Free Tax Software

January 23, 2007

Here is a list of potential free copies of tax software to use:
1) Free Taxcut Basic (Federal Only) in mail. I received a CD in the mail a few weeks ago from H&R Block that contained a free version of Taxcut Basic (Federal Only). Once you pop the CD in, it suggests you upgrade to the premium version with state tax preparation; however it will let you install the full Basic Taxcut.
2) Free or discounted Turbotax. If you are a Vanguard Flagship customer its free!
3) State Farm - Offering free tax software for customers.
4) Free tax software based on family's income level.
5) Free Taxcut Basic (Federal, Download only) at Download.com
6) Free TaxAct. A lesser known software that has a basic version that has been offered for free for several years.

Other tax preparation tips:
1) If you have some knowledge of your taxes then don't bother upgrading to the "premium" tax software - the only difference in the upgrade is extra instructional videos in how to deal with things like rental property, capital gains, small business, etc. The basic versions of the tax software will still let you fill in this material in your taxes.
2) Don't use e-file, instead mail your tax forms. I read in Deduct It! that the IRS only gets about 40% of paper returns transcribed into electronic format - this reduces the amount of data the IRS has to look for audit flags. If your rationale is your big refund check will be delayed and "time is money" then change your witholding so that you aren't due a big refund.
3) Don't even think about signing up for a "refund loan" from a company such as H&R Block. I assume 99.99% of people who read this, know this. For the 0.01% that don't - forget it; waste of money!

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Comments (6)

Thanks for the info

Im a Vanguard Flagship customer and I was not aware of it.

Posted by moneymonk | January 23, 2007 11:59 AM

I'm really kind of shocked that H&R Block is offering this refund loan thing. In my mind, H&R Block is a reputable tax firm; I don't understand why they're offering 'easy loans' like a shady, exploitative payday loan joint. I think it's bad business.

Posted by Wendy | January 24, 2007 8:08 AM

I've used taxAct for 4 years and think it's great. Very intuitive - you can either answer questions or even fill out forms directly (which I've only had to do once with a tricky adoption credit carryover for two kids)

Posted by Anne | January 24, 2007 12:13 PM

There was a free promotion handing out HR Block's TaxCut Basic(fed only) on the street corner in downtown Charlotte. I'll use it for my federal taxes, but to file NC state taxes, its asking for $29.99. It'd be convienent b/c of the auto-fill function but I think I'll shop around.
Know of any good deals on state tax software?

Posted by CF25 | January 24, 2007 4:28 PM

TaxCut Federal and State (to the best of my knowledge) can be used by members of the military and their dependents through this website I found. It basically is an online application that works a lot like the desktop standalone version of TaxCut.

http://www.moneymatics.net/2007/01/18/taxcut-for-free/

Posted by Joshua | January 29, 2007 6:00 PM

I have used TaxCut last 3 years.....I have no problem with it....It is very intuitive.....!

Posted by Henry | March 5, 2008 2:09 AM