How to do free tax filing?
March 2, 2023 4:47 PM Subscribe
I've heard that Turbo Tax and the like make it next to impossible to file for free, even for those people who are entitled to free filing. What is the proper way to force them to do the free filing?
I need to help my 19yo file taxes this year. (My tax guy looked over the kid's paperwork and said, "Yep, if he files he'll get $100 back, but if I do it for you I have to charge you more than that, so you should do it yourself.")
This should be super simple -- he has a few W-2s, income that's probably under $3k, and will check yes on the box that says something like "Are you claimed as a dependent by someone else?" That's basically it.
So what's the easiest and free way to file this?
I need to help my 19yo file taxes this year. (My tax guy looked over the kid's paperwork and said, "Yep, if he files he'll get $100 back, but if I do it for you I have to charge you more than that, so you should do it yourself.")
This should be super simple -- he has a few W-2s, income that's probably under $3k, and will check yes on the box that says something like "Are you claimed as a dependent by someone else?" That's basically it.
So what's the easiest and free way to file this?
I’ve used FreeTaxUSA for years, have recommended it to all of my friends, and now they all use it too. There is a small fee for state returns. https://www.freetaxusa.com/
posted by FencingGal at 5:00 PM on March 2, 2023 [12 favorites]
posted by FencingGal at 5:00 PM on March 2, 2023 [12 favorites]
from personal experience, having a 1099-G (Unemployment or worksharing payments) will make you ineligible for TurboTax's free product. I think Turbo Tax Free only allows 1 W2.
posted by ApathyGirl at 5:00 PM on March 2, 2023
posted by ApathyGirl at 5:00 PM on March 2, 2023
This is why I still do my taxes on paper.
posted by heatherlogan at 5:13 PM on March 2, 2023 [1 favorite]
posted by heatherlogan at 5:13 PM on March 2, 2023 [1 favorite]
H&R Block does it for free. They ask you a million times if you want to upgrade, but it can be done. I just did my roommate’s taxes for free.
posted by Melismata at 5:17 PM on March 2, 2023 [1 favorite]
posted by Melismata at 5:17 PM on March 2, 2023 [1 favorite]
Seconding FreeTaxUSA. Been using it for years, no issues and easy to use.
posted by cozenedindigo at 5:24 PM on March 2, 2023
posted by cozenedindigo at 5:24 PM on March 2, 2023
So, I guess filing by paper is out of the question? I know IT people who always do their taxes (and other important things on paper only) It is free, if you just drop it off in the box, in the building.
posted by amfgf at 5:44 PM on March 2, 2023
posted by amfgf at 5:44 PM on March 2, 2023
Note that on hydra77's link there are 2 options - "Guided Tax Preparation" which sends you to "partner sites" like TurboTax & H&R Block & FreeTaxUSA and a bunch of others; and "fillable forms", which are like doing your taxes yourself on paper, except you're filling out online pdf's (which you can save and print out, if you'd like.)
Fillable forms is 100% free and will handle all sorts of combinations of multiple W2s and 1099s and all sorts of other stuff. I have used this for years and years with multiple varied income streams with no problems. (Note that these will NOT cover state or local taxes, but it's quite likely your state & locality will have their own free online filing system.)
The first option, the guided tax preparation, is the one that people are talking about when they say, "next to impossible to file for free, even for those people who are entitled to free filing." Because these for profit tax preparers often have strict limitations on the tax work they'll put in for free - like, 2 W-2's is OK, but a third W2, or a 1099, costs extra. Or filing your state forms costs extra. Or deductions on the house you live in are fine, but it costs extra for the house you inherited from Uncle Jim that you're renting out. So on and so forth. And they don't tell you that until you're partway through the whole process, so a lot of people will just pay the extra because they don't want to start over with another tax preparer. And they will try HARD to upsell you on other services even if you're able to file for free in their system.
So; 100% guaranteed free = Free file fillable forms, but you have to do some of the work yourself. Possibly free, depending on the deal each tax preparer has made with the IRS = guided tax preparation. (Who you can't force to do anything.)
posted by soundguy99 at 5:47 PM on March 2, 2023 [3 favorites]
Fillable forms is 100% free and will handle all sorts of combinations of multiple W2s and 1099s and all sorts of other stuff. I have used this for years and years with multiple varied income streams with no problems. (Note that these will NOT cover state or local taxes, but it's quite likely your state & locality will have their own free online filing system.)
The first option, the guided tax preparation, is the one that people are talking about when they say, "next to impossible to file for free, even for those people who are entitled to free filing." Because these for profit tax preparers often have strict limitations on the tax work they'll put in for free - like, 2 W-2's is OK, but a third W2, or a 1099, costs extra. Or filing your state forms costs extra. Or deductions on the house you live in are fine, but it costs extra for the house you inherited from Uncle Jim that you're renting out. So on and so forth. And they don't tell you that until you're partway through the whole process, so a lot of people will just pay the extra because they don't want to start over with another tax preparer. And they will try HARD to upsell you on other services even if you're able to file for free in their system.
So; 100% guaranteed free = Free file fillable forms, but you have to do some of the work yourself. Possibly free, depending on the deal each tax preparer has made with the IRS = guided tax preparation. (Who you can't force to do anything.)
posted by soundguy99 at 5:47 PM on March 2, 2023 [3 favorites]
I might as well mention Excel 1040, which will do the math for you. You still have to print it out and mail it in. And you're still stuck doing your own math on the state taxes.
posted by polecat at 6:18 PM on March 2, 2023 [3 favorites]
posted by polecat at 6:18 PM on March 2, 2023 [3 favorites]
The easiest way is to do it “on paper.” That is, download the forms and instructions from irs.gov, fill in the pdfs on your computer, print, sign, mail to the irs. It’s easy.
posted by shadygrove at 7:10 PM on March 2, 2023
posted by shadygrove at 7:10 PM on March 2, 2023
If they are really simple (W2's only), then I recommend having them snag a paper copy of the 1040-EZ and doing it by hand for the first year or two.
My kid is in the exact same scenario. 19 years old, basic W2 only, and will get money back if they file. They are going to learn how to download the form, fill it out, and then mail it in this year. It is not as difficult as it seems. It is basically accounting by number and makes assembling IKEA bookshelves look easy in comparison once you have somebody walk through it. The local library usually has a stack of forms and the instruction booklets for free if you want to go really cheap. Just use two stamps to send it in if you have more than 3 or 4 sheets.
I only switched to using H&R Block ($19.99 each year, even for the more complicated tax returns despite their attempts to upsell to premium for 1099 folks) because it was faster and I'd get things processed faster if I e-filed.
posted by SegFaultCoreDump at 7:13 PM on March 2, 2023 [1 favorite]
My kid is in the exact same scenario. 19 years old, basic W2 only, and will get money back if they file. They are going to learn how to download the form, fill it out, and then mail it in this year. It is not as difficult as it seems. It is basically accounting by number and makes assembling IKEA bookshelves look easy in comparison once you have somebody walk through it. The local library usually has a stack of forms and the instruction booklets for free if you want to go really cheap. Just use two stamps to send it in if you have more than 3 or 4 sheets.
I only switched to using H&R Block ($19.99 each year, even for the more complicated tax returns despite their attempts to upsell to premium for 1099 folks) because it was faster and I'd get things processed faster if I e-filed.
posted by SegFaultCoreDump at 7:13 PM on March 2, 2023 [1 favorite]
I used Cash App Taxes (formerly Credit Karma) last year. Both federal and state were free. We have two W2s, a 1099, divided income and other assorted nonsense. It’s very painless. Review here.
posted by jabes at 7:25 PM on March 2, 2023 [2 favorites]
posted by jabes at 7:25 PM on March 2, 2023 [2 favorites]
I use the Free File Fillable Forms which soundguy99 mentioned above for my federal taxes and do my state taxes by hand on paper. It's just a little more work than something like TurboTax, it's free (except for a stamp, envelope, and printing costs for the state taxes), and I get to avoid supporting the tax prep industry, which for me is a win. And the fillable forms will never try to trick you into buying the premium version, because there isn't one.
you're filling out online pdf's (which you can save and print out, if you'd like.)
You should absolutely do this if you are using this program. When you come back to do this again next year, the identity verification to allow you to file electronically will involve your adjusted gross income from this year. And the fillable forms program deletes your account automatically in the fall of the same year, so don't wait around. Save a PDF as soon as your return is accepted.
posted by egregious theorem at 8:46 PM on March 2, 2023 [1 favorite]
you're filling out online pdf's (which you can save and print out, if you'd like.)
You should absolutely do this if you are using this program. When you come back to do this again next year, the identity verification to allow you to file electronically will involve your adjusted gross income from this year. And the fillable forms program deletes your account automatically in the fall of the same year, so don't wait around. Save a PDF as soon as your return is accepted.
posted by egregious theorem at 8:46 PM on March 2, 2023 [1 favorite]
Best answer: When using TurboTax, just decline to upgrade to the paid offering. It's easy. They do not make it difficult. I've done it for the past several years. My state return was free efile also.
posted by LoveHam at 4:23 AM on March 3, 2023
posted by LoveHam at 4:23 AM on March 3, 2023
I also recommend the CashApp/CreditKarma free tax filing. My taxes have always been a little complicated due to self employment and the pool of free filing options OK with my freelance stuff has shrunk every year (I think I did my 2017 taxes on paper because of it), but the past two years I used this successfully, no problem. Although I believe there was a small fee for filing my state taxes, though.
posted by AzraelBrown at 6:27 AM on March 3, 2023
posted by AzraelBrown at 6:27 AM on March 3, 2023
There is no 1040 EZ anymore and many of the sources for IRS forms and instructions no longer ship out gobs of paper. They expect you to print out the forms yourself. Having them learn how to do this can be valuable if it works for them. If you don't have printing options at home, libraries are good for that.
I volunteer to do taxes with AARP and they have an option for you to do it yourself. That page will send you to OnLine Taxes. I have not used the site myself but I have seen it recommended on AskMe before.
posted by soelo at 9:19 AM on March 3, 2023
I volunteer to do taxes with AARP and they have an option for you to do it yourself. That page will send you to OnLine Taxes. I have not used the site myself but I have seen it recommended on AskMe before.
posted by soelo at 9:19 AM on March 3, 2023
I use turbotax for myself and filed my 19 year old kid's taxes last year with one of the IRS Free File guided tax prep options linked above, and yes, it was free. Just read the descriptions to see if your kid's situation applies.
Also, I did have him sit with me while I filled out the forms, and set up the account and password, and used his email address, as part of my "Mom helps you learn how to be an adult" thing.
posted by bluedaisy at 10:17 AM on March 3, 2023
Also, I did have him sit with me while I filled out the forms, and set up the account and password, and used his email address, as part of my "Mom helps you learn how to be an adult" thing.
posted by bluedaisy at 10:17 AM on March 3, 2023
Propublica has a nice article that lays out the options for free file, but they are pretty much the same as what is listed here.
posted by rockindata at 11:22 AM on March 3, 2023 [1 favorite]
posted by rockindata at 11:22 AM on March 3, 2023 [1 favorite]
Response by poster: Just did it via Turbo Tax. I ended up doubting if it was going to be free, but it seemed like the simplest option because my kid had multiple W2s from two states, and a couple of 1099s, and I for sure did not want to have to do any research on my own + track down state forms for a state I do not live in.
And actually, it did turn out to be free, and could not have been simpler. Quite easy to turn down the "upgrade" to the paid version, and took about 30 minutes. I'm actually going to say I recommend it.
posted by BlahLaLa at 2:31 PM on March 22, 2023
And actually, it did turn out to be free, and could not have been simpler. Quite easy to turn down the "upgrade" to the paid version, and took about 30 minutes. I'm actually going to say I recommend it.
posted by BlahLaLa at 2:31 PM on March 22, 2023
Response by poster: Final update to say it was still free, but there was an intractable problem in the section where you had to list your gross income from last year (NA; kid didn't file last year) and the IRS rejected his electronic federal return, which in turn triggered rejections of the state returns. So we have to file on paper, which is annoying.
posted by BlahLaLa at 3:35 PM on March 22, 2023
posted by BlahLaLa at 3:35 PM on March 22, 2023
This thread is closed to new comments.
Edited to add that it may lead you back to Turbo Tax, but it also has other software options for you.
posted by hydra77 at 4:49 PM on March 2, 2023 [4 favorites]