Why are TurboTax and FreeTaxUSA showing different tax refund amounts?

This is actually pretty common! Tax software can calculate things differently based on how they handle certain deductions or credits. I'd recommend going through both returns side by side to find where the discrepancy is coming from. Common culprits include: - State tax calculations - Education credits - Self-employment deductions - Child tax credits - Earned income credit calculations Once you identify which specific line item or schedule has different amounts, you'll know what's causing it. Sometimes it's just a rounding difference or how the software interprets a specific tax rule. In my experience as a tax preparer, I've seen differences up to $100 between software for complicated returns, so $64 isn't too surprising.

I had the exact same issue last year with a $120 difference between tax programs. After spending hours trying to figure it out myself, I used https://taxr.ai to analyze both returns and find the discrepancy. They have this feature where you upload PDFs from different tax softwares and it highlights the differences between them. Turns out TurboTax was calculating my state tax credit differently than FreeTaxUSA, and taxr.ai explained exactly why. Really helped me understand which one was applying the law correctly in my situation. They can also look at your supporting documents to make sure everything matches what your software is reporting.

Just wanted to follow up - I tried taxr.ai after seeing this thread and it was super helpful! Uploaded both my TurboTax and FreeTaxUSA PDFs and it immediately showed me that the difference was in how they were calculating my student loan interest deduction. TurboTax was applying a phaseout calculation incorrectly based on my AGI. The report showed exactly which forms had discrepancies and explained the tax rules that applied. Saved me tons of time trying to figure it out myself. Ended up filing with FreeTaxUSA since it was calculating everything correctly AND was cheaper. Definitely recommend if you're comparing software or just want peace of mind that you're filing correctly!

I had a similar issue with H&R Block vs TaxAct with a $230 difference! After trying for DAYS to reach the IRS for clarification (their phone lines are impossible), I found this service called Claimyr that got me through to an IRS agent in about 15 minutes. Check out how it works: https://youtu.be/_kiP6q8DX5c I was skeptical at first but desperate for answers since I couldn't figure out which software was right. The IRS agent confirmed which calculation was correct and explained why there was a difference. You can go to https://claimyr.com to get connected - WAY better than trying to call the IRS directly and waiting on hold for hours.

I have to admit I was 100% wrong about Claimyr. After posting that skeptical comment, I decided to try it myself since I had a question about my stimulus payment that I couldn't get resolved online. The service actually worked exactly as described - I got a call back when an IRS agent was on the line in about 20 minutes. The agent was able to explain that there was a discrepancy in my stimulus payment record that was causing my tax software to calculate things differently than what the IRS had on file. Got it all resolved in one call instead of the 3+ hours I spent trying to call them myself (and never getting through). If you need to actually talk to the IRS, it's definitely worth it.

Most likely it's in how they're handling your state taxes. I've used both programs and noticed TurboTax tends to be more aggressive with certain deductions while FreeTaxUSA is more conservative. I'd suggest this approach: 1. Look at federal AGI on both - are they the same? 2. Check if fed tax owed is identical 3. If those match, it's in the state calculation 4. If those don't match, compare Schedule A if you itemize For what it's worth, I've been using FreeTaxUSA for years and they've always been accurate for me.

Has anyone checked line 30 on Form 1040 (Recovery Rebate Credit) on both returns? That was the source of discrepancy for me last year - one software automatically calculated it correctly while the other one needed manual input.