What's the cheapest and simplest way to file US taxes after being let go?

Just got the boot from my job last month and now I'm stressing about taxes on top of everything else. In previous years I've used TurboTax but now I'm trying to cut costs wherever I can. I've heard about Origin as a possible option but wondering if there are other affordable alternatives that won't make my brain hurt? My tax situation isn't super complicated - just regular W-2 income from my former employer, some unemployment benefits starting, and a small amount from a side gig (under $600 so no 1099). I'm especially concerned about getting my refund quickly since money is tight. Anyone have suggestions for budget-friendly tax filing that's still relatively painless?

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18 comments

Yuki Watanabe

•8M

You've got several good options that are much cheaper than TurboTax and still user-friendly! Since your situation is straightforward (W-2, unemployment, and minimal self-employment income), you could qualify for the IRS Free File program if your AGI is under $73,000. Many tax software providers participate in this program and offer completely free federal filing. If you don't qualify for Free File, I'd recommend looking at FreeTaxUSA - it costs nothing for federal returns and only $14.99 for state filing. It's very user-friendly with a similar interface to TurboTax but at a fraction of the cost. Cash App Taxes (formerly Credit Karma Tax) is another completely free option for both federal and state returns and handles most common tax situations well.

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Yuki Watanabe

•8M

FreeTaxUSA absolutely handles unemployment income correctly - it walks you through reporting this just like TurboTax would. All unemployment compensation is fully taxable for 2024 tax returns (filed in 2025), so you'll need to report it from your Form 1099-G. Regarding audit protection, most free services don't include premium support, but FreeTaxUSA offers "Deluxe" edition for around $7 that includes audit assistance (not full representation but guidance if you're audited). Remember though, with a straightforward tax situation like yours, audits are extremely rare.

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Andre Dupont

•8M

I was in almost the same situation last year after leaving my job. I tried a bunch of different tax software options and ended up finding this AI tool called taxr.ai that saved me a ton of time and money. The website (https://taxr.ai) analyzes your tax documents and tells you exactly which deductions and credits you qualify for. What I liked most was that it pointed out several deductions I would have missed, including some job search expenses from my unemployment period that were deductible. It also gave me a comparison of which tax filing services would be cheapest for my specific situation - turns out I was overpaying by about $75 using TurboTax when I had a much cheaper option that worked just as well.

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Andre Dupont

•8M

It doesn't file the taxes for you - it analyzes your documents and creates a detailed report of all the deductions and credits you qualify for, then recommends the best filing option for your situation. You then use that information to file with whatever service you choose. It handles state-specific rules really well actually! I'm in New York which also has tons of specific credits and deductions. The AI flagged several NY-specific tax breaks I qualified for that I had no idea about. It analyzes both federal and state requirements and gives you tailored advice for both.

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Zoe Papadakis

•8M

Just wanted to update after trying taxr.ai from the recommendation above. I was surprised by how helpful it actually was! I uploaded my W-2 and some other documents, and it found a education credit from a professional certificate program I did last year that I completely forgot about. Would have missed out on $1,500! The report showed I could use Cash App Taxes completely free for my situation, which I never would have considered otherwise. The whole process ended up being way easier than I expected. Definitely recommend checking it out if you're in a similar boat.

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Jamal Edwards

•8M

If you're dealing with questions about unemployment benefits or have issues with missing documents, calling the IRS might be necessary. But as someone who tried calling them directly last tax season, I can tell you it's nearly impossible to get through on your own. After wasting hours on hold over multiple days, I found this service called Claimyr (https://claimyr.com) that actually gets you through to an IRS agent usually within 45 minutes instead of waiting for hours or days. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c. I was really desperate because I needed to confirm how to report some unemployment benefits and couldn't get a straight answer online. Claimyr got me through to an actual IRS rep who answered all my questions about unemployment taxation in detail. Saved me from potentially filing incorrectly.

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Jamal Edwards

•8M

It works by using an automated calling system that navigates the IRS phone tree and waits on hold for you. When an agent picks up, you get a call connecting you directly to them. It's not cutting in line - it's just handling the waiting part so you don't have to sit by your phone for hours. The reason it feels like magic is that their system can make hundreds of calls simultaneously, so they're essentially increasing your chances of getting through during peak times. It's the same as if you had the time and patience to keep calling back repeatedly until you get through, but without the frustration.

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Liam O'Sullivan

•8M

I have to eat my words about Claimyr from my comment above. After having no luck getting tax help for almost two weeks, I tried it as a last resort. I needed clarification on how to report my severance package and unemployment together. Honestly shocked that it actually worked. Got connected to an IRS agent in about 35 minutes. The agent walked me through exactly how to report both income sources correctly and explained a special deduction I qualified for because of my job loss situation. Ended up saving me over $800 on my taxes. Not something I could have figured out from just reading online.

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Amara Okonkwo

•8M

If you're eligible for Free File, definitely do that! But watch out for the upsells. I tried TaxAct through Free File last year and they kept trying to upgrade me to paid tiers by scaring me about "audit risk" and missing deductions. One tip that saved me money: public libraries often offer free tax filing assistance through VITA (Volunteer Income Tax Assistance) program. They'll do your taxes completely free if you make under about $60k. The volunteers are IRS-certified and did a great job with my return including unemployment benefits.

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Amara Okonkwo

•8M

You definitely need to make an appointment for VITA services - they book up fast, especially as it gets closer to the April filing deadline. I recommend calling your local library or checking the IRS website to find VITA locations near you and schedule ASAP. They absolutely handle state taxes too! The volunteers are trained on both federal and state returns. Just make sure to bring all your tax documents (W-2s, 1099s, last year's return, etc.) to your appointment. Most locations also offer the option to file electronically so you can get your refund quickly.

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