this post was submitted on 30 Jan 2024
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For your simple[r] tax needs: https://directfile.irs.gov

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[–] [email protected] 70 points 9 months ago (7 children)

If you aren't able to use this new system, a good second option is freetaxusa.com. Free for most filings and dirt cheap for more complex stuff. Also, they are easier to use than TurboTax.

[–] [email protected] 27 points 9 months ago

It would probably have better adoption if it didn't have such a scammy-sounding name.

[–] [email protected] 16 points 9 months ago (3 children)

A better idea is to go to irs.gov and use their free file wizard to see which service is free for you. I used 1040.com this year. Last year I used freetaxusa.com, but this year that would not have been free for me due to my change in income. Which service is free depends on your state, income, and income complexity.

[–] [email protected] 11 points 9 months ago* (last edited 9 months ago) (2 children)

My problem with IRS.gov is they have a history of sending users to sites owned by Intuit. These sites would claim to be free, but would then trick the user into a paid pathway and guide them to an expensive paid checkout. I haven't been back to IRS.gov since experiencing that.

I learned later that Intuit (who owns Turbotax) had spent millions lobbying to get that to happen. Since the IRS can be lobbied by corporations to trick users like that, I just don't trust IRS.gov to be honest.

[–] [email protected] 5 points 9 months ago

Intuit recently got slapped by a different government agency. I doubt that they will get that privelage again for a while.

[–] [email protected] 5 points 9 months ago (1 children)

TurboTax discontinued their participation in the IRS Free File program a few years back, IIRC. I don't think they'll be listed on the IRS's Free File website.

[–] [email protected] 1 points 9 months ago* (last edited 9 months ago) (1 children)

Corporations are able to buy their way into an IRS endorsement. There is no reason to trust their links just because a singularly egregious deception has been removed from their site.

The IRS presented them to the public as a "free option" for years, knowing they were not free. The IRS lied for profit. I have no reason at all to ever trust their suggestions.

It would be unreasonable for me to return to the same entity that lied to me and ask for more advice.

[–] [email protected] 0 points 9 months ago (1 children)

The IRS presented them to the public as a "free option" for years, knowing they were not free.

The only time they're not free is if you don't meet the requirements for the Free File Program or you try to use one of TurboTax's services that aren't part of the Free File Program.

I actually used TurboTax for years before they left the Free File Program (supposedly because it was too restrictive in what they could charge for), and I never had to pay a cent. I've since moved on to other tax sites that are still part of the Free File Program, and I've still never had to pay anything.

[–] [email protected] 1 points 9 months ago* (last edited 9 months ago) (1 children)

Most people who tried to use the program were deceived by Intuit. Intuit settled numerous lawsuits for their lies. Their expensive settlement is why Intuit left the program. Here's a relevant exerpt from an Ars Technica article on the topic:

Meanwhile, the federal government and US states have taken action against Intuit for its allegedly deceptive promises of "free" tax filing to lower-income taxpayers. In a May 2022 settlement with all 50 US states and the District of Columbia, Intuit agreed to pay $141 million in restitution to millions of consumers.

Intuit also agreed in the settlement to stop its "free, free, free" ad campaign. The firm was accused of steering customers away from the IRS Free File program that is free to 70 percent of taxpayers while using misleading ads to promote a separate "freemium" TurboTax product that isn't actually free for most people.

Separately, the Federal Trade Commission's chief administrative law judge ruled last month that Intuit violated US law with deceptive advertising and should be forced to stop promoting TurboTax as "free" unless all conditions imposed on the free offer are immediately and conspicuously displayed to consumers.

[–] [email protected] 0 points 9 months ago* (last edited 9 months ago) (1 children)

I would argue that the IRS wasn't at fault here, though. Like the article said, people were steered away from the Free File Program, so people having to pay wasn't a fault of the Free File Program but rather a fault of Intuit's deceptive practices of marketing their alternative freemium versions of their software.

[–] [email protected] 1 points 9 months ago* (last edited 9 months ago)

The IRS was very aware of it as it had been going on for years. There were numerous complaints and lawsuits that the IRS were made aware of as they happened.

Intuit spent millions annually lobbying anyone who would accept their money and were permitted to remain part of the free-file program for years with their famously deceptive software.

The IRS and lawmakers have all been complicit in allowing this to happen for an extended period of time.

Just curious, why are you defending Intuit or the IRS? It seems an odd position to take. I've never encountered someone with this position before.

[–] [email protected] 0 points 9 months ago

Check out Tax Hawk, it might be a good option for you this year

[–] [email protected] 12 points 9 months ago (1 children)

For a couple of years CreditKarma was the best free solution. Then Intuit bought them.

[–] [email protected] 7 points 9 months ago (1 children)

Intuit divested the tax product in that sale, which was bought by Block (FKA Square) and is part of their Cash App brand. So it’s still around and still not Intuit.

[–] [email protected] 1 points 9 months ago (1 children)

Last I checked you couldn't use the cash app version without downloading their app.

[–] [email protected] 2 points 9 months ago

The login process for it is absolutely terrible and requires so much jumping back and forth between the dumb app and my computer, which is where I want to actually do my taxes.

[–] [email protected] 7 points 9 months ago (1 children)

that's who I use! $15 to file state, free federal; I mean that's pretty close to 'free' compared to Turbo/Inuit pushing you close to $100 after all the BS. And freetaxusa keeps my info for subsequent years, etc.

[–] [email protected] 2 points 9 months ago (1 children)

that's who I use! $15 to file state

I'd suggest using the IRS's Free File Program wizard to find a tax program that'll do your state taxes for free. You'd save a little money that way. Most tax programs will keep your info for multiple years after your first time using them, too.

[–] [email protected] 2 points 9 months ago

thanks, but I make too much according to that, which is something else people seem to skip over whenever these "just do it for free!!!!" posts come up. You have to make below $80k (AGI) even when married.

But, again, even if I didn't, $15 seems pretty fair to me, to avoid having to hunt for the magical free method.

[–] [email protected] 5 points 9 months ago

I've been using this for years and have been happy with the service. If I have to pay for something at least I'm not giving money to TurboTax.

[–] [email protected] 2 points 9 months ago

Also, check with your state tax site, as sometimes they have free state filing options.

[–] [email protected] 0 points 9 months ago (1 children)

I used it, but then one year it was telling me I owed money. When I double checked on TurboTax, it was the opposite. I went with Turbo Tax. I’ve been wary of FreeTaxUSA since…

[–] [email protected] 6 points 9 months ago

Be careful. If software miscalculates in your favor and the IRS figures it out, you're gonna have a bad time.