During the last few years, more and more companies are starting to offer free federal tax returns. Turbo Tax, being of the most popular, also offers one called Turbo Tax Free Edition which I checked out over the last couple days. I noticed that even though free stuff is always good, you might want to opt for the paid edition instead if:
- Importing – One of the most convenient features of filing taxes electronically is the ability to import all your information from the previous year’s returns. While this also helps tax preparation companies lock you in once you pick one, it saves so much time. Unfortunately, Turbo Tax Free Edition does not support this.
- No Guidance – The paid version provides tons of guidance for filing taxes, especially if you recently had a significant event in your life that changes your tax situation (e.g. marriage, buying your first house etc). The free version is more suited for people who files the simplest of federal tax returns and are comfortable doing it without help.
- Not all Forms are Supported – Furthermore, the free version is not for you if schedules C, D, or E are needed. (Basically everyone that has a business or have sold investments)
- The Biggest Possible Refund – My uncle has been filing his taxes for years, and he realized that he was missing a certain tax credit for years when an accountant tipped him about it. With these electronic tax software and its question and answer process, it’s much easier to take advantage of all the tax credits available for your situation. However, the free version just does not cover as much ground so you might be cutting yourself out of a bigger tax refund if you opt for the free version.
Free returns are great, but if the Turbo Tax Free Edition has limited functionality, it might be best if you choose to pay for it instead.
Seriously consider your situation this year, and figure out whether a free tax return is right for you. Over the next few weeks, I will be doing the same.
Promote or Save This Article
If you like this article, please consider bookmarking or helping us promote it!
Print Post | Email Post | Del.icio.us | Stumble it! | Reddit |
Related Posts
- E-File Our Tax Returns
- TaxACT Online Tax Products Review
- Filing Form 1040X When We Need to Correct Our Filed Tax Return
- 9 Reminders to Help Avoid IRS Audits
- Fees in Your 401(k)
Subscribe! (and Get a Mini-Course with Free Registration)
Follow me on twitter! In addition, subscribe to grab free amazing content or take advantage of the newsletter to have content delivered to you. For starters, a 7-part mini course to help you spend less and be happy will be delivered to you when you subscribe!(Don't worry about spam, because we hate it as much as you do!)
Twitter
Facebook
Subscribe
{ 2 comments… read them below or add one }
Thanks for the advice. I was wondering how the free version would stand up.
You could try TaxACT (full disclosure, they are my employer). While import does remain a feature of our deluxe product, the Free edition is a far more complete product than some of our competitors.
For instance, TaxACT Free Edition supports Schedules C,D,E &F, along with every other form needed to file your federal return. Unlimited, free support is available via email to all of our customers, including access to our taxpayer support team (composed of accountants and CPA’s).
Lastly, if you need to file a state tax return, TaxACT has one of the lowest priced state returns in the industry at $14.95, which is half the price of some of our competitors.
You can try any of our products for free at http://www.taxact.com