Has anyone used Free Tax USA for small business and 1099 income filing?

Did you find the audit protection worth paying extra for? I've heard mixed things and I'm worried about getting flagged since I have a lot of business deductions this year.

How does it handle things like QBI (Qualified Business Income) deduction? My business made about $45k last year and I've heard that can be tricky to calculate correctly.

The audit protection is mostly peace of mind - I've personally never needed it, but I always add it just in case. It's only like $7 extra, and considering how much I'm saving compared to an accountant, it seems worth it to me. The software itself is pretty good at flagging potential audit triggers anyway. For QBI deduction, Free Tax USA actually calculates that automatically once you enter all your business income and expenses. I had about $60k in business income last year, and it figured out my 20% deduction without me having to do any special calculations. The software prompts you with the right questions to make sure you qualify.

How does it compare price-wise to Free Tax USA? And does it actually file for you or just give you the numbers to enter somewhere else?

Does it handle multiple income streams? I have a W-2 job, plus Etsy shop income, plus some freelance design work. Previous tax software got confused about separating these properly.

It's more expensive than Free Tax USA but still way cheaper than your accountant's quote. What makes it worth it is that it actually finds deductions you might miss on your own. It's somewhere in between DIY and full-service - it analyzes everything and gives you a completed return that you can review before filing. For multiple income streams, that's actually where it shines. I have a similar situation with a part-time W-2 plus my main consulting business and a small rental property. The system separated everything correctly and even suggested how to allocate some expenses between the different income sources to maximize deductions legally.

Wait, how does this actually work? They somehow get you through the IRS phone system faster? Seems like that shouldn't be possible.

I'm skeptical. The IRS phone system is notoriously bad. How could some third party service possibly get around that? Sounds like they're just taking your money for something you can do yourself.

They use an automated system that keeps dialing and navigating the IRS phone tree for you. Instead of you personally waiting on hold for hours, their system does it, then calls you when they've got an actual human agent on the line. It's basically like having someone else wait in line for you. The skepticism is totally understandable. I felt the same way! But when you've tried calling yourself 15+ times with no success, $25 or whatever it costs seems worth trying. I was able to get my 1099 issues resolved in one call after getting through to an agent, which saved me over $900 in incorrect penalties.

Thanks for the info! About how long did it take you to complete your filing with a photography business? I'm in graphic design with around 20-25 clients who sent 1099s last year.

The first year took me probably 4-5 hours total, spread over a weekend. I had to learn where everything goes and how to categorize expenses properly. But now I can do it in about 2 hours since I'm familiar with the system. With 20-25 clients sending 1099s, you'll spend some time entering those, but the system makes it pretty straightforward. Just have all your documents organized before you start. The nice thing is you can save and come back to it, so you don't have to do it all in one sitting.

I switched from TurboTax to Free Tax USA last year and will never go back. TurboTax kept upselling me on everything while Free Tax USA just charged a flat fee for state filing. The interface isn't as polished but it asks all the same questions and gets the job done. For business stuff, I actually found Free Tax USA explains things more clearly without trying to push you toward upgrading. They both found the same deductions in my case, but Free Tax USA was about $140 cheaper all-in. The only real difference I noticed was that TurboTax imports forms directly from some companies, while with Free Tax USA you have to enter the data manually.

Thanks! That's really helpful. Did you find the switch process easy? I'm worried about losing all my previous years' data that's in TurboTax.

The switch was actually pretty straightforward! You can't transfer data between the systems, but honestly I found that was kind of a blessing in disguise - it forced me to review all my business expenses and deductions from scratch, and I actually found some things I'd been missing in previous years. Free Tax USA has a good "prior year comparison" feature where you can reference what you claimed last year while entering your current info. Just keep your prior year return handy as reference. The most time-consuming part was just re-entering my business info and setting up my expense categories again, but that's really a one-time thing. One tip - if you're making the switch, start early in tax season so you're not rushed. But the actual filing process was just as smooth as TurboTax, and the savings were totally worth the minor inconvenience of not having my data auto-imported.