FreeTaxUSA vs. TurboTax (Updated for 2025)

TurboTax and FreeTaxUSA are online tax preparation services that can be used by individuals and businesses. TurboTax is more full-featured and has lots of built-in guidance, as well as helpful support delivered by phone or chat. However, some services can be significantly more expensive. FreeTaxUSA charges nothing to file federal tax returns but additional services that include support by phone or chat and filing state returns will cost you. If you need help at tax time, a financial advisor may be able to assist you with tax return preparation.

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TurboTax Basics

TurboTax is one of the most popular tax return services and filers can choose from a variety of plans to meet their needs. The user interface is well-designed and the company provides lots of tools and guides as well as extensive customer support. If that’s not enough, you can also get help from a live tax expert.

TurboTax offers four filing options with different pricing points:

TurboTax Free Edition: Free for both federal and state returns, ideal for simple Form 1040 filings, and includes basic features like error checking and dependent deductions.
TurboTax Deluxe: Costs $39 for federal and $25 for state (E-file $20), suited for homeowners, with added features like a charitable donations calculator.
TurboTax Premier: Costs $105 for federal and $25 for state (E-file $20), tailored for investors and rental property owners with tools for stock reporting and rental income.
TurboTax Home & Business: Costs $120 for federal and $25 for state (E-file $20), ideal for self-employed and small business owners with access to tax experts and business deduction tools.

The cost for state returns currently ranges from $20 to $25, depending on whether you e-file. If you’re self-employed or own a business, claim a lot of credits or require more than the usual number of tax forms, for example, you’ll need to use higher tier services.

TurboTax can be more expensive, but it provides some guarantees that could make it worthwhile. For example, the company guarantees you won’t get a bigger refund anywhere else. It backs that up with an offer to refund everything you paid to use the service if another return preparer gets you a larger refund. Its accuracy guarantee also includes a promise to pay any penalty and interest resulting from an error.

FreeTaxUSA Basics

FreeTaxUSA is among the least expensive tools to help you file your taxes. It handles federal and state tax returns and offers features such as automatic transfer of information if you used the program for the previous year’s return.

FreeTaxUSA has three filing options: Basic, Deluxe and Pro Support. Basic support is free to use for federal tax returns, but FreeTaxUSA charges a flat $14.99 for state returns.

Basic is for less complicated returns but includes all major tax forms, as well as agent support via email or the in-app support center.
Deluxe caters to investors, those with rental income and people who sold their home in the previous year. You can live chat with tax specialists and get unlimited amended returns for $7.99.
Pro Support offers you access to an expert for personal tax advice and phone support at $39.99.

Optional add-ons include Audit Defense (for $19.99 they will communicate with the IRS on your behalf and cover up to $1 million in services); unlimited amended returns for $15.98 (this service is free for Deluxe and Pro Support filers); get professionally printed returns for $7.97 and professionally bound returns for $15.97.

Side-by-Side Comparison

Here’s a side-by-side comparison of TurboTax and FreeTaxUSA:

Feature	TurboTax	FreeTaxUSA
Federal Tax Return Cost	Email-only	Free
State Tax Filing Cost	$25 ($20 for E-file)	$14.99
Support	Phone, chat online user group	Email only
Guarantees	Accuracy, maximum refund	Accuracy
Audit assistance	Included in all filing levels	Included in the Audit Defense for $19.99 fee
User interface	Includes lots of guidance but more complex	Simple, basic and unadorned

Bottom Line

TurboTax and FreeTaxUSA can handle tax return preparation for most taxpayers. FreeTaxUSA can charge nothing to file federal returns and only $14.99 per state return but offers limit user support and guides. TurboTax will file simple federal returns free of charge and provide robust information and support, but more complex returns and levels of support can cost up to $120 for the Home & Business level, plus $20-$25 per state tax return.

Tax Filing Tips

If you have questions about your tax situation, a financial advisor with tax expertise can help. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
SmartAsset’s Federal Income Tax Calculator can provide important information for your financial plan by estimating how much you will owe in income taxes this year. You can get a basic idea of your future tax obligation as well as your take-home pay by entering your location, income and filing status. The more advanced estimator accounts for 401(k) and IRA contributions, itemized deductions and personal exemptions.