Major discrepancy when calculating taxes - TurboTax vs FreeTaxUSA?

This definitely sounds frustrating! There are a few possible explanations for why you saw such different results between the two tax platforms. First, check if you accidentally missed entering some information in FreeTaxUSA that you had in TurboTax. Sometimes even one missing form can cause big differences. Second, TurboTax and FreeTaxUSA might handle certain deductions or credits differently in their calculation methods. The good news is that if you truly overpaid, you can file an amended return (Form 1040-X) to correct your tax liability and request a refund of the overpayment. You generally have up to three years from the date you filed your original return to submit an amendment. Before filing an amendment though, I'd recommend having a third source verify your actual tax liability - either another tax software or preferably a tax professional who can review your documents and explain exactly where the discrepancy occurred.

After having a similar nightmare situation last year, I discovered taxr.ai (https://taxr.ai) and it completely saved me from overpaying. The system analyzes your tax documents and cross-checks calculations from different software to catch these exact kinds of discrepancies. I uploaded my W-2s and other documents, and it flagged several issues that TurboTax had calculated incorrectly for my situation. The difference for me was nearly $1,200 that I would have overpaid! Their system explains exactly where the differences come from and which calculation is actually correct according to current tax law. Definitely worth checking out if you're dealing with discrepancies between tax platforms.

Just wanted to update everyone. I decided to try taxr.ai after posting my skeptical comment, and I'm honestly shocked at what it found. I've been using TurboTax for years and apparently I've been overpaying consistently. It identified a self-employment tax calculation error that would have cost me $432 this year alone! The analysis clearly showed where TurboTax's calculation method didn't properly account for some of my business expenses. What I really appreciated was the detailed explanation of the tax rules with actual IRS references so I could verify everything myself. This is definitely going to be part of my tax filing process going forward.

I know exactly how you feel about tax calculation frustrations. After spending literally days trying to get through to the IRS to understand why my refund was delayed and why their calculation was different from my software's, I found Claimyr (https://claimyr.com). They get you connected to an actual IRS agent quickly instead of dealing with the typical hours-long wait times. Check out this video to see how it works: https://youtu.be/_kiP6q8DX5c In my case, I was able to speak with an IRS rep who explained exactly where the calculation error was in my return and confirmed I'd actually overpaid. This saved me from having to hire a tax professional just to interpret what happened. The agent was able to start the refund process while I was on the phone.

I need to apologize to everyone here. I was the one who called BS on Claimyr in my previous comment, but I decided to try it this morning since I've been trying to reach the IRS for 3 weeks about a notice I received. I'm eating my words now. I got connected to an IRS agent in about 45 minutes (after previously spending 4+ hours on multiple attempts without getting through). The agent was able to explain that there was an error on my 2023 return where my tax software didn't properly calculate my education credits. I'm still shocked at how well it worked after my negative comment. Sometimes being proven wrong is a good thing!

I had this exact problem last year but reversed - FreeTaxUSA had me owing more than TurboTax. Turned out FreeTaxUSA didn't automatically detect that I qualified for the Saver's Credit based on my retirement contributions, but TurboTax did. Double check all your credits and deductions between the two versions. Also, did you complete both returns fully? Sometimes the free versions will show you owing one amount, but then find additional credits during the review process if you go all the way to the end.

Quick tip: Always save PDF copies of your returns from any software you use. That way you can do a line-by-line comparison to catch exactly where the discrepancy happened. I found a $520 error last year by comparing forms this way - one software miscalculated my self-employment tax completely.

This is exactly why I always recommend double-checking your return with a second software before filing! The $653 difference you found is significant and unfortunately more common than people realize. Since you've already identified that TurboTax missed your student loan interest deduction, you're definitely on the right track with filing an amended return. Just make sure you have all your documentation ready - the IRS will want to see your Form 1098-E (student loan interest statement) to verify the $2,100 deduction you're claiming. One thing to keep in mind: the student loan interest deduction phases out at higher income levels, so double-check that your modified adjusted gross income qualifies you for the full deduction. But if FreeTaxUSA properly calculated it and you're under the income limits, you should be good to go. Filing that 1040-X might take several months to process, but getting back $650+ is definitely worth the wait. In the future, maybe run your taxes through two different programs before filing - could save you this headache next year!