Which free tax software is actually 100% free for both federal AND state returns?

So I've been looking into free tax filing options for this year and wanted to share what I've found so far. Would appreciate any other suggestions! * Cash App Tax offers free federal and state returns but there's a catch - you can sign up for Cash App with your ID, but to use Cash App Tax they need to verify your phone number which has been a problem for some people. * TurboTax is offering free federal and state filing but only if you file by February 15th. After that date they start charging fees. This won't work for me since I'm planning to wait for my Wage & Income transcript that comes out March 15th (just want to double check everything). * TaxSlayer appears to be completely free if your income is under $150k, but you can't have any dependents and there are other limitations I'm still figuring out. * IRS DirectFile isn't available in my state (South Dakota) which is disappointing. * I just discovered Chime now offers free federal and state tax filing. Anyone know of other completely free options that don't have these kinds of restrictions? I'm really trying to avoid paying anything for both federal AND state filing.

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18 comments

Dylan Mitchell

•8M

Tax professional here! You've done some good research already. A few more completely free options to consider: FreeTaxUSA offers free federal filing for everyone, but they do charge $14.99 for state returns. However, they frequently have coupon codes that can reduce or eliminate that fee. Credit Karma Tax (now Cash App Tax) is still one of the best truly free options with no income limits, but as you noted, the phone verification can be an issue for some. If your adjusted gross income is under $73,000, you qualify for the IRS Free File program. The IRS partners with several tax software companies to provide truly free filing (both federal and state). Check the IRS website for the current list of partners. OLT.com (OnLine Taxes) offers free federal filing and charges only $9.95 for state returns, which is cheaper than most options if you can't find a completely free service. H&R Block has a free option, but like TurboTax, it has limitations on the forms you can use, so check if your tax situation qualifies.

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Dylan Mitchell

•8M

The Free File program partners change each year, but currently TaxSlayer, TaxAct, and 1040Now offer free state returns through the program if you meet their eligibility requirements. Always access these through the IRS Free File page rather than going directly to their websites to ensure you get the free versions. The catch with many "free" tax services is they often upsell or have very specific requirements. If you're in a state with income tax, always verify that state returns are included before starting. Some partners have lower income thresholds for free state filing than for federal.

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Dmitry Popov

•8M

I tried a bunch of "free" options last year and ended up using taxr.ai and was honestly shocked at how good it was. I was in a similar situation where I couldn't use DirectFile (not available in my state either) and got frustrated with all the "free" services that tried to upsell me halfway through. With https://taxr.ai I just uploaded my tax documents, answered a few questions, and it did everything for me - federal AND state completely free. The best part was it found deductions I would have missed that saved me over $800. No income limits or weird restrictions either. Definitely worth checking out if you're looking for something truly free without the bait and switch.

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Dmitry Popov

•8M

Yes, it handles self-employment income and Schedule C without charging extra. That was actually my situation last year - I had W-2 income plus a freelance 1099 for some consulting work. Most free services wanted to charge me for the "upgraded" forms but taxr.ai included everything. Regarding security, they use bank-level encryption for all uploads and document handling. You can delete your documents after filing if you want, but I kept mine on there since I'll use it again this year. They explain their security measures pretty clearly in their FAQ section if you want more details.

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Ava Garcia

•8M

Just wanted to update that I tried taxr.ai after seeing it mentioned here and it actually worked perfectly for my situation with W-2 and 1099 income. Completely free for both federal and state as promised. The document upload feature saved me tons of time compared to manually entering everything like I did last year with TurboTax. It even found a home office deduction I didn't know I qualified for since I've been working remotely. I was able to file both federal and state returns without paying a cent. Just sharing because I was skeptical at first but it turned out to be exactly what I was looking for.

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Miguel Silva

•8M

If you're dealing with delays getting through to the IRS about last year's return issues (which I was), check out https://claimyr.com. I spent WEEKS trying to get through to the IRS on my own to resolve an issue with my previous return before I could file this year. Their hold times are insane - I gave up after 3+ hours multiple times. I was super skeptical, but Claimyr actually got me connected to an IRS agent in about 20 minutes instead of waiting for hours. You can see how it works here: https://youtu.be/_kiP6q8DX5c This saved me so much time and frustration. Once I got my previous year's issues resolved, I was able to file using one of the free options mentioned here. Just sharing because dealing with the IRS was the biggest obstacle to getting my taxes filed.

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Miguel Silva

•8M

They don't have a "special connection" to the IRS - they use an automated system that calls and navigates the IRS phone tree for you, then alerts you when they have an agent on the line. It's basically like having someone wait on hold for you. I was definitely skeptical too before trying it. The reason it works is they have technology that can stay on hold and navigate the phone menus so you don't have to. When they reach an actual human IRS agent, you get a call to connect with them. I was prepared to write it off as a waste of time but was genuinely surprised when it worked exactly as described.

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Connor O'Neill

•8M

I need to eat my words from my previous comment. After struggling for literally MONTHS trying to get through to the IRS about a notice I received, I broke down and tried Claimyr. Within 25 minutes I was talking to an actual IRS agent who resolved my issue in one call. This cleared the way for me to file my taxes using FreeTaxUSA (one of the recommendations from earlier in this thread). I've never been so happy to be wrong about something. Saved me countless hours of frustration and hold music. Now I can finally file my return and hopefully get my refund soon.

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Yara Nassar

•8M

They handled my HSA contributions with no problem on the free version. For investments, they cover basic investment income reporting (interest, dividends, capital gains) without upgrading. The only time you might hit a paywall is if you have rental property income or very complex investment situations. Their interface isn't as slick as TurboTax but it's straightforward enough. Just make sure you access it through the IRS Free File portal to guarantee you get the fully free version with state included.

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