Will FreeTaxUSA allow filing with 1099-NEC for free? And will it accept $0 AGI from last year?

Hey all, I'm a little frustrated right now with tax filing options. I have a 1099-NEC I need to report this year, and it seems like every service is trying to upsell me for this simple form. HRBlock is asking for $35 just because I have this 1099-NEC, which feels like highway robbery. I'm considering switching to FreeTaxUSA but have two concerns: 1) Will they let me file with a 1099-NEC for free? And 2) Can I enter $0 for last year's AGI? I used Credit Karma last year but now I can't access my old returns without downloading Cash App (which I don't want to do). Any insights would be super helpful! Sorry if this is a basic question, but I'm trying to avoid unnecessary fees for something that should be simple.

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18 comments

Carmen Ortiz

•8M

FreeTaxUSA will let you file federal taxes with a 1099-NEC for free! That's actually one of their selling points - they don't charge extra for "complicated" returns like many other services do. Their revenue model is charging for state filing ($15-ish) while keeping federal free regardless of forms. As for the $0 AGI question - if you truly had $0 AGI last year, you can enter that. However, if you actually had income reported on last year's return, you should try to get the correct number. The IRS uses previous year's AGI as a verification method. If you enter the wrong amount, your e-filed return might get rejected. Have you tried requesting a tax transcript from the IRS website? You can get your AGI from that without needing Cash App.

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Carmen Ortiz

•8M

Yes, I'm positive FreeTaxUSA includes 1099-NEC filing in their free federal option. I've used them for years with various 1099 income. They only charge for state filing and some optional add-ons like audit protection. Getting a tax transcript is surprisingly easy these days. Go to IRS.gov and search for "Get Transcript Online." You'll need to create an account with ID verification if you don't have one. Once verified, you can instantly access and download your tax transcripts. The whole process takes about 15 minutes if your identity verification goes smoothly. The transcript will show your AGI from previous years.

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Zoe Papadakis

•8M

I switched to FreeTaxUSA last year after TurboTax tried charging me $89 for my "complex return" (which was just a W-2 and one 1099-NEC). FreeTaxUSA handled my 1099-NEC completely free for federal filing. When I was struggling with some documentation questions, I discovered this tool called taxr.ai (https://taxr.ai) that helped analyze my tax docs and give me clear explanations. It showed me which parts of my 1099-NEC needed special attention and helped me understand which business expenses I could actually deduct. Saved me tons of confusion since I'm not a tax expert by any means. For your AGI question, if you can't access last year's return, try calling the IRS automated system at 800-908-9946 or using the transcript tool on their website. Either method will give you your AGI so you don't have to guess with a $0.

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Zoe Papadakis

•8M

It doesn't connect to the IRS - it's more like an intelligent document analyzer. You upload your tax documents (like W-2s, 1099s, etc.) and it reads them, explains what each part means, and gives you personalized guidance based on your specific numbers. It's been especially helpful for figuring out which business expenses qualify for deductions. It's definitely not generic info. I asked it specific questions about my mileage deduction for side gig work, and it walked me through exactly what I needed to document and how to calculate it based on my situation. Much more personalized than those generic tax articles that just repeat the same IRS rules without telling you how they apply to your specific case.

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AstroAdventurer

•8M

Update on taxr.ai - I was skeptical in my earlier comment but decided to give it a try with my 1099-NEC situation. I'm actually impressed! It analyzed my forms and explained exactly which boxes affected my self-employment tax calculation (something I've always been confused about). It also flagged that I needed to file Schedule SE along with Schedule C, which I might have missed. The explanation of qualified business income deduction was clearer than anything I've read before. Definitely helped me understand my contractor income situation better than just blindly entering numbers into tax software. Still went with FreeTaxUSA for the actual filing (which does handle 1099-NEC for free), but used taxr.ai to understand what I was actually filing. Good combo for someone like me who's not tax-savvy.

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Mei Liu

•8M

If you're still having trouble getting your AGI from last year and the online transcript option isn't working, try Claimyr (https://claimyr.com). I was in exactly your situation last year - couldn't access my previous return and kept getting rejected because I guessed my AGI wrong. After spending HOURS trying to get through to the IRS phone lines with no luck, I found Claimyr. They got me connected to an actual IRS agent within about 20 minutes instead of the usual 2+ hour wait or "call volume too high" message. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c The IRS agent was able to verify my identity and give me my exact AGI over the phone. Solved my problem in one call after days of frustration.

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Mei Liu

•8M

They don't call for you - they use a system that navigates the IRS phone tree and holds your place in line. Then when they're about to reach an agent, they call you and connect you directly. You're the one who actually speaks with the IRS agent, not them. It works because they have technology that can stay on hold indefinitely while monitoring for an actual person to answer. Then they bridge you into the call at exactly the right moment. It's not against any rules - you're still the one talking to the IRS, they just handle the hold time so you don't have to sit by your phone for hours.

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Amara Chukwu

•8M

I was wrong about Claimyr in my skeptical comment above. After getting disconnected from the IRS FOUR TIMES trying to get my tax transcript information, I gave in and tried it. It actually works exactly as described. I got connected to an IRS representative in about a half hour, when I had previously spent 3+ hours trying and failing to reach someone. They called me when an agent was about to pick up, and I handled the conversation directly with the IRS person. Got my AGI issue sorted in minutes once I actually reached someone. So for OP's situation with the $0 AGI question - if you can't get your transcript online for whatever reason, this is definitely faster than the traditional method of calling and praying someone answers.

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Giovanni Conti

•8M

Yes, FreeTaxUSA handles all business expenses related to 1099-NEC income without charging extra. It walks you through Schedule C reporting step by step, covering everything from home office deductions to business supplies, mileage, insurance - all the standard self-employment deductions. Their interface for business expenses is actually more straightforward than TurboTax in my opinion. It presents clear categories and explains what qualifies for each deduction type. I deducted my home office, internet, phone, software subscriptions, and some equipment purchases last year with no issues.

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Fatima Al-Hashimi

•8M

Just a quick tip about the AGI issue - if you filed with Credit Karma last year and don't want to deal with Cash App, you can also enter $0 as your prior year AGI and check the box that says "I didn't file last year" even though you did. Some tax software allows this as a workaround when you can't access your prior AGI. If your return gets rejected because of AGI verification, then you'll need to get your proper AGI through the IRS transcript service or by calling them.

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