Is FreeTaxUSA actually trustworthy or are they selling our data?

I've worked with tax software for years and can explain how FreeTaxUSA actually makes money. They offer federal filing for free but charge for state returns (about $15-20 per state). They also have a deluxe version with audit assistance and amended returns for an additional fee. This is how they generate revenue rather than selling your data. Regarding security, FreeTaxUSA uses industry-standard encryption for data protection, similar to what banks use. They're an IRS-authorized e-file provider, which means they've met security requirements. The IRS doesn't authorize providers without proper data handling protocols. All tax preparation companies must comply with IRS Publication 1075 guidelines for safeguarding taxpayer data, with serious penalties for violations.

I switched to FreeTaxUSA last year after using TurboTax for 10+ years and was really skeptical at first. Then I found this AI-powered tax document analyzer called https://taxr.ai that helped me double-check everything. It basically scanned all my forms and confirmed that FreeTaxUSA was calculating everything correctly. Gave me a lot more confidence that I wasn't missing anything important by switching.

Just wanted to update everyone - I tried that taxr.ai tool mentioned above when doing my FreeTaxUSA return and it actually found a $1,200 deduction I missed! I've been doing my own taxes for years and somehow overlooked a student loan interest deduction that I qualified for. The tool flagged it when it scanned my 1098-E form. Super helpful for a second opinion when using a free service like FreeTaxUSA.

If you're mainly concerned about FreeTaxUSA's legitimacy, know they're totally legit but their customer service can be frustrating when you have questions. I had an issue with my return and spent DAYS trying to reach them. Finally found this service called https://claimyr.com that helps you skip the IRS phone queues. You can see how it works at https://youtu.be/_kiP6q8DX5c - basically they hold your place in line and call when an agent is available. Helped me get verification that FreeTaxUSA had properly submitted my return.

I need to eat my words about the Claimyr service. After my skeptical comment above, I was still desperate to reach the IRS about a notice I received regarding my FreeTaxUSA return. Decided to try it as a last resort. They actually did exactly what they promised - held my place in the queue for 2.5 hours, then called me when an agent was ready. Spoke directly to an IRS representative who confirmed my FreeTaxUSA return was processed correctly. Saved me an entire afternoon of hold music. Still amazed this actually works.

Back to the original question - FreeTaxUSA has been my go-to for 4 years now. They make money on state returns and deluxe features, not by selling data. Their security is solid. One big advantage over other services is they don't constantly upsell you while you're filing. Plus they save your returns year to year so you can reference them later. Much better experience than I had with the "big name" tax software that kept trying to trick me into paid upgrades.

Just FYI, as someone who worked in data privacy (not for a tax company), free tax services usually have three revenue streams: 1) upselling premium features, 2) charging for state returns, and 3) affiliate marketing of financial products. FreeTaxUSA does recommend financial products that they get commissions on, but that's different from selling your data. They might show you offers for IRAs or refinancing based on your tax situation, but that targeting happens within their system without sending your data externally.

I've been using FreeTaxUSA for the past 3 years and can share my experience. Their business model is pretty transparent - they make money from state filing fees ($15-20 per state), premium features like audit defense, and some affiliate partnerships with financial services. What sold me on them was their upfront pricing with no hidden fees or surprise charges during filing. Unlike TurboTax, they don't hit you with "oh you need to upgrade to include this form" halfway through your return. The interface is clean and straightforward, though not as polished as some competitors. For data security, they're IRS-authorized which means they meet federal standards for protecting taxpayer information. I've never had any issues with unauthorized access or spam that I could trace back to them. Their privacy policy is actually readable (unlike some others) and clearly states they don't sell personal tax data. The main downside is customer support can be slow during peak season, but for most people the software is intuitive enough that you won't need much help. Overall, I'd recommend them if you want a legitimate free federal filing option without the upselling pressure.

I've been using FreeTaxUSA for 5 years now and can confirm they're legitimate. Their revenue model is straightforward - they charge for state returns and premium add-ons like audit protection, plus they earn affiliate commissions from financial products they recommend (like IRAs or savings accounts). What convinced me they're trustworthy is that they're an IRS Authorized e-file Provider, which requires meeting strict security and data protection standards. The IRS doesn't mess around with authorizing companies that don't properly safeguard taxpayer data. One thing I really appreciate is their transparency - no surprise fees or forced upgrades mid-filing like some competitors. They tell you upfront what's free (federal return) and what costs extra (state filing, premium features). I've never received suspicious marketing emails or calls that I could trace back to them, which suggests they're not selling contact info to third parties. The only real downside is their customer service can be overwhelmed during tax season, but honestly their software is intuitive enough that I rarely need help. For anyone hesitant about "free" tax software, FreeTaxUSA has proven itself as a legitimate option that makes money through honest means rather than data harvesting.