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About time. I'm tired of all the tax filing sites that lure you in with claims of "Free!" but then tell you 90% of the way through that "oh, you are a special c

About time. I'm tired of all the tax filing sites that lure you in with claims of "Free!" but then tell you 90% of the way through that "oh, you are a special case, so you need to pony up $100 or so to continue". I've used the Free Fillable Forms option before, but that places a large burden on you to get everything right. Direct File will solve a lot of issues.

crazygringo 2y ago
Another big gotcha I've run into is that the federal return is free... but then you have to pay $$ to file your state return. Which you only find out after you've done 100% of your federal return. Which is just infuriating, because obviously (nearly) everyone has to file both. It's like a restaurant telling you all their soda is free, but then it turns out they charge $3 for the paper cup it comes in, and you're required to use their paper cups.
- morpheuskafka 2y ago
  > their soda is free, but then it turns out they charge $3 for the paper cup it comes in, and you're required to use their paper cups. You're not required to use their software to file the state return though. You can file the federal return and do the state return yourself. Many states like NC rarely have any steps beyond copying the federal AGI and multiplying by the state tax rate for common situations.
  - crazygringo 2y ago
    You're not required to use it for federal filing either though, so that's missing the point. You're signing up to file your taxes for free and spend a couple hours inputting all the info, and then discover you'll have to pay or else now do your state taxes separately on paper and mail them in, taking another hour. It's bait and switch. That's the problem.
- coldpie 2y ago
  Yes, the tax prep industry is a scam. Luckily, you don't have to use it. In my experience (Minnesota), the state return is super easy. Just print out the form, copy some values from the federal, do a little 5th grade math, and mail it in. (Personally, I also do my federal taxes manually, with the IRS's Free Fillable Forms. But either way, there's no need to pay for the state forms.)
- radicality 2y ago
  Who is the one actually charging for the state-filing, where is the money going? Is it the state, or the service provider? This also reminds me of my apartment building, which has an “amenity fee” of $100/month for rooftop+gym usage, on top of the normal advertised rent. In the leasing office, I asked for details about it, and was told it’s a “non-optional” required fee which everybody has to pay. Stuff like that should be illegal - the only reason they would do that is to advertise lower rent.
  - NovemberWhiskey 2y ago
    You can always file your taxes for free - you just get the forms and fill them out. In reality, that's essentially impossible or a waste of time for anyone with even slightly complex tax affairs so you're paying for preparation services - I have 57 pages of tax returns for this year, for example.
  - gbear605 2y ago
    It’s the service provider. You can file directly (paper forms, some states digital forms) with your state for free, but TurboTax et al charge you for it.
  - will5421 2y ago
    That surely is illegal. Call their bluff?
  - crazygringo 2y ago
    It is the service provider that is charging, as far as I know. States aren't charging citizens to e-file their taxes. At least I sure hope not.
- bbkane 2y ago
  I'm just glad they're taking real steps to make it better on any level. My hope is that the states will follow suit
- orhmeh09 2y ago
  Not a problem on my machine in Washington State.
ryandrake 2y ago
I moved from one of those ripoff tax sites (TaxACT) to FreeTaxUSA last year, way too late. Looking back at my records, I paid TaxACT $9.95 to file my taxes in 2007, and that number has been steadily rising ever since: 2011: $17.95 2016: $49.98 2018: $66.95 2019: $97.90 2022: $124.90 2023: $133.95 I mean, yes, my taxes got a little more complicated over the years, but not 13X more complicated. I don't see how these guys justify this price trajectory.
- jkingsman 2y ago
  > I don't see how these guys justify this price trajectory. Until now, you were paying it. "People will pay it" is all the justification needed for price hikes.
- selykg 2y ago
  FreeTaxUSA is pretty great. I've used it for 2 or 3 years now. Would definitely recommend, and it is getting better each year at making the process easier in my experience. I tend to pay a little bit extra for services I don't necessarily need but whatever. Like Deluxe. It's way cheaper than what I would pay for a professional to do it, and still less than I'd pay for Turbo Tax or similar. As long as the quality of the app keeps going up and the price gouging stays out, I'll keep using it.
- glimshe 2y ago
  TaxAct quoted me close to $200 in fees because of my wife's business. With FreeTaxUSA I had a fantastic experience this year for like $14.99 because we pay state income taxes.
supertrope 2y ago
The FTC finally called out Intuit on misleading advertising. Ads now state only 37% of Turbotax customers can e-file for free.
- shagie 2y ago
  FTC sues Intuit for its deceptive TurboTax “free” filing campaign ( https://www.ftc.gov/news-events/news/press-releases/2022/03/ftc-sues-intuit-its-deceptive-turbotax-free-filing-campaign https://www.ftc.gov/news-events/news/press-releases/2022/03/... ) 1552 points on March 29, 2022 | 596 comments https://news.ycombinator.com/item?id=30846071 https://news.ycombinator.com/item?id=30846071 FTC judge rules Intuit broke law, must stop advertising TurboTax as “free” ( https://arstechnica.com/tech-policy/2023/09/ftc-judge-rules-intuit-broke-law-must-stop-advertising-turbotax-as-free/ https://arstechnica.com/tech-policy/2023/09/ftc-judge-rules-... ) 360 points 9 months ago | 89 comments https://news.ycombinator.com/item?id=37441982 https://news.ycombinator.com/item?id=37441982

crazygringo 2y ago

Another big gotcha I've run into is that the federal return is free... but then you have to pay $$ to file your state return. Which you only find out after you've done 100% of your federal return. Which is just infuriating, because obviously (nearly) everyone has to file both. It's like a restaurant telling you all their soda is free, but then it turns out they charge $3 for the paper cup it comes in, and you're required to use their paper cups.

morpheuskafka 2y ago
> their soda is free, but then it turns out they charge $3 for the paper cup it comes in, and you're required to use their paper cups. You're not required to use their software to file the state return though. You can file the federal return and do the state return yourself. Many states like NC rarely have any steps beyond copying the federal AGI and multiplying by the state tax rate for common situations.
- crazygringo 2y ago
  You're not required to use it for federal filing either though, so that's missing the point. You're signing up to file your taxes for free and spend a couple hours inputting all the info, and then discover you'll have to pay or else now do your state taxes separately on paper and mail them in, taking another hour. It's bait and switch. That's the problem.
coldpie 2y ago
Yes, the tax prep industry is a scam. Luckily, you don't have to use it. In my experience (Minnesota), the state return is super easy. Just print out the form, copy some values from the federal, do a little 5th grade math, and mail it in. (Personally, I also do my federal taxes manually, with the IRS's Free Fillable Forms. But either way, there's no need to pay for the state forms.)
radicality 2y ago
Who is the one actually charging for the state-filing, where is the money going? Is it the state, or the service provider? This also reminds me of my apartment building, which has an “amenity fee” of $100/month for rooftop+gym usage, on top of the normal advertised rent. In the leasing office, I asked for details about it, and was told it’s a “non-optional” required fee which everybody has to pay. Stuff like that should be illegal - the only reason they would do that is to advertise lower rent.
- NovemberWhiskey 2y ago
  You can always file your taxes for free - you just get the forms and fill them out. In reality, that's essentially impossible or a waste of time for anyone with even slightly complex tax affairs so you're paying for preparation services - I have 57 pages of tax returns for this year, for example.
- gbear605 2y ago
  It’s the service provider. You can file directly (paper forms, some states digital forms) with your state for free, but TurboTax et al charge you for it.
- will5421 2y ago
  That surely is illegal. Call their bluff?
- crazygringo 2y ago
  It is the service provider that is charging, as far as I know. States aren't charging citizens to e-file their taxes. At least I sure hope not.
bbkane 2y ago
I'm just glad they're taking real steps to make it better on any level. My hope is that the states will follow suit
orhmeh09 2y ago
Not a problem on my machine in Washington State.

ryandrake 2y ago

I moved from one of those ripoff tax sites (TaxACT) to FreeTaxUSA last year, way too late. Looking back at my records, I paid TaxACT $9.95 to file my taxes in 2007, and that number has been steadily rising ever since: 2011: $17.95 2016: $49.98 2018: $66.95 2019: $97.90 2022: $124.90 2023: $133.95 I mean, yes, my taxes got a little more complicated over the years, but not 13X more complicated. I don't see how these guys justify this price trajectory.

jkingsman 2y ago
> I don't see how these guys justify this price trajectory. Until now, you were paying it. "People will pay it" is all the justification needed for price hikes.
selykg 2y ago
FreeTaxUSA is pretty great. I've used it for 2 or 3 years now. Would definitely recommend, and it is getting better each year at making the process easier in my experience. I tend to pay a little bit extra for services I don't necessarily need but whatever. Like Deluxe. It's way cheaper than what I would pay for a professional to do it, and still less than I'd pay for Turbo Tax or similar. As long as the quality of the app keeps going up and the price gouging stays out, I'll keep using it.
glimshe 2y ago
TaxAct quoted me close to $200 in fees because of my wife's business. With FreeTaxUSA I had a fantastic experience this year for like $14.99 because we pay state income taxes.

supertrope 2y ago

The FTC finally called out Intuit on misleading advertising. Ads now state only 37% of Turbotax customers can e-file for free.

shagie 2y ago
FTC sues Intuit for its deceptive TurboTax “free” filing campaign ( https://www.ftc.gov/news-events/news/press-releases/2022/03/ftc-sues-intuit-its-deceptive-turbotax-free-filing-campaign https://www.ftc.gov/news-events/news/press-releases/2022/03/... ) 1552 points on March 29, 2022 | 596 comments https://news.ycombinator.com/item?id=30846071 https://news.ycombinator.com/item?id=30846071 FTC judge rules Intuit broke law, must stop advertising TurboTax as “free” ( https://arstechnica.com/tech-policy/2023/09/ftc-judge-rules-intuit-broke-law-must-stop-advertising-turbotax-as-free/ https://arstechnica.com/tech-policy/2023/09/ftc-judge-rules-... ) 360 points 9 months ago | 89 comments https://news.ycombinator.com/item?id=37441982 https://news.ycombinator.com/item?id=37441982