FreeTaxUSA Review 2026: Pros, Cons, And Alternatives

FreeTaxUSA - Is It Really Free?

WARNING: Despite the name, FreeTaxUSA isn’t really free for most people.

While "free" is in the name, FreeTaxUSA isn’t actually free for most users. That may be our biggest gripe with the company. The company does offer free federal tax filing for all filers. You're done there if you live in one of the seven states without a state tax return requirement. All other filers pay $15.99 to file state returns.

TIP: The $7.99 update to Deluxe is worthwhile for most users, as it includes access to tax pros for questions and unlimited amendments.

The company offers three optional upgrades. The upgrade packages offer priority support and unlimited amended returns for $7.99 or personal tax support from a professional for $44.99. You can upgrade to get audit defense for $19.99.

While it isn’t free for anyone needing a state tax return, FreeTaxUSA offers an excellent bargain and one of the cheapest tax filing packages around. If you don’t qualify for free or low-cost tax returns elsewhere due to investments or self-employment income, you can find significant savings with FreeTaxUSA. Out-of-state landlords, side hustlers, and self-employed business owners may all appreciate FreeTaxUSA’s low cost and ease of use.

Foreign employment income, nonresident alien tax returns, filers currently residing outside the United States, and high-value donations of property worth more than $5,000 are among the few unsupported tax situations.

We also don’t suggest it for active stock or crypto traders. For those needs, we recommend the easier experience from TurboTax or H&R Block, despite the higher cost.

Note: FreeTaxUSA is an IRS Free File provider, but the software and limitations differ when you use the IRS website versus FreeTaxUSA directly. And if you start on IRS Free File, you cannot switch back to the full version of FreeTaxUSA.

What's New In 2026?

As with other tax software, FreeTaxUSA is updated for 2026 (2025 tax returns) for new tax laws and changes. Following the prompts and correctly entering your information should yield the same results as with any other tax software.

One massive upgrade is the option to upload a PDF of your investment 1099 files. You can download the consolidated 1099 package from your brokerage, such as Schwab, Fidelity, or Vanguard, and import the PDF to automatically fill your tax returns with the required transaction and dividend information to calculate your taxes. No more manual form entry!

The most significant changes for 2025 taxes are related to the “One Big Beautiful Bill Act,” which includes major updates to taxes related to the standard deduction, health insurance, small businesses,  state and local tax (SALT), gift taxes, and green energy deduction, among other tax rate, credit, and deduction changes.

Pricing went up a little bit compared to last year, but the increases are much less than most competitors, and most people would only pay a dollar more than last year.

You can pay less to go it alone, but those who need basic tax assistance or amended returns can upgrade to Deluxe for $7.99. Help from a tax pro with phone and screen sharing costs $44.99.

In recent years, FreeTaxUSA improved its navigation and other features, bringing it closer to the industry-leading experiences from higher-cost TurboTax and H&R Block. It isn’t as user-friendly as TurboTax, but considering the cost, it’s very good.

Does FreeTaxUSA Online Make Tax Filing Easy In 2026?

FreeTaxUSA offers some of the lowest pricing of all tax software options. It’s an excellent value for what it offers, beating many other competitors with discount tax preparation software pricing. It's why The College Investor named FreeTaxUSA our best online tax filing software option for 2026.

It’s not as easy to use as TurboTax or H&R Block. Those premium software packages offer more powerful import and integration capabilities that can dramatically ease the monotonous parts of tax filing. However, FreeTaxUSA’s notable features, such as question-and-answer guidance and helpful section summaries, make the software relatively easy to use. The software’s error handling is also very helpful in ensuring you don’t miss anything important.

Although users may spend more time manually typing information into the software, FreeTaxUSA is a very good alternative to the most expensive DIY tax options.

Notable Features

FreeTaxUSA isn’t premium-priced software, but it has helpful features that make it a solid contender. Here are a few of the most notable features you’ll find with FreeTaxUSA.

Q&A Plus Menu Guidance

Low-Cost And Simple Pricing

Federal filing is free, but each state filing costs $15.99. If you live and work across state lines or have moved to a new state, for example, you may have to file in two states for about $32. Users can upgrade to the higher-end service for $7.99, with additional support, or to $44.99 for help from a tax pro.

Pro Support packs a ton of value in for the price, especially compared to other tax-filing software options.

Improving PDF Tax Form Support

With the addition of the option to import a 1099 consolidated form, you can now import your W-2 and investments from many brokerage accounts. FreeTaxUSA has made a huge leap toward the top of the pack in terms of usability.

Reasonably Priced Audit Support

Audit support isn’t included in FreeTaxUSA’s base price. Audit assistance is a standalone purchase at $19.99. This is a reasonably good deal if you’re concerned about the IRS coming back with questions about your tax return.

Drawbacks

FreeTaxUSA packs a lot of value for a low price, but it has several drawbacks compared to top-priced competitors. Here are a few software shortcomings to keep in mind when shopping for the best low-cost tax software.

Limited Tax Form and Data Imports

Users can import W-2 forms and consolidated 1099 forms, but other PDF imports are not supported. Users must type information from their tax documents into the software.

This is quick and easy if you only have a W-2 and a savings account, but those with many accounts, cryptocurrency holdings, or unsupported active investment accounts are still better off paying more for TurboTax or H&R Block in many cases.

State Filing Isn't Free

Several companies include free state filing for W-2 employees with simple tax needs in their free tiers. State taxes cost $15.99 with FreeTaxUSA, even on its Free Edition. This isn’t a huge price compared to $50+ per state with some others. But it is more than $0, which is disappointing given that “free” is in the name.

FreeTaxUSA Prices And Plans

The FreeTaxUSA approach to filing is straightforward. Federal filing is always free, and state filing costs $15.99 per state. Users who want access to a tax pro for questions and audit support pay extra, but you’ll never pay extra based on the complexity of your filing situation. Adding audit support costs $19.99 in addition to the packages below.

FreeTaxUSA also offers a few optional services that cost extra.

• Pay With Your Tax Refund: $24.99 (we don't recommend this)
• “Professionally Printed” Return: $8.96 (includes shipping)
• “Professionally Bound” Return: $17.96 (includes shipping)
• Prior Year Return: $17.99 per state
• Current Year Amended Return: $16.98
• Prior Year Amended Return: $17.97

How Does FreeTaxUSA Compare?

FreeTaxUSA is one of the most popular low-cost tax software companies, so our comparisons focus on other popular software options in the same (or close) pricing category. TurboTax and H&R Block are more expensive than FreeTaxUSA but offer better functionality.

All of these programs have a free tier. We think FreeTaxUSA tends to be better for self-employed people, landlords, and people who lived or worked in multiple states who are experienced in filing their taxes and want to save money on their return.

Contact

FreeTaxUSA customers can access basic customer support by logging into their accounts and sending an email. The company says it typically responds to questions within 30 minutes. You can also email [email protected].

GOOD TO KNOW: Upgrading to pro support costs $44.99 and includes phone and screensharing with a tax expert. You’ll pay more than that for just a tax return at top competitors.

With the Deluxe Edition, you get "Live Chat with Priority Support." You get to jump to the front of the queue to chat directly with a tax specialist at this level. Chat support is available Monday - Friday, 10 a.m. to 9 p.m. Eastern (ET).

With Pro Support, you can reach a human tax professional by phone, and screen sharing is available.

Is It Safe And Secure?

FreeTaxUSA has not suffered from any significant security breaches. It operates with industry-standard security and encryption. Multi-factor authentication is required to log in and access your tax data. The College Investor team's research did not reveal any historic security breaches. Users should trust FreeTaxUSA when filing their taxes.

However, even users who trust FreeTaxUSA should know that their data is at some level of risk. Hackers could target FreeTaxUSA, leading to a data breach that exposes personal information. It’s also critical to follow online security best practices, notably keeping a unique password for every site, to keep your information safe if another site you use is compromised.

Common Questions

Here are some common questions about FreeTaxUSA:

Can FreeTaxUSA Online help me file my crypto investments?

FreeTaxUSA may be good enough to file your returns if you only traded a few tokens. You’ll have to look up the US Dollar basis of the trade, but you can key in the trades. However, active crypto traders will want to look elsewhere. Typing in dozens of trades into FreeTaxUSA is unlikely to be a good use of time.

Do I have to pay more for a self-employed tier for my side hustle?

No, FreeTaxUSA charges all users the same amount, no matter the complexity of their filing situation. Federal filing is always free, and state filing costs $14.99 per state.

Does FreeTaxUSA offer refund advance loans?

FreeTaxUSA doesn’t offer refund advance loans for 2026.

Does FreeTaxUSA offer any deals on refunds?

No, FreeTaxUSA isn't offering any deals or incentives associated with refunds. But it’s already a pretty good deal for tax prep.

Is FreeTaxUSA legitimate?

Yes, it's a popular tax software preparation company that has been in business since 2001.

Does the same company own TaxHawk, FreeTaxUSA, and 1040Express?

Yes, FreeTaxUSA is a subsidiary of TaxHawk Inc. The parent company owns three software brands, TaxHawk, FreeTaxUSA, and 1040Express.

Is FreeTaxUSA better than TurboTax?

It depends. FreeTaxUSA is generally lower cost than TurboTax, but TurboTax also offers free filing options. FreeTaxUSA is generally much cheaper for a simpler tax prep experience, while TurboTax offers better imports and a slicker interface for a premium price.