What to Know Before Choosing a Free Tax Filing Platform

Filing your taxes for free sounds like a dream, right? No accountant bills. No confusing software to pay for. Just a stress-free way to get your tax refund without spending a dime.

But before you hit that big “Sign Up” button on any free tax filing platform, there are a few things you really need to know.

Because, spoiler alert, free isn’t always actually free.

All Free Tax Filing Platforms Are Not the Same

It’s easy to assume that all free tax filing services offer the same thing. You input your information, they do the math, and poof – taxes done.

But that’s not always the case.

Some platforms only offer free filing for the simplest tax situations, such as single filers, W-2 income, or the standard deduction. The second your situation gets even a little more complex, like if you freelance, own property, or want to claim certain credits, you might be hit with a surprise upsell.

That’s why it’s important to read the fine print before you get halfway through entering your information.

Know Your Tax Situation First

Before you even start browsing platforms, it helps to know where you stand.

Ask yourself:

• Do you have multiple income sources?
• Are you self-employed?
• Did you move states?
• Are you claiming dependents or any special credits?

The more complex your return, the fewer truly free options will be available. Knowing this up front saves time and frustration later.

Features That Should Be Included

When you’re choosing a free tax platform, don’t just look at the price tag. Look at what’s included.

Some essential features are:

• State tax filing. Some platforms offer free federal but charge for state.
• Importing W-2s. It saves time and avoids any mistakes or typos.
• E-filing. This is basic but still important.
• Live support or chatbots. If you get stuck, you’ll want help.

Some software packages by Intuit, like the TurboTax free, are popular because they cover a decent range of situations for free. But it’s still worth checking if your specific tax situation qualifies.

Red Flags to Watch Out For

Here’s what to watch for before committing to any platform:

• Limited forms. If you’re self-employed or have investment income, some platforms might block you from filing for free.
• Hidden fees. A lot of sites start off free and then sneak in charges once you’re deep into the process.
• Data selling. Some free platforms make their money by selling your data to third parties. Read that privacy policy, always!
• Hard-to-reach support. If it’s a maze to get help, you might regret going with that platform when issues pop up.

When Free Isn’t the Best Move

Sometimes, paying a little can actually save you a lot.

If your tax situation involves things like:

• Freelance income
• Itemized deductions
• Rental property
• Investments

It might be worth upgrading to a paid tier. These returns are just too complex to trust to the most bare-bones options.

Don’t Forget to Check for Government Options

Did you know that the IRS actually partners with some companies to offer Free File options for those earning under a certain threshold?

It’s a good alternative if you’re looking for an actual no-strings-attached option. Just double-check that it covers both federal and state tax filing.