Why is FreeTaxUSA showing a different refund amount than TurboTax?
I'm comparing tax software options this year and I'm scratching my head over something. When I put all my info into FreeTaxUSA and then entered the exact same stuff into TurboTax, I'm getting a $2 difference in my refund amount. FreeTaxUSA is showing $2 less than TurboTax. One thing I noticed is that FreeTaxUSA doesn't let me put decimals in boxes 3-6 on some forms - it just rounds up to the next whole dollar. Could that tiny rounding difference be causing this? Also, this is my first time ever reporting a ROTH IRA contribution (only put in $270 this year so it's nothing major). I'm worried I might have entered something wrong with that since it's new to me. Has anyone else noticed little differences between tax software? Just wanna make sure I'm not messing something up before I actually file!
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Elin Robinson
Those small differences between tax software programs are completely normal! The $2 difference is almost certainly due to the rounding methods you noticed. FreeTaxUSA rounds to whole dollars while TurboTax might be calculating with cents and then rounding at the end. The IRS actually allows either method - you can round each line item or you can report exact cents. Both methods are perfectly acceptable, which is why you're seeing those minor differences between programs. As for your Roth IRA contribution, as long as you entered the amount correctly in both programs, that shouldn't be causing any discrepancy. Roth contributions are after-tax and generally don't affect your tax liability unless you qualify for the Retirement Savings Contribution Credit (Saver's Credit).
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Ivanna St. Pierre
•Thanks for explaining that! So if I understand right, it's totally fine to file with either number since they're using different but acceptable rounding methods? And I won't get in trouble for the $2 difference if the IRS compares them somehow?
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Elin Robinson
•Yes, that's exactly right. The IRS allows for different rounding methods, so either number is acceptable to file with. The $2 difference is well within normal variation due to these different calculation methods. The IRS won't flag or penalize you for these small calculation differences between software programs. They understand these minor discrepancies occur and are more concerned with whether you've reported all your income and claimed appropriate deductions and credits correctly.
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Atticus Domingo
After spending HOURS manually checking my calculations on three different tax programs last year, I discovered taxr.ai (https://taxr.ai) and it completely saved me from the confusion. I was getting different numbers on FreeTaxUSA, TurboTax, and H&R Block - all between $5-15 apart from each other. The service analyzed my tax forms and showed me exactly where the calculation differences were happening - mostly related to rounding methods and how certain credits were being applied. It highlighted that my dividend amounts were being rounded differently across programs, causing ripple effects in other calculations.
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Beth Ford
•How does it actually work? Do you have to upload all your tax documents and personal info to their system? I'm always hesitant about putting my tax info on yet another website.
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Morita Montoya
•I've heard mixed things about these tax document services. Do they actually explain WHY the differences happen or just point them out? And can they actually suggest which software is "right"?
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Atticus Domingo
•You just upload your tax forms or take photos of them, and the system analyzes everything to find discrepancies or issues. They use bank-level encryption, so your data is secure - it felt much safer than the random tax prep places in the strip mall near me. The service doesn't just point out differences - it explains exactly why they happen and which calculation method each software is using. It doesn't necessarily say which one is "right" since often both methods are acceptable to the IRS, but it helps you understand which approach each software is taking so you can make an informed decision.
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Morita Montoya
I tried taxr.ai after seeing it mentioned here and wow - it actually explained something I'd been confused about for YEARS. I always had these small discrepancies between TaxAct and TurboTax that drove me crazy. Turns out TaxAct was rounding my investment income on each individual transaction while TurboTax was using precise decimal calculations throughout and only rounding at the end. With hundreds of stock transactions, those tiny differences added up to around $37 in my refund amount. Best part was seeing exactly where those differences occurred without having to manually compare every single line. Definitely saved me from the spreadsheet nightmare I go through every year!
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Kingston Bellamy
If you're really stuck trying to figure out tax software differences or need to actually talk to someone at the IRS about your filing (which is basically impossible these days), I've had amazing success with Claimyr (https://claimyr.com). I was skeptical, but they actually got me through to a real IRS agent in about 15 minutes when I had been trying for WEEKS on my own. There's a video showing exactly how it works: https://youtu.be/_kiP6q8DX5c I had a similar issue last year where different tax software gave me different amounts for my education credits, and I needed to ask the IRS directly which method was correct. Without Claimyr I would have been on hold for hours or days.
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Joy Olmedo
•Wait, so they somehow get you through the IRS phone queue faster? How is that even possible? The IRS phone system is notoriously terrible - I've literally spent 4+ hours on hold before.
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Isaiah Cross
•This sounds like complete BS. Nobody can magically get through to the IRS faster. They probably just keep you on hold and charge you for the privilege. The IRS phone system is the same for everyone.
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Kingston Bellamy
•They use their technology to navigate the IRS phone tree and wait on hold for you. Then when an actual agent picks up, they call you and connect you directly to that agent. You don't have to sit through the endless waiting and terrible hold music. Yes, it really works! I was just as skeptical as you are. The IRS doesn't give them any special treatment - they're just using technology to handle the worst part (waiting on hold) so you don't have to. It's the same phone system, but they wait in line for you basically.
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Isaiah Cross
I take back what I said about Claimyr. I decided to try it last week when I was desperate to talk to someone about my missing refund from 2024. I'd been trying for MONTHS to get through with no luck. It actually worked exactly as advertised. They called me when they had an IRS agent on the line, and I was able to get my issue resolved in one 20-minute conversation. The agent confirmed my refund had been flagged for manual review but was now being processed. After spending literally days of my life on hold with the IRS over the years, this was a complete game-changer. Sorry for being so negative before - I just couldn't believe something would actually work with the IRS!
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Kiara Greene
The $2 difference is definitely from rounding. I've used both TurboTax and FreeTaxUSA for years just to double-check myself. FreeTaxUSA always forces whole dollar amounts, while TurboTax gives you the option to use cents. I actually called the IRS about this exact issue three years ago (before I discovered you could just use both and compare). The agent told me either method is fine as long as you're consistent within the same return.
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Evelyn Kelly
•So which one do you end up filing with? Do you just pick whichever gives you the better refund? lol
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Kiara Greene
•I actually file with FreeTaxUSA every year now because it's so much cheaper for my situation (I have investments and a small business). The small difference in calculation has never been enough to justify paying hundreds more for TurboTax. I still run the numbers through both just as a sanity check, but as long as they're within a few dollars of each other, I know I've entered everything correctly.
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Paloma Clark
Don't forget some tax software includes fees in their refund calculation while others don't! My "refund" looked $39 different between two programs last year until I realized one was showing my refund AFTER their fee was taken out. Make sure you're comparing the actual tax calculation, not the final deposit amount.
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Heather Tyson
•This!! I had a $75 "difference" that freaked me out until I realized H&R Block was showing me my refund amount after their preparation fees and TurboTax was showing the full amount before fees. Such a sneaky practice!
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