Based on our comparison of FreeTaxUSA vs TurboTax, we found that FreeTaxUSA is better than TurboTax for self-employed business owners needing to file a Schedule C, including those that want to consult with a tax professional. However, TurboTax is best for self-employed business owners that want full-service tax preparation and business owners that need to prepare a partnership, S-corp, or C-corp return.
Both platforms offer a range of features to help individuals and businesses navigate the complexities of tax season. Ultimately, the choice between the two will depend on your specific needs, budget, and comfort level with navigating tax software.
FreeTaxUSA vs TurboTax at-a-Glance Comparison
 |  | |
|---|---|---|
Best For | Self-employed business owners wanting to prepare their own tax return with Schedule C | Small businesses needing to prepare Form 1120, Form 1120S, or Form 1065 returns, and business owners wanting full-service tax preparation. |
Pricing |
|
|
Schedule C Business Income & Loss | ✓ | ✓ |
Data Import | ✓ | ✓ |
Audit Guidance and/or Defense | Add-on for $19.99 | ✓ |
Deduction Finder | ✓ | ✓ |
Tax Pro Assistance With Business Returns | Add-on for $39.99 | ✓ |
S Corporation (S-corp) & Partnership Returns | ✕ | ✓ |
Average User Review Score on Third-party Sites | 3.0 out of 5 | 1.2 out of 5 |
For More Information |
Taxes are easier with clean books. Get on top of your financials today with Merritt Bookkeeping. |
|
When To Use
FreeTaxUSA vs TurboTax: Pricing
FreeTaxUSA and TurboTax have very different structures when it comes to pricing and the services provided. FreeTaxUSA is much more affordable than TurboTax while still offering support from a tax pro. However – unlike FreeTaxUSA – TurboTax offers software to prepare corporate and partnership returns and full-service tax preparation for any return.
For individual federal tax returns, FreeTaxUSA is free for all tax situations, including self-employed individuals filing a Schedule C, whereas TurboTax only offers free online filing for basic tax returns (Form 1040 only). TurboTax offers both full-service and assisted support, but FreeTaxUSA only allows for assisted support.
Also, FreeTaxUSA users can choose from two levels of support: Deluxe for an additional $7.99, or Pro for $39.99, which gives you access to a CPA or EA.
FreeTaxUSA vs TurboTax: Live Assistance
FreeTaxUSA | TurboTax | |
|---|---|---|
Communication Method | Email or live chat; Pro Support subscribers can schedule a virtual meeting | Phone, chat, and one-way videoconferencing |
Qualifications of Professionals | CPAs, EAs, or tax specialists | CPAs, EAs, or tax specialists |
Tax Pro Assistance for Individual Returns | ✓ | ✓ |
Tax Pro Assistance for Business Returns | N/A | |
Full-service Filing for Individual Returns | N/A | ✓ |
Full-service Filing for Business Returns | N/A | ✓ |
The major difference between FreeTaxUSA vs TurboTax is that the former lacks phone support for basic customer service. It is limited to email and live chat, although if you sign up for the Pro Support plan for $39.99, you can schedule a virtual meeting with a tax professional. It also offers deluxe support for $7.99 for priority support and audit assist. Meanwhile, TurboTax also lets you set up a meeting via one-way videoconferencing, which is useful when sharing documents.
Also, FreeTaxUSA doesn’t provide any type of full-service support for preparing and filing business returns, whereas TurboTax does.
FreeTaxUSA vs TurboTax: Helpful Tools
FreeTaxUSA | TurboTax | |
|---|---|---|
Deduction Maximizer | ✓ | ✓ |
Audit Support | Available with Deluxe upgrade | ✓ |
Audit Defense | ✕ | Additional fee |
Cryptocurrency Support | ✕ | ✓ |
Tax Calculator | ✕ | ✓ |
Import W-2s & 1099s | ✕ | ✓ |
Amended Returns | ✓ | ✓ |
Prior Year Return Filing | ✓ | ✓ |
TurboTax excels in this area, while FreeTaxUSA lacks a few useful tools, including cryptocurrency support, a tax calculator, and the ability to import W-2s and 1099s. However, it does let you file an unlimited number of amended returns for free, and you can file prior year returns as well.
Also, while FreeTaxUSA offers audit support if you upgrade to the Deluxe plan, TurboTax offers an audit support guarantee that provides you with free one-on-one audit guidance on how to get through the process of being audited. TurboTax has also partnered with TaxAudit to provide prepaid audit defense for $39.99 per year, and it will defend both federal and state returns, including those that were filed late.
FreeTaxUSA vs TurboTax: Mobile App
FreeTaxUSA App | TurboTax App | |
|---|---|---|
Availability | N/A | iOS and Android |
Products Supported | N/A | Free |
Talk Live With Tax Specialist | N/A | ✓ |
E-File Return | N/A | ✓ |
Scan & Upload W-2 | N/A | ✓ |
IRS Refund Tracking | N/A | ✓ |
View/Print/Save Return as PDF | N/A | ✕ |
The clear winner between TurboTax vs FreeTaxUSA in terms of mobile app is TurboTax. It has a mobile app for iOS and Android users, and though it only supports the Free plan, it lets you communicate live with a tax specialist, e-file your tax return, scan and upload W-2s, and track your IRS refund.
TaxAct vs TurboTax: Customer Service & Ease of Use
FreeTaxUSA | TurboTax | |
|---|---|---|
User Interface (UI) | Easy-to-use | Straightforward |
Support Channels | Email or live chat; Pro Support subscribers can schedule a virtual meeting | Phone, chat, and one-way videoconferencing |
Expert Help Offered | ✓ | ✓ |
Additional Services | Free prior year returns and tax extensions | Self-employed expense estimator and check your refund status |
FreeTaxUSA has a clean interface that is easy to navigate, and it lets you set up your account information easily. User-friendly navigation tabs allow you to jump to particular sections of your return—namely income, deductions and credits, and a tax filing page.
You just need to answer a few questions about your tax situation, and then you can determine whether you qualify for particular credits or deductions. Included are helpful explainers of tax concepts and the ability to calculate your estimated tax refund or amount due.
While the provider lacks phone support, you can access a customer support agent via email or live chat. You can also upgrade to the Deluxe plan, which gives you access to its live chat feature. If you’d like to speak with a CPA or EA, you can upgrade to the Pro plan. You can also search for support topics on its Customer Support page and question and answer (Q&A) database.
FreeTaxUSA input screen
Meanwhile, TurboTax has an intuitive and user-friendly interface that guides users through its tax preparation process. It provides a step-by-step approach, asking questions relevant to the user’s tax situation and tailoring the experience based on their responses. This helps simplify the tax filing process, making it more accessible to individuals with varying levels of tax knowledge.
The platform also has built-in error-checking mechanisms to help users identify and correct potential errors or discrepancies. It performs automatic calculations and ensures that the tax return is completed accurately.
There are several ways to receive support from TurboTax, including phone support, live chat, and email assistance. Users can reach out to TurboTax experts to get answers to their tax-related questions or seek guidance during the tax preparation process.
You can also opt to sign up for TurboTax Live, which provides you with a one-on-one review with a tax expert prior to filing and unlimited advice as during the preparation process. You can also sign up for TurboTax Live Full Service, which will prepare and file your return for you, including two video calls. TurboTax also provides an extensive online help center with a comprehensive knowledge base and community forums.
TurboTax input screen
TurboTax vs FreeTaxUSA: User Reviews
We compared the user reviews for TurboTax and FreeTaxUSA from two third-party review sites, Trustpilot and sitejabber. While neither program has excellent reviews, FreeTaxUSA’s reviews are significantly higher than TurboTax. In our experience, tax preparation software tends to get much lower review scores than most software and we feel this is because of the stress and complexity of filing taxes.
FreeTaxUSA users appreciate that it is free for all individual federal tax return filing, no matter your tax situation, and Schedule C businesses as well. While some reviewers also praised the low filing fees for state returns, other reviews were disappointed that they had to pay for the state return. Overall, most reviewers were critical of FreeTaxUSA with 143 one star reviews vs 82 five star reviews on sitejabber. The provider’s most significant limitation is that it doesn’t provide phone support and confusion around the pricing of state returns. We agree phone support for everyone would be nice, but note that you can get phone support if you pay $39.99 for support from a tax pro. We’re a bit confused about the criticism of state pricing, because the website clearly states that all state returns are $14.99 and doesn’t advertise any as being free.
FreeTaxUSA earned the following average scores on popular review sites:
- Trustpilot1: 3.5 out of 5 based on about 54 reviews
- Sitejabber2: 2.5 out of 5 based on around 286 reviews
Meanwhile, TurboTax users were severely critical of the software with 407 one star reviews vs 10 five star reviews on sitejabber. Most users are upset with what they see as “bait and switch” practices and how confusing the pricing structure is on the website. I certainly agree with their pricing concern as the pricing is far more complicated to discern from their website than any of their competitors. There were also complaints about the low quality of customer service and the fees charged for advance refunds.
TurboTax has the following average scores on popular review sites:
- Trustpilot3: 1.2 out of 5 based on about 334 reviews
- Sitejabber4: 1.2 out of 5 based on about 451 reviews
Frequently Asked Questions (FAQs)
No, it currently doesn’t. However, you can contact the company through email or direct messaging within the software or search the Questions and Answers database. FreeTaxUSA’s Deluxe plan subscribers have access to free chat, priority support, and audit assist. If you sign up for the Pro plan, you’ll get access to a CPA or EA who can answer all of your tax questions.
Yes, TurboTax has a free iOS and Android mobile app
Yes, and FreeTaxUSA will assist you with getting the largest refund possible. It focuses on areas relevant to military personnel and veterans, including combat pay exclusion, moving expense and uniform deductions, job search expenses, reservist’s travel deduction, and earned income tax credit (EITC) for nontaxable combat pay.
Yes, TurboTax has two different levels of live tax help. Its Live Basic (assisted) plans offer a consultation with a tax professional while the Live Full Service plan gives you access to a tax professional who will prepare and file your return, with two consultations scheduled during the process.
Bottom Line
In the battle between TurboTax vs FreeTaxUSA, FreeTaxUSA stands out with its affordable pricing for individual tax filers and straightforward UI, making it an excellent choice for budget-conscious individuals and those with simpler tax situations. On the other hand, TurboTax provides a more comprehensive and user-friendly experience, particularly for complex tax scenarios and those who value extensive customer support.
User review references:
1Trustpilot | FreeTaxUSA
2Sitejabber | FreeTaxUSA
3Trustpilot | TurboTax
4Sitejabber | TurboTax
