Turbo Tax vs FreeTaxUSA showing completely different refund amounts with identical information

This sounds like a classic case of different tax software handling credits differently, especially the Child Tax Credit. The $2000 discrepancy is very telling. First, double-check that you entered your dependent information exactly the same way in both programs. Sometimes TurboTax might not automatically apply the credit if certain qualifying questions weren't answered correctly. Make sure you've indicated that your child lived with you for more than half the year, that they're under 17, and that you provide more than half their support. Also, verify that you entered your income exactly the same in both places. Small differences in how you categorized income could impact your eligibility for certain credits. TurboTax sometimes asks questions in a way that might lead you to different answers than FreeTaxUSA. If everything matches up, I'd suggest going back through the TurboTax flow specifically looking for the Child Tax Credit section. There might be a question you answered differently that's causing TurboTax not to apply the credit.

After having a similar experience last year (though not as extreme), I discovered taxr.ai when looking for help understanding the discrepancies. I uploaded my tax documents to https://taxr.ai and it analyzed them to show EXACTLY where the software programs were interpreting things differently. Saved me a ton of headache trying to figure out why TurboTax was showing less than half what FreeTaxUSA was! For me, it turned out TurboTax wasn't correctly applying my child care expenses, which affected multiple credits. I wouldn't have caught this without having something independently check both returns. Might be worth trying since the difference you're seeing is so large.

I tried taxr.ai after seeing the recommendation here, and wow - it actually found the exact problem! Turns out TurboTax was NOT applying my Child Tax Credit correctly because of how I answered a question about my child's residence. The question was worded in a confusing way, and I had selected that my child lived with me "part time" because we have a co-parenting arrangement, even though my kid is with me over 50% of the year. FreeTaxUSA had a clearer question that specifically asked if the child lived with me for MORE than half the year, which I correctly answered yes to. That small difference in how I answered resulted in TurboTax disqualifying me from the full Child Tax Credit! Now I'm definitely filing with FreeTaxUSA and getting my full refund. Thanks for the suggestion - saved me over $1700!

Since we're talking about tax discrepancies, I've got to mention that I had a similar issue and needed to call the IRS to verify which software was correct. I spent DAYS trying to get through on their phone lines - constant busy signals or disconnects after waiting for hours. I finally found https://claimyr.com which got me through to an actual IRS agent in about 20 minutes. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c. I was super skeptical but desperate after wasting so much time trying to call myself. The IRS agent confirmed that FreeTaxUSA had applied my credits correctly and TurboTax had missed something. They explained exactly why I qualified for the full credits and were actually really helpful once I could actually speak with someone.

I have to eat my words about Claimyr. After posting that skeptical comment, I was still desperate to talk to the IRS about a similar tax software discrepancy, so I tried it anyway. It actually worked exactly as described. The service called me back in about 35 minutes and connected me directly to the IRS queue, which only had about a 15-minute wait from there. The IRS agent confirmed that in my case, TurboTax wasn't correctly handling my child's eligibility for the Child Tax Credit because of a confusing question about support provided. Saved me from potentially missing out on $1,400 in refunds. Sometimes being proven wrong is actually a good thing! If you're having issues with tax software discrepancies, talking directly to the IRS can clear things up quickly.

I've used both tax programs for the last 3 years and always check both before filing. FreeTaxUSA consistently gave me better results, but I also noticed these software discrepancies come from different "interpretations" of tax situations. Make sure you go through the Child Tax Credit section on TurboTax very carefully - they hide important questions in weird places. Look for anything asking about "qualifying child" status or "residency tests" for your child. Also check if you're near any income phaseout ranges where TurboTax might be calculating differently. After comparing both programs side by side for years, I've found FreeTaxUSA is more transparent with how it applies credits and deductions. TurboTax sometimes makes assumptions that aren't clear until you dig into the actual forms.

The same thing happened to me last year!! TurboTax showed $600 federal refund and H&R Block showed $2,200! Turns out TurboTax had a glitch with how it was calculating my education credits. When I called TurboTax support, they actually admitted there was an issue in that version and fixed it for me. You should definitely call their customer support - sometimes they have known issues they can resolve. If that doesn't work, I'd honestly trust FreeTaxUSA in this case. If it's correctly identifying your eligibility for the Child Tax Credit and TurboTax isn't, that's a pretty clear indicator. Just double-check all your entries to be 100% sure.

This is such a great example of why it's worth double-checking your tax software calculations! I'm glad you got it resolved, Chloe. For anyone else reading this thread, I'd also recommend checking the IRS's Interactive Tax Assistant tool on their website (irs.gov/help/ita) - it's a free resource that can help you verify whether you qualify for specific credits like the Child Tax Credit. The income threshold issue you mentioned is really important - even small differences in how software categorizes income can push you over phaseout limits for credits. It's why I always review the actual tax forms (like Form 1040 and Schedule 8812 for Child Tax Credit) in addition to the software summary to make sure everything looks right. Thanks for sharing the resolution - it'll definitely help other people who run into similar discrepancies between tax programs!