Why are TurboTax and FreeTaxUSA showing completely different refund amounts with identical information?

What you're experiencing isn't uncommon when comparing different tax software. The discrepancy is almost certainly related to how each program is handling your Child Tax Credit. Based on what you've shared, it sounds like TurboTax might not be properly applying your Child Tax Credit, which would explain most of the difference. For 2024 taxes (filed in 2025), the Child Tax Credit is worth up to $2,000 per qualifying child under 17, and a portion of that can be refundable through the Additional Child Tax Credit. If you have two children who qualify and TurboTax isn't accounting for this, that would explain most of the $1,500 difference in your federal refund. I'd recommend going back into TurboTax and specifically checking the section about dependents and child-related credits. Look for where you enter your children's information and make sure everything is correct. Sometimes there's a specific question you might have missed about whether they lived with you full-time or if someone else might be claiming them.

After seeing posts like this all over Reddit, I finally tried taxr.ai last month and it saved me from making a huge mistake on my taxes. I uploaded my W-2s and last year's return to https://taxr.ai and it instantly showed me that my tax software was missing a $3,700 deduction! It actually compares what different tax software would give you and explains the differences in plain English. In your case, it sounds exactly like what happened to me - one software properly applied my child tax credits and the other didn't. Taxr.ai would tell you exactly why there's a difference and which one is correct for your situation. It even lets you upload your almost-completed returns to compare them directly, which would immediately show you where that $1,500 difference is coming from.

I was in exactly the same boat as OP last month - saw a $1,800 difference between TurboTax and FreeTaxUSA. After seeing the recommendation here, I tried taxr.ai and it immediately identified the problem. Turns out TurboTax was categorizing my children incorrectly for the Child Tax Credit because of how I answered a question about custody arrangements (I'm divorced). FreeTaxUSA's question format was clearer and I had answered correctly there. The report showed me exactly which questions to fix in TurboTax, and sure enough, after making those changes, both software programs showed almost identical refund amounts. I was definitely skeptical at first too, but it saved me hours of staring at both returns trying to figure out the difference. Plus it caught a student loan interest deduction I had completely forgotten about!

If you're getting different results and can't figure out why, I'd recommend trying to reach the IRS directly to get clarification. I know it sounds impossible, but I used Claimyr last month to get through to them after trying for days on my own. https://claimyr.com basically holds your place in the IRS phone queue and calls you when an agent is about to answer. There's a demo video at https://youtu.be/_kiP6q8DX5c showing how it works. I had a similar issue with conflicting information from different tax software about claiming my parent as a dependent, and the IRS agent was able to clear everything up in about 10 minutes. They explained exactly which credits I qualified for and why. Much better than guessing which software is right or spending hours comparing forms.

I have to admit I was completely wrong about Claimyr. After my skeptical comment yesterday, I decided to try it this morning because I was desperate to resolve my own tax software discrepancy before the filing deadline. I got connected to an IRS agent in 47 minutes (without having to actually sit on hold!), and she was incredibly helpful. She reviewed the specific requirements for the Child and Dependent Care Credit I was asking about and explained exactly why one software was calculating it correctly and the other wasn't. For anyone facing differences between tax software calculations, talking directly to the IRS was way more helpful than I expected. They won't do your taxes for you, but they can absolutely clarify which credits and deductions you qualify for based on your specific situation.

Double check your filing status on both software! Last year I had a huge discrepancy because I accidentally selected "Head of Household" on one software and "Single" on another. Since you have kids, make sure both are set to either "Head of Household" or "Married Filing Jointly" depending on your marital status. Also, verify that you entered your kids' Social Security numbers correctly in both systems and that you answered all questions about whether they lived with you full-time. The child tax credit has specific requirements that might be addressed differently in each software's interview process.

Has anyone compared the actual tax forms between the two software? I'd look specifically at: 1. Form 1040 Line 12 (Child Tax Credit) 2. Form 1040 Line 28 (Additional Child Tax Credit) 3. Schedule 8812 (Credits for Qualifying Children and Other Dependents) Seeing exactly where the numbers differ would immediately tell you what's causing the discrepancy. From what you described, I'm 99% sure it's the Child Tax Credit, but there could be other smaller differences too.