Specifically one that allows for 1099 income to be included.
TL,DR: I’m looking for a easy-to-use free online tax software that allows for people to fill out a schedule C in addition to the usual W-2 income. It must also include a free state program and provide the option to print out the final forms as a “file on paper” option at no cost. Reiterating that it must be free.
Background: I teach at a boarding school and many of my students, who are college-aged, perform paid internships that are reported on a 1099-NEC. These kids (like most young adults unfortunately) have no clue how to file taxes. TPTB have elected me to be their go-to person for all things taxes.
Personally I like H&R block’s tax software as it’s very idiot-proof. It would be ideal for these kids. Unfortunately it costs money which is something most of these kids don’t have. Even if they could afford the ~$50 for the software many do not own a laptop.
So what these kids need is what I noted in my first paragraph. A web-based software that they can log into, fill out all their info and wages (many have W-2’s in addition to the 1099), do the same for the state, and then print out the forms and send them in. E-file would be nice but that may be asking too much and besides, learning how to address, stamp, and send an envelope would be good for them – that’s another thing that shockingly few Gen Z’ers know how to do.
The ones I’ve been able to find so far either charge for the state program, charge to print out the completed 1040 form (usually both), or don’t allow for the option of a Scedule C to be filled out.
Does such a rare beast actually exist?
Mods, this may be more of a FQ thread, if so and you deem it must be moved then I bow to your omniscience.
IRS Free File might be the closest thing. Your AGI must be $84,000 or less, but if we’re talking students they almost certainly meet that criteria. Apparently “Some trusted partners include a free state tax return while others may charge a fee.” So they may or may not meet that requirement.
I don’t think anyone allows state for free. Does your state have their own free filing system?
I use FreeTaxUSA and I am almost positive you can go all the way up to the very end, including fully preview-able documents, and not pay. You can’t print the documents as they are watermarked but you can view them.
I actually fill out my state with them and don’t file it, then go to my state site to file for free. I use the FTU document to double-check my work.
FTU also says they do 1099 for free. They say everything under Federal is free. I’ve never had to pay but I don’t have any significant 1099 income or any Schedule C.
You can get an account with them and put in an example person if you’d like. You don’t pay until you actually file. So you can see how it would work for what you’d consider a typical student.
You can have them do up the State forms on FTU and transfer the results to a paper worksheet by hand.
FreeTaxUSA comes really close to what you’re looking for. Federal is always free to file, and to file a state return is $15. There’s usually a discount floating around that will reduce that by a couple of bucks.
It doesn’t matter how many forms you need, the price never changes. I’ve done some more involved returns and never had an issue. I also find it easier to use than TurboTax or H&R Block because they aren’t constantly trying to get you to upgrade and pay more.
Not online, but another option that @bobsmom101 mentioned in another thread is that there are nonprofit orgs that will help people fill out 1099s and Schedule Cs for free, both state and federal, in person.
Well, I can’t help you with 1099 incomes, but I know of 3 different free tax software packages in South Africa.
I was involved in creating one, though because my tax is very straightforward I just let the government do the calculations.
* truely free? Does such a thing exist? All three software packages were free, but if there was any inconsistency, there was a hard sell towards the accountant/lawyer who originally paid for its creation.
They absolutely do. I have never paid a penny to file taxes. TaxSlayer.com is completely free for 1099-NEC and state returns. I’ve used them for the past three years.
Unless I guess if your state doesn’t allow free filing. Mine, New York, does.
I used H&R Block online this year and didn’t pay a penny – and I used it for both federal and state. I have super simple taxes, so it’s possible that use of a Schedule C would require use a version that isn’t free, but just FYI.
If your students are near a VITA or TaxAide site, they can try to make an in-person appointment, though it’s awfully late in the season. The advantages are that both state & federal returns will be prepared and efiled on the spot for free. Yes, we do 1099 NEC, 1099 MISC, and 1099K and you will receive hardcopies of your tax returns.
TaxAide also recommends the “OnLine Taxes” program mentioned by @RealityChuck, but I am not personally familiar with it:
Every government program that benefits “ordinary” people is at risk. I think VITA, TaxAide and FreeFile are safe this year, but once Elon finds out the government is subsidizing them, I expect them to be defunded.
Yet another vote for FreeTaxUSA. I’ve used it for half a decade or so and haven’t paid a penny (no state taxes). It’s $15 if you do, or you can be cheap and do that part separately for free. There’s an addon service that provide some peace of mind additions and free amended returns. They put up a single screen once or twice to tell you about it but don’t really nag you, it’s unobtrusive as it can be. Every form that 99.9% of people use is supported, Schedule C naturally.
H&R Block is generally free too, I used them longer ago when it was semi-free (income limitations) and it was fine. Just don’t use TurboTax, they suck.
I am a VITA volunteer. Our site doesn’t do appointments; all of our clients are walk-in, first come, first served. We are also a bit unique in that we interview a client to make sure they’ve brought all the necessary forms and paperwork, then we send them home. We then prepare and review the taxes without the client being present, then we call them back for final review and filing.
I disagree with this being ‘late in the season’. We started in the first week of February and will end just before April 15. This is, in fact, the peak of the season. We’ve been swamped this week. (Nicer weather has played a prominent role.)
Thanks @Railer13 ! I don’t know much about VITA (and it shows). In my TaxAide region (northern CA), we almost never do walk-ins, and all the sites near mine are full already & into wait-listing clients.
Because they are one of the biggest reasons you can’t file your taxes for free. I used them for years, and their software package is very good, and IMO pricey. But the fact that they make good software doesn’t make them good guys.
Most importantly because they charge gobs of money for a service you can get for free or much much cheaper from somewhere else, and who don’t nickle and dime you because you go 90% through your return and find out you have to pay extra to upgrade your account to generate some obscure form. There’s no “magic” to tax returns, different software won’t find you a better result.
There’s also the lobbying mentioned by @bobsmom101. H&R Block did this too, but are less sketchy with their tax software.
It’s not “TurboTax” so much as it’s one of the brands that parent company Intuit uses, so some “competitors” are still them.