File Your Federal Tax Return for Free

Whether you hire a professional or use software, filing your taxes can be pricey. While some of the best tax software programs offer a free tier, there are typically severe limitations on who can use it. Most will only process simple returns with standard deductions.

If you’re self-employed, own rental properties or investments or have to itemize your deductions, you usually have to upgrade to a paid tier.

FreeTaxUSA stands out from the competition by offering free filing for most federal tax forms. while still guaranteeing users the maximum refund.

Below, CNBC Select reviews FreeTaxUSA’s key features, perks, pricing, and more.

FreeTaxUSA offers four self-filing options — basic, advanced, premium and self-employed – all of which are free for federal tax returns.

The basic level offers step-by-step online guidance for simple tax returns. The advanced tier is geared toward homeowners and filers with certain tax credits and deductions, such as the earned income credit, and a premium option is for filers with rental or investment income, or who sold property or a car.

There is also a self-employed tier for individuals who aren’t W-2 employees, like freelancers, contract workers and small business owners.

While automated guidance is offered in the self-filing options, the deluxe tier includes live help from tax pros and lets you jump to the front of the line if you have questions. Deluxe users can also file an unlimited number of tax amendments at no additional cost.

With the pro support upgrade, you can speak with a certified public accountant or enrolled agent over the phone or schedule virtual meetings and share your screen while getting help.

FreeTaxUSA’s biggest advantage over its competitors is that it doesn’t charge customers to file most federal tax returns. It also offers a maximum refund guarantee, which refunds any fees if you get a larger refund (or owe less taxes) using a different company.

FreeTaxUSA also provides a calculation accuracy guarantee and will reimburse any penalties and interest resulting from a calculation error.

There are also some paid add-ons, including an audit defense service that includes expert guidance for state and federal audits, as well as identity theft protection and debt relief consultations. You can also order a printed or professionally bound return.

All of FreeTaxUSA’s self-filing options are free for federal tax returns, but state returns cost $14.99.

FreeTaxUSA’s deluxe level costs $14.99 and the pro support version is $49.99. Unlimited amended returns, which is included with the paid tiers, is $15.98 if you use the free basic edition.

The audit defense service costs $19.99, while a mailed printed return is $7.97, and a professionally bound return is $15.99.

For $24.99, you can pay nothing upfront and have the cost of your order taken out of your refund.

Filers can create an account online to file their taxes through the FreeTaxUSA website. Unlike many of its competitors, FreeTaxUSA doesn’t offer a mobile app.

Information submitted through the FreeTaxUSA website is encrypted to ensure its security. However, you can further reinforce that protection by adding multi-factor authentication (MFA). In addition to coming up with a password, you can reinforce your log-in procedure by either having a PIN sent to you through text, voice call or email, or by having a one-time password sent to you through an authenticator app.

FreeTaxUSA is a great option for filing federal income taxes but it does charge for state returns and additional services like audit protection. Here are some other free filing options you might want to consider.

CashApp Taxes

CashApp Taxes is one of the only online tax offerings that doesn’t charge for either federal or state returns and that includes audit defense at no extra cost. There are no upgrades, making it easy to stick to the basics.

IRS Free File

Free File provides no-cost online tax preparation for federal tax returns and some state filings. The program is a partnership between the IRS and several top tax software companies and is available to filers with an adjusted gross income of $79,000 or less.

FreeTaxUSA has fairly bare-bones offerings, but the lack of fees to process tax forms that even other free services typically charge for is a big plus. And the $14.99 for state filing is still cheaper than many competitors charge.

Customer assistance is limited and you’ll have to pay for live chat or phone support. But if saving on filing your taxes is your priority, this is a very solid option.

If you want in-person assistance, consider H&R Block, which has more than 11,000 locations nationwide. You can even drop your paperwork off and pick it up when it’s done.

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