TurboTax users, many of whom rely on the software to file their taxes annually, have an unpleasant surprise this spring.
Intuit-owned TurboTax is no longer a part of the IRS Free File program for the first time in many years, according to Nasdaq.
As part of the Free File program, the government and a number of tax prep services are teamed up to allow users to prepare their federal tax returns online for free.
The Free File service is notoriously under-utilized, but it usually comes with offers from recognizable names, like TurboTax.
But today, that has changed to the opposite. No more free filing on TurboTax again.
Why IRS Free File Program No Longer Includes TurboTax?
TurboTax announced last July that it would not renew its partnership with IRS Free File because of its limitations and “conflicting demands from those outside the program” that prevented it from continuing to participate while providing “all of the benefits that can help consumers make more money, save more, and invest for the future.”
Nonetheless, the company said it would not give up on offering free tax filing options.
In the last filing season, TurboTax processed about 17 million free tax returns, of which only 3 million were through the Free File program.
“Moving forward, Intuit is committed to continuing to offer free tax preparation while accelerating innovation to address all of the consumers’ financial problems,” it added.
Several years ago, TurboTax was criticized for hiding its Free File page from Google results, as reported by ProPublica. As a reaction, the company changed its code later.
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How to File Taxes with TurboTax for Free
TurboTax still offers free options even though it no longer participates in the IRS Free File project.
You can file for free with TurboTax – but you must meet a number of requirements.
There is a free version of Turbo Tax-Free Edition, TurboTax Live Basic, and TurboTax Live Full Service Basic right now – for simple returns. (In TurboTax, “simple” means “Form 1040 only.”).
This includes W-2 income, limited interest income, dividend income, standard deduction, earned income tax credit, child tax credit, and student loan deduction.
You’ll probably need to upgrade if your taxes are complicated, concerning items like unemployment income, stock sales, and rental properties.
It is possible to file one federal and one state tax return without charge if your situation is moderately simple.
However, you need to act quickly.
Tax experts will do your taxes for you when you use TurboTax Live Full Service Basic – but only for a limited time — Feb. 15.
Through March 31, TurboTax Live Basic provides live, on-demand expert assistance for free.
According to a news release, TurboTax Free Edition will be available throughout the tax season for people who want to do their own taxes.
Tax filing deadlines for most Americans this year are April 18.
With Other Services, You Can File Taxes For Free
TurboTax isn’t the only service that recently dropped out of IRS Free File. A company, named, H&R Block, left the program in 2020
Despite this, IRS Free File is still going strong.
Tax Slayer, FileYourTaxes.com, and TaxAct all offer free tax preparation if your adjusted gross income is $73,000 or less.
Those who earn more than that qualify for free fillable forms (but they must be filed by themselves).
Most tax experts suggest filing early to avoid software problems, refund delays, and identity theft.
So, don’t delay if you want to help yourself.