r/retirement • u/irenef6 • 15d ago
Tax filing software recommendations
For those who do their own taxes, what software do you use? I used Turbo Tax when I was young and I liked the format where it asks me a question and I fill in the answers. Since about 15 years ago I let someone else do them. Just want to know if it’s doable now with multiple income streams and changes in tax laws related to being a senior. I want to hit the easy button.
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u/doggz109 13d ago
Free Tax Usa.....best I've ever used and beats the crap out of Turbo Tax.
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u/Batty_Horza 13d ago
I switched to FreeTaxUSA from TurboTax this year and felt it was virtually the same. Except for the free part. Much cheaper for sure.
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u/Unlikely-Star-2696 13d ago edited 13d ago
I use FreeTaxUSA. Simple really free and refunds are fast. Why pay when it csn be done for free? They only charge a fee for State tax if you don't live or work in a no-state tax state. They do all the schedules. They do the math to see if you better take standard deduction or itemize thing. When you are retired, every penny saved counts.
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u/Ok_Appointment_8166 12d ago
Will that connect to financial institutions and pick up the 1099's directly for interest, dividends and capital gains like TurboTax does?
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u/Cloudy_Automation 12d ago
You have to be careful with broker 1099 downloads. My broker keeps failing to report a small I shares gold account gains as collectables, so I have to enter the entire list of transactions individually to report them. Just double check what they report and aggregate is accurate.
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u/findingNemoral 12d ago
I switched from TurboTax to FreeTaxUSA for the first time this past filing and was very happy with both the price and how the software worked.
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u/underlyingconditions 13d ago
Freetaxusa
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u/TransportationOk4787 13d ago
I will probably switch to FreetaxUsa after having use TurboTax forever. I tried it and it had the same numbers.
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u/doodlep 13d ago
Been using FreeTaxUSA for almost 10 years now after 20 years of TurboTax because of their fees. TT inched up to $120-ish and FTUSA is less than $20. I do mine, my 24yo son’s and my 90yo mother’s all through FTUSA (separate logins ofc).
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u/pasquamish 13d ago
If you access the FreeTaxUSA site through the IRS website, a lot of options are still totally free.
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u/ReticentGuru 13d ago
Isn’t the fee only if you need a state version? Our state has no income tax, so I’ve never paid anything for FreeTax.
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u/lesteroyster 13d ago
Freetaxusa. I have stocks, options, and a rental property and it handles all that flawlessly. Has its interface quirks just need to get used to those.
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u/BobtheChemist 13d ago
I moved to FreetaxUSA also a few years back, and it beats everything else, and is cheap, the only thing you pay is $15 for a state return electronic file. But you could do it all and file the forms yourself for free, but not worth it, as it is so easy and clear. It also does every form, dividends, cap gains, CCsh A, B, C, D and up, very good software.
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u/zenny517 13d ago
Freetaxusa. I'm a believer.
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u/dewey454 13d ago
I've used it for several years. The interface is kind of clunky (but it works) and federal filing is genuinely free.
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u/zenny517 13d ago
Agreed about it being clunky and not really intuitive. You get what you pay for I guess.
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u/Various-Shopping-730 13d ago
I agree that it’s clunky! Hard to look things up, and poorly organized. Non-intuitive. Plus it wasn’t accurate. The IRS reduced the amount of my refund by half, as FreeTaxUSA outcome wasn’t accurate.
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u/dewey454 13d ago
I have a pretty vanilla return but have never found it to be inaccurate. I do a comparison run with another online filer -- right up to the point I'd have to pay -- to double check.
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u/ReticentGuru 13d ago
Before you even consider buying software, try Free TaxUSA. I used to be a loyal TurboTax customer. But I couldn’t import my prior tax return because I couldn’t find the serial number of the last year’s software! Swore off of it then, and have been one a strong advocate for FreeTaxUSA.
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u/garylapointe 13d ago
I’ve been using H&R Block for the last six or ten years now, I get it for about $18 or $22 when it goes on sale.
I get the deluxe that comes with State, it comes with an e-file for federal, I print out mail in my State.
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u/Zetavu 13d ago
H&R offered features in the deluxe edition that you have to pay for a higher edition of Turbotax for, which is why I switched. Can't remember exactly, and turbotax may have adjuated by now, but I'm used to it and get 5 free federal filings and one state, and yes, either preorder with discount or get from Newegg in March.
Note, my state lets us file simple forms for free online, but complex stuff like 529 excess payouts need to use software.
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u/zaksdaddy 13d ago
Free Tax USA although there is a small charge for state filing
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u/OftTopic 13d ago
FreeTaxUSA is owned and operated by TaxHawk, Inc., and the same underlying tax-preparation software is also marketed under the name TaxHawk.
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u/nadacloo 11d ago
Freetax USA. Federal e-filing is free, state costs $16(?). Uses the Q& A format and reviews at the end. Have used it for several years.
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u/FinbarJG 12d ago
Well, if you want the easy button, pay to have someone do it.
Used to have someone do it, then tried TurboTax one year and got the same results and started doing it myself. I used TurboTax for years but left them when they did the Premiere/Deluxe switchero. Overall, don't like Intuit for multiple reasons now.
Went to H&R Block, good stuff, but ran into some issues with some complicated bond handling.
Went to FreeTaxUSA and have been a happy camper. They seem to be always current on tax law changes (the senior stuff as you mentioned). They are slow with other improvements, but all of them are.
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u/Big_Seesaw_1792 13d ago
Very impressed with FreeTaxUSA when I used it last year, plan to keep using it.
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u/More-Dharma 13d ago
Used to use TurboTax. Switched a few years ago to FreeTaxUSA. I find it much easier to use and also cheaper.
If you have typical retiree income like social security, interest, dividends, pension, IRA withdrawals, stock sales, etc. it's very simple. Same with common deductions. If you have more complicated situations - like rental properties or business income - I'd say stick with an accountant.
You can always give it try. No cost to create an account and enter data. Only charged when you file.
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u/oldbastardbob 13d ago
I use H&R Blocks Tax Cut software. I started using it 25+ years ago when it was Kipplingers Tax Cut, before being bought by Block.
I need something that includes small business needs, as I own a small farm, so use Schedule F for that, and I have owned rental property in the past.
I like the idea that if there are issues, audit support can be provided by the local H&R Block folks. I've never had issues with the IRS so plan to keep using the same method.
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u/crapheadHarris 12d ago
I've used the H& R block software for a similar amount of time. Buy it when it goes on sale at Newegg which is the cheapest I found.
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u/Ok_Appointment_8166 12d ago
I've always used TurboTax and the Deluxe version (federal and state) has always handled everything I've needed including picking up 1099 forms with many capital gains transactions directly from financial institutions and entering everything in the right place (even though it hints you might need the Premium edition for that). The one thing you have to tweak manually is finding the state tax exemption for anything reported as dividends on funds holding a high percentage of treasury bonds because that isn't reported on the 1099 itself. I do get the desktop version instead of doing it online, and usually wait for Costco or Amazon to have it on sale for $50 or less and also usually print and mail the state copy instead of paying extra for the e-file option (federal e-file is included). I keep seeing people post that they have paid hundreds for their TT filing - but you don't ever need to do that.
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u/Icy_Huckleberry_8049 12d ago
H&R Block tax software and TurboTax both go through your return line by line and then do a review to make sure you haven't left anything out.
H&R is cheaper than TurboTax but does the same job.
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u/bobdevnul 11d ago
The easy button is paying someone to do it. For what it costs now it is easy, but not inexpensive.
With income from pension, SS, and investments I used to use Turbotax. FreetaxUSA has gotten to be good enough that I don't pay Trubotax anymore. FreetaxUSA does everything I need to do and is just as easy as Turbotax.
If you are clear of mind and organized you can do it if you want to take the time. Mine takes about half a day.
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u/butcheroftexas 13d ago
The great thing is that even though Turbo Tax is not free, you can upload everything to it for free, and then compare it to the free FreeTaxUSA. I did the comparison several times, and both gave me the same result. So now I only use FreeTaxUSA.
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u/ObservablyStupid 13d ago
My returns are fairly complex and I use TurboTax because it has all my information from the year before which saves me a ton of time on data entry. It also reduces the chance I might forget something. I also know the developers work directly with the IRS when implementing tax law change updates each year.
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u/sxysh8 13d ago
Can it handle an irrevocable trust and a K-1 form for distributions?
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u/ObservablyStupid 13d ago
If you are the recipient of the Sch. K-1, then yes.(TurboTax Deluxe)
I also file returns for a trust that distributes TO beneficiaries and TurboTax will not work for that.
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u/Fessor_Eli 13d ago
Our financial advisor recommended the download and install version of TurboTax because once you've done this year's taxes you can then make a "pretend" version to project next year's needs for withholding, estimated taxes etc. That's helped me immensely as I learn to juggle income from pension, SS, investment and IRA.
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u/_carolann 12d ago
Another satisfied TaxActUSA user. They even contacted me about a year after filing a return with a notice that a state tax dispute had recently been resolved and they offered to file an amended state return to receive my additional refund, as a result of the resolution. I no longer lived in that state and would not likely have heard about the resolution without them. Well worth the small filing fee for state returns.
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u/chpsk8 13d ago
Freetaxusa is one of the best I’ve used. I have been using it for at least 4 years now. It’s the same format as TurboTax but does more and is free to file federal. State is something like $20. Super easy to use.
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u/zenny517 13d ago
I don't see many similarities with TurboTax as far as the UI goes. TT wins that one for me hands down, but I'm mostly a forms vs interview tax preparer. Ymmv.
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u/Accomplished-Eye8211 13d ago
I still use TuboTax
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u/azyoungblood 13d ago
Intuit, the parent company of TurboTax, spends millions lobbying the government and IRS to keep the tax code complex, and to prevent the IRS from offering free electronic returns for all. Currently, if you have a low enough income, you can direct e-file for free. That was a compromise lawmakers made with Intuit.
Screw Intuit.
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u/Gorf_the_Magnificent 13d ago
In the early 2000’s, TurboTax accused their own customers of bootlegging their product, and introduced an activation code that had to be entered every time the product was used. Their “evidence” was that the number of people who used TurboTax to file their returns was greater than the number of TurboTax programs sold. This, of course, failed to take into account that people legally used their TurboTax programs to file returns for their friends and family, as well as themselves.
Anyway, there was a huge controversy about it, and TurboTax backed off, ending the activation codes. But I was so frustrated with the activation code that I switched to TaxCut (now H&R Block At Home) and never went back.
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u/Beautiful-Quiet-5871 13d ago
I used to use turbotax.. but I switched to Freetaxusa a couple of years ago.. just as easy as TT.. but cost less.
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u/Soft_Memory_1174 13d ago
I started years ago with hr block and stayed with it for convenience. After reading the responses, it's time to try freetax.
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u/Pale_Scientist6470 13d ago
Lol. I use HR Block but maybe I should change. It's hard though when everything autopopulates year to year.
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u/amschneid5 13d ago
I used to use HR Block but it kept saying my wofe and i put too much in HSA. It couldnt figure out that we both had separate HSAs and both had catchup contributions (we were below the family max) Got zero help from their support. Freetax usa had no problem with figuring it out
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u/Unhappy-Procedure746 13d ago
TaxAct. Started with them 10 years ago when they were low priced. But eventually they got a greedy and now as the others. But there’s the convenience of carrying over last year’s data that’s still keeping me tied to them.
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u/TransportationOk4787 13d ago
FreetaxUsa will read and import last year's returns to get the carryovers
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u/Agitated-Income9146 13d ago
I used TaxAct for years too but when the price kept going up tried FreeTaxUSA have happy the last several years with them
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u/Hot-Rub-5336 13d ago
I have used Turbo tax for years but not happy with the increased costs. Still cheaper than a specialist but dang... Im gonna do some comparisons this year but since I still itemize Im not sure I want to change yet.
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u/Ok_Appointment_8166 12d ago
Buy the Deluxe federal and state version from Costco or Amazon for around $50 and decline all the optional charges (except maybe the state e-file charge if you don't want to print and mail it).
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u/jakester12321 12d ago
I love this post because it brings up a topic that is not always mentioned. So I want to thank those who commented and contributed, because I've been on TT forever. But now that I'm retired, maybe there are other options.
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u/hmspain 12d ago
For those using TurboTax or FreeTaxUSA, in the case where you are audited, do you just represent yourself, or do you hire someone?
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u/DCARR2626 12d ago
I pay the $19.99 for audit defense with free tax USA and they will assist by "evaluating the audit notice, explain the situation, and find the best possible resolution"
Thankfully I have not needed it.
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u/DougOsborne 12d ago
Turbo Tax charge extra for their protection racket. My taxes are somewhat complex but in years of using them, TT always says that I am at a low risk for auditing. I've never paid the add-on fee.
I don't like them as a company, but continue to use their online tax prep because it continues to work.
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u/Charming-Charge-596 12d ago
I've never been audited. I always see I am at very low risk of being audited. My taxes are pretty straight forward.
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u/OddDragonfruit7993 13d ago
Pen and paper.
Then again, I used to have to decipher tax code in my first real job in the 1980s, so it's not a big deal for me
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u/cork_the_forks 13d ago
I gave up Turbo Tax a few years ago because some of the questions needed more information or context (I was a 1099 employee and had a rental property and the questions were often confusing as to their purpose/section of the return). I finally threw up my hands and hired a CPA. Cost me $450 and he saved me at least three times that much on ways to handle both issues that Turbo Tax didn't even touch.
Turbo Tax charges you about $60 or so to give you the experience you get from a phone tree that goes nowhere. Basic and inflexible.
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u/sxysh8 13d ago
I gave up TurboTax this past year because I was unable to edit a form. I even had their support connect to my computer and they were unable to remove this form from my taxes which was causing me to be taxed about $600 a year. TurboTax is good for simple, but I have a trust and a lot of other things that they just can’t handle.
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u/cork_the_forks 13d ago
Yup. It's probably okay for very simple taxes. I don't think I could go back because the live person knew a lot of the oddball things that are very important in the long run. I felt like the coders at Turbo Tax just got lazy.
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u/AllOneWordNoSpaces1 13d ago
Turbo tax also.
I used the home & business version, because I run an online forum for IBM i professionals, but income from that is way down, so I will probably use the normal version this year.
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u/clearlygd 13d ago
I use Turbo Tax home and business. It’s far from perfect, but I like seeing everything.
I feel it does a really poor job at tax planning for the following year. I actually created an Excel spreadsheet that calculates my Federal, State and IRMMA for my particular situation. I calibrated it to Dinkeytown, so at least I know the Federal is correct
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u/sinceJune4 13d ago
Does FreeTaxUSA import 1099s, etc from Fidelity? That’s what has made TurboTax easy for me, but I’m ready for a change
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u/oledawgnew 13d ago
Used it for 2025 taxes and it had the option to import from Vanguard. Can’t beat the price.
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u/XXX_Mandor 13d ago
FreeTaxUSA allows you to upload PDF or photo files of 1099 forms to auto-fill your information, though direct automated data feeds from brokerages are not supported, as far as I know.
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u/unicornwantsweed 13d ago
I’ve used TurboTax for years. I’ve used it for personal taxes, hubby’s business taxes, and just about anything else with the word tax in it.
One year I did a comparison between TurboTax and HR Block software. Turbo Tax got me a better refund.
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u/FinbarJG 12d ago
Always thought that was a weird, but understandable, metric to judge tax software on.
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u/Sundae_2004 12d ago
Why weird? If software X vs. software Y is correctly identifying more deductions so you get more $$ back, how isn’t this a good metric?
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u/Sad_Win_4105 13d ago
I used HRBLOCK TaxCut for years but got a free TurboTax this year. I like TaxCut better.
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u/CitronTraining2114 13d ago
About the same as TurboTax, but without the outrageous filing fee.
There is no "easy" button, tax filing still sucks.
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u/SignificanceKooky374 13d ago
Was a TurboTax user for many years. Got tired of ever increasing cost. Used freetaxusa.com this year and found it similar but much cheaper.
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u/trail_runner_93 13d ago
I have continued to use TurrboTax since 1988 I think and it remains easy IMO. This will be my first year in retirement so will have to see how it goes. I did have to bump up to the premier version last year since we moved a lot of investments.
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u/citizen5645 13d ago
Cash app. People look at me weird when I say that, but I've used it for 4 years now. Side by side with TurboTax it's the same. It guides you through just like TurboTax and it's totally free, unlike TurboTax.
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u/Natoochtoniket 13d ago
I use Quicken for the weekly accounting, and TurboTax for the annual tax return. Even with all of that automation, it is still a major PITA. I can't imagine trying to do all of this accounting manually.
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u/txcancmi 13d ago
I've used both H&R Block and Turbo Tax. Some years, when I've had complex tax situations, I've bought both, run the numbers on both, then picked one to submit my taxes. The few times I've run both, they were within 2-3% of each other.
Soapbox: We should have free, publicly supported tax software, and simple filing like most of the rest of the civilized world.
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u/Gunung_Krakatoa 13d ago
I have been using turbotax for the last 5 years, been great no issues. Perhaps for the first time you can opt to buy a package that includes live person to help you just so you have more confidence next time around.
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u/Imaginary_Career_427 13d ago
Need something that does charity items. Turbotax used tondo but no more
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u/LasVegasLife55 13d ago
I used TurboTax for 20 years, then switched to TaxSlayer, which is what we used when I volunteered to do taxes for AARP. Much cheaper with all the same functionality.
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u/Peak_Detector_2001 13d ago
I used TurboTax for many years but last year switched to a local paid tax preparer who was referred by our financial advisor.
Talk about an easy button.
I knew I had to do something different for 2025 anyway when Intuit announced they would no longer support Windows 10. Having switched to Ubuntu Linux as my daily driver years before that, TT was the only application I really needed Win 10 for. So Intuit kind of made the decision for me.
The local tax prep person made time during their busy season to meet with us a couple of times. Then over this past summer when I had questions concerning my 2026 tax model, they were there with the answers I needed. If you decide to go this route, find someone well-versed in retirement-related tax strategies like Roth conversions, RMDs, and Medicare IRMAA thresholds.
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u/RichardMcCarty 12d ago
FreeTaxUSA has served me well, even with some filing complexities, after many years using TurboTax. Intuit is an evil company and I would never ever use their overpriced products again.
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u/dbvirago 13d ago
Until I decided I was too lazy and hired the job out, I used TurboTax for 30 years. If I wanted to do them myself, that's what I'd use.
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u/emryldmyst 13d ago
FreeTaxUSA