Can't file for free with two W-2s and a 1095-A?

February 28, 2023 9:32 AM

I have two jobs, so I have two W-2s. The IRS offers "free file" with partner sites, and from everything I have read on those pages, having two W-2s and a 1095-A (record of tax credit taken for Obamacare) should allow me to file for free. But somehow it never works?

I do not have any other thing that I have to do for taxes - I don't own property, I don't have kids, I have no savings or retirement funds, etc. Just the two W-2 forms and the 1095-A.

For the past two years, I have followed all of the instructions for "free file" to the letter, and whatever partner site I worked with would stop about 20 minutes in and say I have to upgrade to a paid filing program, and I could not file for free, because I have a 1095-A, and it ended up costing me over $100 to "free file" my taxes.

Can anyone offer any insight?

posted by tzikeh to Work & Money (10 answers total)

What is your combined income with those two W2s?
posted by Alensin at 9:51 AM on February 28, 2023

I filed with FreeTaxUSA with two W-2s, and their site says they support Form 1095-A.

This was my first time using FreeTaxUSA, but other people I know have been using and recommending it for years. Unlike other “free” tax software I’ve used, their free edition covers all federal forms, at all income levels. The only paid options are for state returns, live support, or amended returns.

They also offer free state returns if your AGI is below $41,000.
posted by mbrubeck at 10:02 AM on February 28, 2023 [4 favorites]

Looks like Cash App Taxes supports a 1095-A - honestly it's kind of a pain in the ass to use but it supports a lot of tax situations that are hard to take care of with other free tax programs.
posted by mskyle at 10:23 AM on February 28, 2023 [1 favorite]

The google seems to point to the fact that form 8962 is not covered under the free file program, and that is the one where you account for the advanced premium tax credits.

That said, I've been using the H&R Block Tax software for the last 16 years for various reasons. At no point have I paid more than $20 to file. The trick is to just use the "Basic" version that they offer and to always look for the discount coupon. Despite the description, I found that the basic version supports all of the forms and deductions included with the premium version, it just does not have the same level of "what to do next year" guidance that is often of questionable value. If you go to the H&R Block site, it lists "1099/Self Employed" as requiring the premium version. This is news to me as I have had a 1099-NEC on top of W2's, mortgage interest, and a few other complications over past decade and used the basic version to file my taxes each year and have had zero issues.

State tax filing is not included with the basic version but it is included with the next level up at $45. Depending on your state, you may have a direct free file option to avoid paying the prep folks extra. My state is rather easy to directly file online, but your mileage may vary.
posted by SegFaultCoreDump at 10:40 AM on February 28, 2023

The google seems to point to the fact that form 8962 is not covered under the free file program

But Form 8962 is listed on the IRS Free File page. When I search for IRS e-file providers, I am given a list of offices in my city that offer free filing.It might be worth it to make an appointment with one of these in your city and go in person to see what they say. Let them know upfront that you qualify for free filing. If you can't get in this year, try next year.
posted by soelo at 10:48 AM on February 28, 2023

Looks like Cash App Taxes supports a 1095-A - honestly it's kind of a pain in the ass to use but it supports a lot of tax situations that are hard to take care of with other free tax programs.

I want to disagree with this only insofar as I found Cash App Taxes to be quite easy to use and intuitive (you do need to have the app installed on your phone, I think, but you can fill out the forms on a desktop browser). I recommend it as a truly free option that won't try to up-charge you at all.
posted by kickingtheground at 1:11 PM on February 28, 2023 [1 favorite]

Best answer: I've used olt.com with situations of varying complexity over the past...7 years I think? Maybe longer. Almost exclusively self-employed, usually with multiple 1099s, sometimes Obamacare stuff to report (though I don't remember the specifics from when I did that), interest income, stock sales, and I've never had to pay anything to prepare or e-file federally. I have always happily paid the state e-file fee just to support them, though you can also prepare that for free and print it out to mail IIRC.
posted by tubedogg at 2:45 PM on February 28, 2023

Response by poster: Alensin: What is your combined income with those two W2s?

... I'm going to assume what you're actually asking me is "does your total income put you over the income limit that the IRS allows to free file" and the answer is no, my income is nowhere near the cut-off.

Suggestions are:

FreeTaxUSA
Cash App Taxes
OnLine Taxes

I will start with the first and see how it goes. Obviously I can't "try" all three (unless I keep getting a "you have to pay at this point" message) but I'll report back on what I get done. Thanks everyone!
posted by tzikeh at 10:59 AM on March 1, 2023

FYI Cash App // Credit Karma is "free" because it wants your data.
posted by oceano at 4:58 PM on March 1, 2023

Response by poster: Well, I went to OnLine Taxes, and it took for-fucking-ever, but I was able to file my federal income tax for free there, so thanks, tubedogg! Now I just have to figure out how to file my state taxes for free and I'm good.
posted by tzikeh at 4:11 PM on March 3, 2023 [1 favorite]