Is FreeTaxUSA Really Free for Federal and State Taxes in 2025?

The short answer: FreeTaxUSA is genuinely free for federal tax filing, but state tax filing is not free in most cases. However, compared to competitors like TurboTax and H&R Block, FreeTaxUSA is still one of the cheapest and most transparent tax software options available. 

Yes — Federal filing is 100% free

FreeTaxUSA allows users to file federal tax returns at no cost, regardless of:

• Income level

• Filig status

• Number of forms

• Type of income

Federal Forms Included for Free

FreeTaxUSA supports nearly all major IRS forms, including:

• Form 1040

• W-2 income

• 1099-NEC / 1099-MISC (freelancers & contractors)

• Schedule C (self-employed)

• Schedule E (rental income)

• Schedule D (capital gains)

• Child tax credit

• Education credits

• Retirement income

• Itemized deductions

1. Deluxe Upgrade – $7.99

Includes:

• Priority customer support

• Live chat assistance

• Audit assistance

• Unlimited amended returns

Not required to file taxes

2. Refund Transfer Fee

If you choose to:

• Pay fees from your refund instead of upfront
  You may be charged a refund processing fee by the bank partner (not FreeTaxUSA itself).

Avoid this by paying fees upfront.

3. Professional Support (Optional)

Some users may see offers for:

• CPA or expert assistance
  These are completely optional.

This is where FreeTaxUSA really stands out.

No charge for:

• Federal filing

• Self-employed income

• Multiple tax forms

• Itemized deductions

• Capital gains

• Dependents

• Amendments (basic)

Many competitors charge extra for these features, even on paid plans.

Why FreeTaxUSA Is Cheaper Than Other Tax Software

FreeTaxUSA keeps costs low by:

• No physical offices

• Minimal advertising spend

• No aggressive upselling

• Simple, web-based interface

You’ll pay nothing if:

• You only file a federal tax return

• You don’t choose Deluxe or paid add-ons

• You pay fees upfront (if filing state)

This makes FreeTaxUSA ideal for:

• Students

• First-time filers

• Single W-2 employees

• Freelancers filing only federal returns

You’ll pay if:

• You file state taxes

• You want Deluxe support

• You choose refund transfer payment