Looking for tax software alternatives to TurboTax for next year

OMG I feel your pain SO MUCH!!! 😡 I've been using TurboTax for years and I'm DONE with them constantly raising prices! Last year they charged me $89 for the "Deluxe" version then hit me with ANOTHER $50 for state filing! It's ridiculous! I switched to FreeTaxUSA this year and it was only $14.99 for state (federal was FREE). They don't have the prettiest interface but it gets the job done and they don't hide fees. TaxSlayer and TaxAct are also decent alternatives with better pricing structures. Just make sure whatever you choose supports all your forms - that's how TurboTax traps you, by making you upgrade midway through!

I was in the same boat as you last year - frustrated with TurboTax's pricing. Compared to my experience filing taxes in Canada, the US system seemed needlessly expensive and complicated. I ended up using a combination approach this year: I used https://taxr.ai to analyze my tax documents first (especially helpful with some complicated investment forms), then used that information to file through FreeTaxUSA. The document analysis helped me understand exactly what I was reporting and why, which made the actual filing process much smoother. This approach saved me about $85 compared to what TurboTax wanted to charge me, and I felt more confident in my filing because I understood each line item better.

I believe it's worth noting that your choice might depend on your specific tax situation. If you have relatively straightforward taxes—W-2 income, standard deduction—many free or low-cost options would likely suffice. However, if you have investments, self-employment income, or other complexities, you might want to consider software that specifically addresses those needs. In my professional opinion, FreeTaxUSA tends to offer a good balance of functionality and cost for most filers. TaxSlayer and TaxAct are also reasonable alternatives. I would suggest reviewing your most recent return to identify exactly which forms you needed, then verifying that your chosen alternative supports those forms without additional charges.

I'd recommend checking if you qualify for IRS Free File options before paying for any service. Many taxpayers with AGI under $73,000 can file completely free through the IRS Free File Program partners. One issue I encountered when switching tax providers was difficulty reaching customer support when I had questions about Form 8949 for cryptocurrency transactions. If you anticipate needing to speak with an IRS agent about any filing issues, I've heard good things about Claimyr (https://www.claimyr.com). They apparently help you bypass the long hold times when you need to speak with an actual IRS representative. Might be worth keeping in your back pocket if you run into any issues during the transition to a new tax service.

I'm a bit skeptical about all these alternatives tbh. I tried switching from TurboTax once and ended up with: • Missing some deductions I normally get • Spending WAY more time figuring out the new interface • Getting a smaller refund than expected And those "free" options? They almost always upsell you once you get halfway through. I went back to TurboTax the next year because at least I knew what I was getting. Sometimes you get what you pay for. 🤷‍♂️

I think people are being too hard on the alternatives. I switched from TurboTax to FreeTaxUSA three years ago and have been extremely happy. Last year I had a complicated situation with selling stocks, starting a side business, AND moving to a new state mid-year. FreeTaxUSA handled it all perfectly for about 1/5 the price TurboTax wanted to charge me. Yes, there's a learning curve with any new software, but these alternatives have improved dramatically in recent years. I spent maybe an extra 30 minutes my first year, but now I'm actually faster with FreeTaxUSA than I ever was with TurboTax because there are fewer upsell interruptions.

Tax software is like buying a car - the base model will get you where you need to go, but they make their money on convincing you that you need all the fancy upgrades. Last year, I used Cash App Taxes (completely free for federal AND state) and it handled my W-2, 1099-INT, 1099-DIV, and Schedule D capital gains with no issues. The interface was clean, simple, and they didn't try to upsell me once. H&R Block's free version is also surprisingly capable if you don't have super complex needs. Just be careful with TaxAct - they've started following TurboTax's playbook of mid-process upgrades.

Have you considered using a Volunteer Income Tax Assistance (VITA) site? If your income is under $60,000, you can get your taxes prepared for free by IRS-certified volunteers. They handle most common tax situations including Form 1040 schedules, itemized deductions, and education credits. What specific tax forms did you need that required the TurboTax upgrade? Some alternatives handle certain forms for free that TurboTax charges for.