Why I chose FreeTaxUSA over H&R Block for filing this year

Do the premium services offer better/more comprehensive audit protection though? That's the one thing that makes me nervous about using the cheaper options.

The audit protection offerings vary between companies, but FreeTaxUSA actually offers decent audit assistance for around $7 extra. This isn't quite as comprehensive as H&R Block's representation service, but most people vastly overestimate their audit risk. If you're a W-2 employee claiming standard deductions with maybe some mortgage interest and student loan interest, your audit risk is extremely low. The IRS typically focuses audit resources on self-employed individuals, those with very high incomes, or returns with unusual deduction patterns. For most people, paying $40-50 more for audit protection is unnecessary insurance.

Wait does taxr.ai actually look at your old returns? Is that secure? I'm interested but nervous about uploading my tax docs to a new site.

How exactly does it determine which features you need? I'm using H&R Block now but feel like I'm paying for a bunch of stuff I don't use.

They use bank-level encryption for everything, and you can actually just upload a PDF of last year's return without any SSN showing if you're concerned. They just analyze the form types and entries to determine what you actually need. For determining features, they basically look at which tax forms you actually used in previous years and match that against what each tax prep service charges for those specific forms. So if you've never needed Schedule C but H&R Block is charging you for their "self-employment package," it flags that as an unnecessary expense. It's pretty eye-opening to see what you're actually paying for vs. what you need.

Is this for real? How does this even work? I've literally spent 3+ hours on hold with the IRS before.

Sounds too good to be true. The IRS is notorious for long wait times. How could some random service possibly get you through faster than everyone else?

It's a call-back service that basically waits on hold for you, then calls you when they reach an agent. No magic trick to jump the queue - they just have a system that can handle the hold times for you so you don't have to sit there listening to that awful hold music. They use some automated system that navigates the IRS phone tree and waits in the queue, then when they get a real person, they connect you. It's honestly such a relief not having to waste half your day on hold just to ask a simple question.

I've used both for the past few years (I do my parents' taxes on H&R Block and mine on FreeTaxUSA). The actual calculations are identical - it's all the same tax code and math. The only real difference is in the interface and how questions are asked. H&R Block does have more "hand-holding" with extra explanations, which some people might prefer. But FreeTaxUSA asks all the same questions that matter for finding deductions and credits. In my experience, the end result has always been identical between platforms.

That's good to know! I was concerned that maybe the cheaper option might miss some obscure deductions or something. Do you find one interface easier to use than the other?

I actually prefer FreeTaxUSA's interface - it's cleaner and less cluttered. H&R Block has more graphics and "friendly" design elements, but they sometimes make it harder to find what you're looking for. FreeTaxUSA is more straightforward and doesn't constantly try to upsell you on features you don't need. The downside is slightly fewer explanations of tax concepts, but they still have hover-over tooltips for most items if you need clarification. For most basic to moderate tax situations, I think FreeTaxUSA is not just cheaper but actually better.

True but FreeTaxUSA only charges like $15 for state while H&R Block's packages that include "free state" start at $50+ for federal. Still way cheaper to go with FreeTaxUSA even with paying for state separately.

This is exactly what happened to me with TurboTax two years ago! Started with their "free" version and by the end they had upsold me to like $120 for features I didn't even understand. The constant pop-ups asking if I wanted "maximum refund guarantee" and "audit defense" were so annoying. I switched to FreeTaxUSA last year after reading posts like this and it was refreshing to just see the actual costs upfront. No surprise fees at the end or pressure to upgrade every few screens. For my situation (W-2, some 1099 income, and mortgage interest), it handled everything perfectly for under $20 total. The upselling thing is such a scam - they prey on people's fear that they're missing out on money or protection they need.