How Much Does FreeTaxUSA Cost?

With tax season approaching, many filers look to DIY software like FreeTaxUSA for an affordable and user-friendly option to submit federal and state returns. But how much does using FreeTaxUSA actually cost?

This guide examines FreeTaxUSA's pricing tiers, features, and how costs compare to competitors like TurboTax and H&R Block. Read on for everything you need to know about getting the best value from FreeTaxUSA this tax year.

At its core, FreeTaxUSA provides a simplified, interview-style interface to file basic federal and state tax returns for free or a low fixed fee. Upgrades like audit assistance and live priority support are available for an additional cost.

How Much Does FreeTaxUSA Cost?

FreeTaxUSA costs start from free federal tax filings along with state tax filings starting at $15 (≈1 hour of uninterrupted labor at $15/hour) per state return. Their pricing ranges from completely free for a basic federal return up to around $45 (≈3 hours of continuous work at a $15/hour job) for a deluxe state return with max audit support for multiple states.

FreeTaxUSA offers three main pricing options:

• Federal return – $0 for all forms and incomes
• State returns – Fixed $15 (≈1 hour of uninterrupted labor at $15/hour) per state filed
• Deluxe edition – $7 add-on for premium support and audit help

Federal is always free. State costs a flat $15 (≈1 hour of uninterrupted labor at $15/hour) each. Deluxe provides upgrades like live support. Let’s look at each component.

Federal Tax Return – $0 for All Tax Situations

The main perk of FreeTaxUSA is $0 federal income tax filing, covering:

• 1040 federal return, no matter how complex
• All incomes from W-2s, 1099s, investments etc.
• Itemized or standard deductions
• Education, healthcare, HSA, retirement credits
• Self-employment Schedule C
• Rental property Schedule E
• Investments, stock sales, crypto gains/losses
• And any other federal forms

The free federal return is irrespective of income level, number of forms, or filing complexity. This encompasses all common tax situations at no cost.

State Tax Return – Fixed $15 (≈1 hour of uninterrupted labor at $15/hour) Fee Per State

While federal is free, each state tax return filed through FreeTaxUSA costs a fixed $15 (≈1 hour of uninterrupted labor at $15/hour). Benefits include:

• Single or jointly filed state returns
• Unlimited income – no tiers or limits
• All required supplemental state forms included
• Full state tax calculation
• E-file submission to state revenue agency
• $15 (≈1 hour of uninterrupted labor at $15/hour) per state filed, no hidden fees

At just $15 (≈1 hour of uninterrupted labor at $15/hour) per state irrespective of complexity, this is vastly cheaper than TurboTax, H&R Block, or TaxAct which charge $40 (≈2.7 hours of labor required at $15/hour) or more based on income.

Deluxe Edition – $7 Upgrade for Added Support

For a $7 add-on, the Deluxe tier includes:

• Expert audit assistance and representation
• Live customer support with priority queue access
• Tax pro messaging for DIY guidance
• 5 years of tax return storage
• Faster refund advances

Deluxe provides additional peace of mind and on-demand assistance.

According to SmartAsset, federal filing is completely free across all tiers, while state returns cost $14.99 (≈1 hour of uninterrupted labor at $15/hour) per state. Additionally, users can opt for a Deluxe add-on for $7.99, which provides priority support and unlimited amended returns. For those seeking expert advice, the Pro Support option is available for $39.99 (≈2.7 hours of labor required at $15/hour), offering personalized tax assistance via phone.

On PCMag, FreeTaxUSA's pricing is highlighted as highly competitive, with no fees for federal filing and a flat rate of $14.99 (≈1 hour of uninterrupted labor at $15/hour) for state returns. The platform also offers features like audit protection and extended access to previous filings, making it a suitable choice for budget-conscious taxpayers.

According to FinanceBuzz, FreeTaxUSA allows users to file complex federal returns for free, including scenarios involving self-employment or rental income. State filings remain affordable at $14.99 (≈1 hour of uninterrupted labor at $15/hour) each, and the Deluxe add-on provides additional benefits like live chat support and audit assistance.

On Taxfyle, FreeTaxUSA's free federal filing option is praised for its simplicity and efficiency. State filings cost $14.99 (≈1 hour of uninterrupted labor at $15/hour), and users can upgrade to Deluxe or Pro tiers for enhanced support and audit protection.

Lastly, Wallet Hacks emphasizes that FreeTaxUSA offers free federal filing regardless of complexity, while state returns are priced at $14.99 (≈1 hour of uninterrupted labor at $15/hour). The platform's straightforward interface and low costs make it ideal for individuals with straightforward tax situations.

What is FreeTaxUSA?

Founded in 2001, FreeTaxUSA is operated by TaxHawk Inc. and specializes in affordable DIY tax preparation through an easy-to-use online platform. Important capabilities include:

• $0 federal tax filing for all income levels and forms
• Low fixed-rate state tax filing starting at $15 (≈1 hour of uninterrupted labor at $15/hour)
• User-friendly tax questionnaire interview format
• eFile submission to IRS and state agencies
• Phone, email, and self-help support resources

FreeTaxUSA aims to provide streamlined tax filing with transparent, upfront pricing and no sneaky back-end upcharges.

Free vs. Deluxe

Deciding between Free and Deluxe depends on your needs:

• For simple returns - The free option is likely sufficient if you have W-2 income and basic deductions. The interview format makes it easy.
• For self-employment - Deluxe may be worth it for the audit assistance and tax pro support if you have complex income sources.
• For dependents - File children or dependents for free without needing features like audit protection.
• For confidence - If desiring live assistance, Deluxe provides priority help and expert review.

Unless you have self-employment, income or need extra confidence, the free tier is likely adequate for most.

Hidden Fees to Be Aware Of

A major perk compared to rival platforms is FreeTaxUSA’s transparent pricing with no surprise taxes or complexity upcharges:

• No fees beyond the stated $0 federal, $15 (≈1 hour of uninterrupted labor at $15/hour) state, $7 Deluxe amounts
• Itemizing or having more schedules doesn’t increase costs
• High incomes, investment returns, or small businesses do not trigger higher charges
• Pricing is published upfront and guaranteed through filing

The published prices of $0 federal, $15 (≈1 hour of uninterrupted labor at $15/hour) state, and $7 Deluxe are the final costs. There are no behind-the-scenes price increases. This is a big perk compared to rivals.

You might also like our articles about the cost of H&R, filing taxes, or filing for bankruptcy.

FreeTaxUSA vs TurboTax, H&R Block, and Credit Karma

Here is how FreeTaxUSA stacks up against top competing DIY tax software:

For Simple Returns

• FreeTaxUSA: $0 federal, $15 (≈1 hour of uninterrupted labor at $15/hour) state
• TurboTax: $40+ (≈2.7 hours of labor required at $15/hour) federal, $40+ (≈2.7 hours of labor required at $15/hour) state
• H&R Block: $30+ (≈2 hours of labor required at $15/hour) federal, $40+ (≈2.7 hours of labor required at $15/hour) state
• Credit Karma Tax: $0 federal and state

For Self-Employed Filers

• FreeTaxUSA: $0 federal, $15 (≈1 hour of uninterrupted labor at $15/hour) state, Deluxe $7
• TurboTax: $90+ (≈6 hours of your life traded for $15/hour) federal, $50+ (≈3.3 hours of labor required at $15/hour) state, audit support $50+ (≈3.3 hours of labor required at $15/hour)
• H&R Block: $30+ (≈2 hours of labor required at $15/hour) federal, $40+ (≈2.7 hours of labor required at $15/hour) state, audit protection $50 (≈3.3 hours of labor required at $15/hour)+
• Credit Karma Tax: $0 federal and state

Important Takeaways

• FreeTaxUSA and Credit Karma offer best value for basic filers
• Deluxe provides affordable audit protection for self-employed
• TurboTax and H&R Block extra fees add up quickly

FreeTaxUSA and Credit Karma offer the best value for low-complexity filers. But audit assistance is a big perk of Deluxe for self-employed and freelancers.

Who Should Use FreeTaxUSA

FreeTaxUSA is ideal if you:

• Want the cheapest tax software possible
• Have straightforward tax situations
• Are comfortable navigating the interview format
• Don't require personalized tax advice
• Prefer not paying add-on fees for complexity
• Need multi-state filing for a household

For tax-savvy DIY filers on a budget, FreeTaxUSA shines with transparent low pricing. But those needing more hand-holding may prefer TurboTax or H&R Block.

Customer Reviews and Feedback

Analyzing user reviews across TrustPilot, SiteJabber, and elsewhere reveals positive feedback on FreeTaxUSA's pricing:

• Federal free filing makes it unbeatable value
• $15 state returns are very affordable
• Overall process is smooth and filing accurate
• Support and help resources are lean
• Extremely cost-effective versus TurboTax and H&R Block

The transparency and low fees win consistent praise from savvy users focused on maximizing tax prep savings.

Tips to Get the Most Value

Follow these tips to maximize savings:

• Compare federal and state costs to TurboTax and H&R Block
• Understand what audit support entails if considering Deluxe
• Prepare tax documents beforehand to breeze through interview
• Use import features to avoid manual data entry
• Review accuracy checks and file early to expedite refunds
• Take advantage of free federal regardless of income

Doing your homework, filing accurately, and leveraging import tools ensures you get the full value.

Final Words

Offering $0 federal and $15 state filing this tax season, FreeTaxUSA provides unmatched value that leading tax software rivals can't match. For filers without complex tax situations who are comfortable accurately inputting their own tax data, the savings are undeniable.

The Deluxe edition add-on bolsters support and confidence for a small upcharge. And transparent pricing prevents any bill shock.

For hands-off filers needing higher-touch guidance, TurboTax and H&R Block may justify their higher costs. But for most DIY filers, FreeTaxUSA’s low fees provide unbeatable tax preparation value in 2025, keeping more money in your pocket.

Answers to Common Questions

Is FreeTaxUSA cheaper than TurboTax?

Yes, FreeTaxUSA is considerably cheaper than TurboTax in most cases. For example, TurboTax charges $40+ for federal and $40+ per state return. In contrast, FreeTaxUSA offers free federal filing and a fixed $15 per state. The one exception is filers needing lots of personalized advice, where TurboTax's Live expertise may provide more value.

Does FreeTaxUSA offer help?

The free version of FreeTaxUSA provides access to its knowledge base, FAQs, tax tips library, and customer support via email. To get live phone and chat support, you must purchase the Deluxe edition. So, assistance is available, but limited without the upgrade.

Does FreeTaxUSA import data?

Yes, importing W-2s, 1099s, and past returns into FreeTaxUSA is supported to avoid manual entry. Importing can be done directly from the IRS retrieval tool as well as many major banks and brokerages that partner with FreeTaxUSA to streamline the process. Importing aids accuracy.