10 Cheap Ways to File Your Taxes Online (Including Free Options)

The creation of tax filing online is a genius idea. It allows people to file their taxes from the comfort of their own home.

Plus, many online tax filing programs are affordable and even free! However, not all programs are right for all tax situations. And some are easier to use than others. Which one will you choose?

At A Glance: Our Top Picks

Company	Federal Free*	Cost for Additional State
TurboTax	Yes	Free to $64 per state (or $64 during peak tax season)
TaxAct	Yes	$54 per state
H&R Block	Yes	$0 per state for qualified persons

Cheap Options to File Taxes Online

You’ll want to know which tax preparation websites are the best – and cheapest. As a consumer, you have several options when filing your taxes online.

We’ll outline some of the most popular choices here. Most of these have a free option, so be sure to read the details below.

* Some additional fees may apply; see individual websites for details.

1. TurboTax

TurboTax has offered cheap and free tax return filing for over 40 years. It provides various levels of services to match the complexity of different tax situations.

TurboTax’s free edition doesn’t come with federal or state return fees. The free service is best for relatively simple tax situations. For example, you cannot own a home, take itemized deductions, or own a business to access this free version.

The free option could work for you if you have a clean-cut tax situation, W-2 income, no itemized deductions, and no other odd inclusions. But the good news is you won’t run into income limits with this free option.

The Deluxe edition is a popular choice if you have a slightly more complicated tax situation. This option allows you to itemize deductions. You can add charitable deductions, mortgage interest deductions, and more.

Related Post: TurboTax Review

2. TaxAct

TaxAct has been in business since 1998. They provide serious competition with TurboTax when filing your taxes online.

Like TurboTax, TaxAct offers a free option. The service will file your federal tax return for free. But you’ll have to pay for state returns. This edition is limited to 1040 form filers. Remember that 1040 filers can take limited deductions. It all depends on the form they use.

The next step up is the Deluxe Edition. If you have itemized deductions, this version can work for you. You’ll want to use it if you have charitable deductions, mortgage interest deductions, or a health savings account. You will also need to use this edition if you need to report unemployment income.

TaxAct’s $100k Accuracy Guarantee promises to get you the maximum refund. If you don’t get your maximum refund, TaxAct will refund your filing costs, pay out the difference in your tax liability, and cover legal or audit expenses of up to $100,000. For more information, check out our complete review of TaxAct.

3. FreeTaxUSA

FreeTaxUSA has been processing online tax returns since 2001. They have four different programs, each offering free filing for federal taxes: Basic, Advanced, Premium, and Self-Employed.

The Basic edition is meant for the most basic tax returns. It includes the child tax credit and can be used for students as well. The Advanced edition is helpful for those who want to deduct homeowner interest and earned income credits.

The Premier edition is meant for those with common deductions such as rental income, homeowner interest, earned income credit, and HSA deductions. The Self-Employed edition can accommodate freelancers, small business owners, contractors, and more.

All editions include state tax filing for just $14.99 and the pro version for $44.99. With any edition, the Deluxe Edition is an add-on. If you choose the Deluxe Edition add-on with FreeTaxUSA, you pay just $14.99 and get some important upgrades, such as live chat with priority support and unlimited amended returns.

If you’re looking for free and easy, you might like FreeTaxUSA to file your taxes. For more information on FreeTaxUSA, check out our complete review of FreeTaxUSA.

4. H&R Block

H&R Block is by far the tax preparation company with the most experience. They opened their doors over 60 years ago. This company has four different ways you can file your taxes online. By using one of them, you may be able to save money when filing your taxes.

The first option is the free version. The H&R Block Free Online plan costs $0 for federal filing and $0 for state filing. Their website says it’s best for new filers, simple filers, and homeowners.

Unlike most free tax software, you can deduct mortgage interest with H&R Block. Besides, you can deduct donations, student loan interest, and childcare expenses too. This difference is nice from some of the other free products we’re discussing.

H&R Block Deluxe Online is the next level up. This version allows you to include deductions tied to homeownership, HSA contributions, and charitable contributions. This low-price plan also lets you report freelancer income with basic deductions. For instance, maybe you make money with a delivery app side hustle.

5. Cash App Taxes

You might be surprised to see this addition to our online tax filing choices. Cash App has long been known as a peer-to-peer payment platform. But it also offers free tax filing.

Cash App Taxes helps you file your federal and state taxes for free without a maximum income limit. For instance, you can file self-employment or itemized tax returns for free. However, this platform doesn’t support part-year or multiple-state tax returns.

And if you have your refund deposited into your Cash App account, you can get the money up to five days faster. You need to download the Cash App to file your taxes with Cash App taxes. However, the Cash App is free to download.

6. E-file.com

E-file.com used to do 1040EZ filing for free. Now that the EZ form doesn’t exist, they’ve stepped up their game and added other options.

E-file.com has fewer added features and benefits than the other programs mentioned here. However, it has one bonus: it’s sometimes cheaper. You will find three levels: Free Federal Basic, Deluxe Plus, and Premium Plus.

Efile.com’s Free Federal Basic program is available if you have a W-2 income of less than $100,000 per year and no itemized deductions. Also, E-file.com has online customer service support to answer your questions, which may save you from needing to call the IRS or see a tax pro.

E-File’s Premium Plus version is an upgrade that supports all income levels, tax credits, and deductions. Plus, you can also use it for business and personal income. So if you plan to itemize your deductions, this is the plan you will need.

7. TaxSlayer

TaxSlayer has been around since 1965. It offers four different programs, starting with TaxSlayer’s Simply Free program, which costs $0 for both federal and state returns. The free version includes live phone support and free email support, but so do the other TaxSlayer programs.

The TaxSlayer Classic program works with all major IRS forms, including self-employment income. Selling investments and reporting rental property income qualify for this plan too. However, you must choose a pricier plan to get hands-on support.

If you want extra help, TaxSlayer’s Premium version offers three years of IRS audit assistance, Ask a Tax Pro assistance, and live chat technical support. This version sounds suitable for those with itemized deductions, so consider Premium if you have mortgage interest, charitable deductions, etc.

TaxSlayer’s Self-Employed edition is the most comprehensive option. This edition is best for freelancers and independent contractors, but it’ll also work for rental property owners.

8. eSmart Tax

Another online tax prep company you may not know about is eSmart Tax. However, you might be familiar with their parent company–Liberty Tax. Note that eSmart no longer offers a free file option for basic filers. Instead, eSmart Tax users can choose from these three options.

The eSmart Tax Basic program is best for a simple tax situation without dependents, a standard deduction, W2 wages, unemployment income, and taxable interest of less than $1,500.

eSmart Tax’s Deluxe version is best suited for investors and families. It’s helpful for certain tax events such as dependent children, investment income, retirement income, itemized deductions, child care and education tax breaks, and more.

The eSmart Premium version is for self-employed individuals. It has all of the features of the Deluxe version, plus you can include income from real estate rentals. Other covered tax situations include asset depreciation, HSA deductions, and taxable income over $100,000.

9. Jackson Hewitt

Founded in 1982, Jackson Hewitt is the second-largest tax preparer in the U.S. It offers both DIY and assisted online tax filing programs.

If you want to file online taxes with Jackson Hewitt, you’ll pay just $25. That $25 fee covers both your federal and state returns. This flat fee covers any return you want to file, including schedules for 1099-MISC income and more. The price has not gone up over the years.

If you want to file taxes with a tax pro, you can go to a Jackson Hewitt office in person or drop your taxes off at an office. As you can see, Jackson Hewitt has desirable prices compared to some of the other online filing companies mentioned here.

10. Liberty Tax

Liberty Tax has been in the tax filing business for over 20 years. With Liberty Tax, you can file online on your own or with the help of a tax professional. When you file online, you can choose from Basic, Deluxe, and Premium programs. Liberty Tax’s Basic program supports forms 1040 and 8853, along with schedules A and B.

Liberty Tax’s Deluxe program supports forms 1040, 4562, 8829, 8853, 4136, and 8839. You can use Schedules A, B, and C with this program. Liberty Tax’s Premium program gives you more filing options to include forms 4835 and 4684, on top of what the Deluxe program covers.

State returns cost an additional fee. Liberty Tax also has the option to file online with a Tax Pro. Those prices aren’t listed on the Liberty Tax website.

Liberty Tax has a 100% satisfaction guarantee for all its programs. You can also personally visit a Liberty Tax professional to file your taxes. See the Liberty Tax website for available locations.

Can I File Online Directly Through the IRS?

You might wonder if you can file taxes online through the IRS. Yes, you can. The IRS has a filing tool they call Free File. This tool allows you to file your federal tax return directly with the IRS.

However, they only have two versions available. One is for those with an annual income of $73,000 or less, and the other is for those who earn income above $73,000 per year.

If your income is below $73,000, you may qualify to file your state return for free. You can also get advanced calculations and hands-on guidance.

Free File Has More Than One Downfall

This could be a good tax filing option for some, although I see a couple of drawbacks with the IRS’s Free File program. The first problem is a big one: It doesn’t offer technical support.

If you need help filing your taxes, you may need to switch to a better platform. As a result, you will lose time using the IRS Free File. Do you have a super-easy return or know much about the tax laws? If so, the Free File program could be right for you.

However, it will require some serious work on your part. You’ll need to learn what information to include on your return.

There’s another hurdle with using Free File through the IRS. They don’t support your state return if you use the “above $73,000” version. You’ll start from scratch as you file your state return if you earn too much.

However, using one of the paid-for versions above eliminates that issue. You’ll be able to transfer your information to the state form. Choosing good tax software will save you loads of time. And time is money, as the saying goes.

If You Like Learning Tax Laws

Some people would prefer to learn all there is to know about filing their taxes. This life skill allows them to file their taxes for free every year.

Do you find learning that type of content interesting? Are you okay with educating yourself on tax law changes every year? If so, learning how to do your return could be beneficial.

Yet, you’ll find that information mundane if you’re like me. In that case, you may be better off leaving your tax returns to the experts. Use a service like the ones mentioned above. You can also find a local provider to make your life easier or hire an online tax pro to help prepare your return.

Decide What’s Important To You

Only you can choose whether to use a free program that the IRS offers. Or if you want to use a free version provided by a tax company. However, if you can’t file for free, you must decide what’s important. Is it worth paying for the ease and convenience the tax pros offer?

I’ll pay for convenience every time. Tax pros save me hours of work on a subject I don’t know much about. Filing my taxes is one task I’ll leave to the experts. Yes, I have to pay for the service.

But it’s worth the money to me. I don’t have to learn about tax law changes each year, and I have more peace of mind that my tax return is accurate and doesn’t overlook any tax deduction or credit.

Tax Software Comparison Table

Here’s a quick breakdown of the options covered above:

Service	Free version	Price
TurboTax	Yes	$0 to $119
TaxAct	Yes	$0 to $109.90
FreeTaxUSA	Yes	$0 to $14.99
H&R Block	Yes	$0 to $89
Cash App Taxes	Yes	$0
E-file.com	Yes	$0 to $49.99
TaxSlayer	Yes	$0 to $67.95
eSmart Tax	Yes	$24.95 to $64.95
Jackson Hewitt	No	$25 to $99+
Liberty Tax	No	$84.90 to 124.90

Summary

I’ve shared a lot of information on the various online tax prep companies so you can file your taxes online. As you can see, many cheap and free ways to file your taxes online exist. Pick the best option that works for you and your situation.

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