US taxes - recommendations for turbotax alternative

March 2, 2021 1:42 PM

...or a recommendation to stay. I've used deluxe turbotax the last few years, but after learning about the lobby to make filing taxes worse because capitalism, and eff that noise. I am interested in hearing about your experience with options like CreditKarma, 1040.com, H&R block free online, etc. Or, if you've switched from turbotax in the past and are now switching back, I'd like to hear about that too.

Some background:
* I don't own real estate, a boat, anything big ticket
* I don't have any dependents and I am not a dependent
* I did pay student loans but did not attend school last year
* Due to my income, I do not qualify for free filing with the IRS or MyFreeTaxes

Thanks!

posted by snerson to Computers & Internet (33 answers total)

I've been using TaxAct for many years now and I have always had a great experience with it. I've recommended it to many of my friends.
posted by erst at 1:44 PM on March 2, 2021 [7 favorites]

I've been using Free Tax USA. Free, no frills.
posted by cozenedindigo at 1:45 PM on March 2, 2021 [4 favorites]

I have also used Free Tax USA for the past two years of filing, after years of paying way too much for the TurboTax Small Business package. Free Tax USA is quite simple to use. The interface isn't that different from TurboTax and it didn't take much more time at all to walk through everything the first year I used it. And I found it even quicker and easier in year two than it was in year one! There's a small charge if you want them to file your state taxes electronically, but it's less than $20 and totally worth it to save the hassle, especially compared to what TurboTax charged me overall!
posted by merriment at 1:54 PM on March 2, 2021 [3 favorites]

Been using HR Block free file since, heck, probably 2000. Been happy enough with it to not bother switching.
posted by General Malaise at 2:04 PM on March 2, 2021

I’ve used CreditKarma for the past few years and it’s a little clunky but it works. I like it because it’s one of the few that are still free for my income situation (even my state return) and I’m kind of cheap.
posted by mskyle at 2:06 PM on March 2, 2021 [2 favorites]

I've used OLT for over a decade.
posted by aspersioncast at 2:10 PM on March 2, 2021 [2 favorites]

I used TaxAct for years for both my own taxes and helping my friends do theirs. The only reason I don't anymore is that my taxes are far more complicated now that I own a couple of businesses. It's easy to use and I still recommend it.
posted by bedhead at 2:13 PM on March 2, 2021

CreditKarma. Has worked for us for the past few years and is free.
posted by wwax at 2:22 PM on March 2, 2021 [2 favorites]

My situation is probably just about as complicated as yours, maybe a little more so. I usually wind up with a decent handful of schedules appended to my 1040, and have multiple state returns.

I'd like to plug actually doing your taxes by hand =)

Then, when you've figured out what the numbers should be, file online with "Free File Fillable Forms" (IRS link).

The IRS's documentation about the 1040 is actually very straightforward to follow. To find the instructions, I find it easiest to just google IRS + name of form/schedule + 2021. I can do my taxes in an evening, and I really like understanding what the rules and formulas are, rather than trusting that I've answered TurboTax's questions correctly. I started doing this years ago when I couldn't get TurboTax to handle my graduate fellowship correctly, and continued because there's no way in hell I'm going to pay a company to do my taxes after they've lobbied congress to keep it unnecessarily complicated. For extra eff em energy, you used to be able to get all the way to being shown your amount due without paying ... so my first time, I used TurboTax to check my work, but then didn't give them any money.
posted by Metasyntactic at 2:23 PM on March 2, 2021 [9 favorites]

I know nothing specific about CreditKarma (beyond some nice acquaintances who work there), but it was purchased by Intuit, so if your goal is to stay totally clear of the Intuit lobby that’s not going to help you. On the other hand, I’d be dubious that any major US accountancy firm is particularly clean about all this (e.g H&R Block has also been accused of hiding access to its free system.) Depending on how much you want to distance yourself from these practices, you will need to do some homework.
posted by Going To Maine at 2:36 PM on March 2, 2021 [1 favorite]

Seconding OLT. This was my first year using that one (formerly used turbo tax then H&M’s block). Good product.
posted by one4themoment at 2:40 PM on March 2, 2021 [1 favorite]

I used CreditKarma last year because it was free when everyone else wanted over $100, and it worked fine. In past years I've used TaxAct because it was the cheapest, maybe it's a bad idea but every year it seems I need to change tax preparation software due to cost now that I've exceeded the free file income limit. Both were fine. I have a lot of 1099-MISC income if that affects anything.
posted by AzraelBrown at 2:43 PM on March 2, 2021

Also, a slight derail but on March 6 there’s an online MeFi meetup for doing taxes with friends if you’d like a community-driven approach
posted by Going To Maine at 2:44 PM on March 2, 2021 [4 favorites]

I switched from always using TaxAct, then to H&R Block for one year, then tried a local CPA. At first I thought using a CPA might be a waste of money, but it has been such a great experience that despite the somewhat higher cost I plan to use them from now on. And I like using a local business instead of some corporate thing.
posted by demonic winged headgear at 2:57 PM on March 2, 2021

I've used FreeTaxUSA for years & am quite happy with them.
posted by belladonna at 3:18 PM on March 2, 2021

I've used Tax Slayer for probably 7-10 years now without a problem.
posted by COD at 3:37 PM on March 2, 2021 [1 favorite]

Strong second for the free fillable forms (which you can use if your income is over $72k) - if you're a W2 employee without the complications of real estate & dependents & capital gains deductions and adjustments, there's really not much to doing your taxes. Before the 2017 simplification/consolidation of forms, I would usually file the 1040EZ, which took like an hour. Some years I make a little extra as a freelancer, which meant I had to fill out like 10 lines of the 1040 full version and add a couple additional short schedules ("forms" in the real world.)

(A big part of the "lobby to make filing taxes worse because capitalism" is the part where tax preparer companies've got people convinced that doing your taxes is this insanely complex thing that cannot possibly be done by the average citizen. If you're a wage slave with no real assets, it's probably not.)
posted by soundguy99 at 3:41 PM on March 2, 2021 [3 favorites]

Loved Free Tax USA and have recommended it to many friends. When I rented a room in my house, it was too tricky for me to figure it out with them, but as soon as my situation is simpler again, I’ll go back.
posted by FencingGal at 4:10 PM on March 2, 2021

We use paper. Way less confusing than the online systems.
posted by aniola at 4:38 PM on March 2, 2021 [1 favorite]

I also have been using TaxAct.
posted by kathrynm at 4:44 PM on March 2, 2021

I had been a TurboTax Deluxe user up until last year. Last year I tried FreeTaxUSA, but I also filled out TurboTax's form online for comparison. My tax refund came out the same in both applications, so I felt comfortable filing using FreeTaxUSA last year and will do so again this year.
posted by Seboshin at 4:50 PM on March 2, 2021

We’ve used HR Block (the app) for years and like it well enough.
posted by Thorzdad at 4:58 PM on March 2, 2021

Another vote for FreeTaxUSA. I have used nearly all the systems people have mentioned in this thread, except TaxSlayer, and find FreeTaxUSA the cleanest (and free-est).
posted by basalganglia at 5:37 PM on March 2, 2021

I use Free Tax USA as well, and my taxes are complicated, and they work for me, so I imagine with straight forward taxes they would be super easy. I have used them for 7 years, and have no complaints.
posted by momochan at 6:37 PM on March 2, 2021

Another vote for TaxAct, I've been using it for the past 10 years and have liked it a lot and still do (though they have become really up-salesy lately).
posted by starpoint at 7:54 PM on March 2, 2021

I used Credit Karma for FY2019 and between its interface and my ignorance, together we failed to file the 1099-A health insurance form and it ended up costing me an additional $800 once the IRS finally got in touch with me this past Autumn.

It didn't cost Credit Karma anything.
posted by glonous keming at 8:42 PM on March 2, 2021 [1 favorite]

H&R Block. I used them for at least 15 years under this name and a prior name. It's OK, but not so good that I didn't read reviews to see what other person liked. There are some minor usability issues that never seem to get fixed. Also a sequence problem that caused me to have to go back and erase stuff when I caught on.

I had one issue where the CPA who sent a K-1 called for an obscure schedule not included in the program, and the program did not detect the need to file it. Most of the time it handles K-1s just fine.

The feature to download data from my broker is a lifesaver, but its pretty much impossible to check for accuracy since my broker statements and the IRS schedules are organized differently.

The program for my state (CT) return is perfunctory, and the price they want to efile is way high so we print and mail it.
posted by SemiSalt at 5:21 AM on March 3, 2021

Another vote here for Freetax USA. I am a resident alien who had no clues about American taxes and it was so smooth using them.
posted by Webbster at 6:48 AM on March 3, 2021

Open Tax Solver is an open-source filing 'program' that basically fills in forms and makes it easy for you to print out and mail in. Not for everyone, but it might be your thing.
posted by pseudophile at 9:01 AM on March 3, 2021 [1 favorite]

Since CreditKarma is owned by Intuit, who owns TurboTax, I wouldn't suggest that option if you are doing this for political reasons.

However, all the tax prep providers are in on the "we want the government to pay us to prepare your 1040EZ, and not for the government to prepare it themselves" lobbying. That's how the free stuff works. The Feds write the check instead of you, and it's free. So even if the prep companies aren't directly putting their lobbying money into the effort, they are benefiting from it.
posted by sideshow at 4:47 PM on March 3, 2021 [2 favorites]

I've been using Glen Reeve's free Excel spreadsheet since 2007. The spreadsheet is cleverly formatted to look just like the IRS forms, so when you're done filling out the spreadsheet, you just print it and mail it in. For the state taxes I download the PDF files from the Oregon Dept of Revenue, fill 'em out, print, and mail in.
posted by polecat at 7:49 PM on March 3, 2021 [2 favorites]

Thanks to the recommendations here I just used Free Tax USA to file my taxes—it’s just as easy as TurboTax but it only cost 12.95 and that was to e-file my CA tax return! You might have to pay a bit more to file the federal return if you make more money than I do, but I think not much.
posted by exceptinsects at 9:10 PM on March 3, 2021 [1 favorite]

Free Tax USA is amazing. I used it and have a high income, have some complications (cap gains, freelancer income, etc) and gave me same results as Turbotax. $12.95 for Fed and State. Thanks!!
posted by sandmanwv at 1:14 PM on March 19, 2021