FreeTaxUSA 2025 Features – All Tools, Forms & Deductions

FreeTaxUSA is one of the most powerful low-cost tax filing platforms available in the U.S. for the 2025 tax season. While the platform is best known for its free federal filing, many taxpayers are surprised by how feature-rich it actually is.

In this guide, we’ll cover all FreeTaxUSA 2025 features, including the tools it offers, IRS tax forms supported, income types, credits, deductions, and filing options—so you can decide if it’s the right tax software for you.

Even with its $0 federal price, FreeTaxUSA delivers a complete professional-grade tax filing experience.

Key Built-In Features:

• Free federal e-filing

• Step-by-step guided tax interview

• Automatic tax calculations

• Free PDF downloads & printing

• Free amended federal returns

• 7 years of return storxage

• Secure login & data encryption

• IRS-approved electronic transmission

• Import prior-year tax data

• Free tax extension filing (Form 4868)

FreeTaxUSA supports nearly every common income category used by U.S. taxpayers:

🔹 Employment & Wage Income

• W-2 (Employees)

• Tips, bonuses, multiple jobs

🔹 Freelance & Business Income

• 1099-NEC / 1099-MISC

• Schedule C (Small Business)

• Business expenses

• Home office deduction

• Vehicle & mileage deduction

• Advertising, supplies, insurance, software

🔹 Investment Income

• 1099-INT (Interest)

• 1099-DIV (Dividends)

• 1099-B (Stock & crypto sales)

• Capital gains & losses

• Wash sales support

🔹 Rental & Property Income

• Schedule E (Rental income)

• Depreciation

• Mortgage interest

• Repairs, HOA fees, property management

🔹 Retirement & Benefits

• 1099-R (Pensions & IRAs)

• Social Security benefits

• Unemployment income (1099-G)

FreeTaxUSA supports 900+ federal and state tax forms, including:

• Form 1040 (Main Individual Return)

• Schedule A – Itemized Deductions

• Schedule B – Interest & Dividends

• Schedule C – Business Income

• Schedule D – Capital Gains

• Schedule E – Rental & Royalty Income

• Schedule SE – Self-Employment Tax

• Form 8863 – Education Credits

• Form 2441 – Child & Dependent Care Credit

• Form 4562 – Depreciation

• Form 8949 – Investment Sales

• Form 6251 – Alternative Minimum Tax (AMT)

FreeTaxUSA allows taxpayers to claim nearly all major IRS tax credits, including:

• Child Tax Credit

• Additional Child Tax Credit

• Earned Income Tax Credit (EITC)

• American Opportunity Credit

• Lifetime Learning Credit

• Saver’s Credit (Retirement)

• Child & Dependent Care Credit

• Energy-Efficient Home Credits

• Electric Vehicle (EV) Tax Credit

• Premium Tax Credit (Health Insurance)

FreeTaxUSA supports both standard and itemized deductions, including:

Itemized Deductions:

• Mortgage interest

• State & local taxes (SALT)

• Charitable donations

• Medical expenses

• Casualty & theft losses

Above-the-Line Deductions:

• Student loan interest

• HSA contributions

• Traditional IRA contributions

• Self-employed health insurance

• Educator expenses 

FreeTaxUSA includes helpful built-in tools such as:

• Automatic error detection

• Missing deduction alerts

• Real-time refund tracking

• Prior-year comparison

• Smart deduction suggestions

• Free extension filing

• Audit warning indicators

Your data security is protected with:

• 256-bit encryption

• Secure account login

• Identity verification

• Encrypted PDF storage

• IRS-compliant transmission protocols

Although state filing is paid, FreeTaxUSA supports:

• All U.S. states that require income tax returns

• State-specific credits & deductions

• Auto-transfer from federal return

• Electronic state filing

• Direct deposit for state refunds

While powerful, it does have limitations:

• No Form 1040-NR (Nonresident Alien)

• Limited foreign income support (Form 2555 not available)

• No built-in live CPA/accountant consultations

• No complex multi-entity corporate returns

FreeTaxUSA is ideal for:

• W-2 employees

• Freelancers & gig workers

• Small business owners

• Crypto & stock traders

• Rental property owners

• Students

• Retirees

• Families claiming tax credits

Yes. FreeTaxUSA offers one of the most complete free federal tax filing platforms available in 2025. Despite its $0 price for federal returns, it delivers:

• Full business support

• Advanced investment reporting

• Rental income tools

• Hundreds of supported tax forms

• Powerful deductions & credit handling