isn't legal representation, but it typically provides guidance through the audit process. For FreeTaxUSA, their "Audit Assist" gives you access to tax professionals who will answer your questions and help you understand what documents you need and how to respond to IRS notices. TaxAct's protection is similar, but in my experience, their customer service is generally less responsive. Neither service will represent you before the IRS - for that you'd need a CPA or tax attorney. It's basically paying for a helpline if you get audited.

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Lorenzo McCormick

•8M

I'm gonna go against the grain here... I used TaxAct last year for my 1099 income and actually preferred it over FreeTaxUSA (which I used the year before). TaxAct has a better interface for tracking year-over-year changes in your business income, which I found helpful. Their expense categorization was more intuitive for me, and their explanations of tax concepts were clearer. Yes, they do push upgrades more, but if you just keep clicking "continue with free" you can still complete everything. And their state filing was only about $5 more than FreeTaxUSA when I filed.

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