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If your taxes are just W2s, mortgage, and kids, you can ABSOLUTELY do them yourself. I've been using FreeTaxUSA for 3 years now and it costs me $15 for state filing (federal is free). With three kids you probably qualify for some credits too that the software will walk you through. H&R Block is wildly overpriced for simple tax situations. They charge $350+ for what amounts to data entry that you can do yourself in an hour. They don't do anything magical - they use software very similar to what you can buy/use yourself.
Do you need to know all the tax forms and which ones to fill out when using the software? That's what intimidates me - not knowing which forms I need.
You don't need to know any of the tax forms beforehand! That's the beauty of tax software. It asks you simple questions like "Did you own a home?" or "How many dependents do you have?" and then determines all the necessary forms for you automatically. The software fills out all the right forms behind the scenes based on your answers. You'll never need to decide "do I need Schedule A or Schedule C?" - it handles all of that. You just answer questions about your life situation and it does the technical part. It's designed for regular people, not tax experts.
I'm surprised no one's mentioned Credit Karma Tax (now called Cash App Taxes). It's completely FREE for federal AND state, even with mortgage and kids. I switched from paying $200+ to literally $0. Just as easy as the paid options in my experience.
I tried Cash App Taxes last year and it messed up my mortgage interest deduction somehow. Ended up having to file an amendment. Maybe they've fixed it for this year?
I'm a little late to this thread, but I wanted to add that backslash characters are sometimes used in programming for "escaping" special characters. In your tax software, it might be a bug where the program is displaying the escape characters that should be hidden. Different tax software handles special characters differently. If you're using one of the major programs like TurboTax, H&R Block, or TaxAct, you should report this as a bug. They usually release updates throughout tax season to fix these kinds of issues.
Is there a way to do a quick check for these hidden characters across my whole return? I'm using TaxAct and now I'm worried there might be backslashes I'm not seeing.
The best way to check your entire return is to create the PDF preview (usually there's a "Preview" or "Print Preview" option) and then use the search function (Ctrl+F on Windows or Command+F on Mac) to search for the backslash character. Just type \ in the search box and it will highlight any instances throughout the document. TaxAct also has a built-in error checker that runs before you file. While it might not specifically call out backslashes, it should catch most formatting issues that would cause rejection. If you're still concerned, you can also print the entire return and visually scan the fields where you entered text (like name, address, occupation) for any unexpected characters.
I'm having the exact same issue but with forward slashes (/) in my software. Anyone know if this causes the same problems? I noticed them appearing randomly in some of my address fields.
Forward slashes can definitely cause similar problems. The IRS systems interpret them as date separators or division operators in some contexts. I'd recommend removing them from any text fields like addresses. Only use them where they're expected (like in dates formatted as MM/DD/YYYY).
21 Your HR department should be explaining this stuff when you onboard! The withholding system is based on allowances you claim on your W-4. When I started my job in November last year, I just put "0" allowances to be safe and got a fat refund. You can always adjust later.
8 The W-4 doesn't use allowances anymore - they changed it in 2020. Now it's a completely different system with steps for different situations. I was confused too when I started my new job because I was used to the old form.
21 You're right, I completely forgot they changed the form! Shows how long I've been at my current job. I guess the basic concept is still similar though - you give your employer information about your tax situation, and they use IRS tables to calculate the withholding. Thanks for the correction. I should probably review my own withholding sometime soon since I haven't updated my W-4 since before the change.
16 Does anyone know if there's a way to see exactly how the calculation is done? My last employer seemed to take out way more than my current one even though I'm making more money now. Makes no sense and HR just says "it's what the system calculates" which isn't helpful.
2 The actual calculation is in IRS Publication 15-T if you really want to see the math. It's pretty complicated. More likely explanation is that you filled out your W-4 differently at the two jobs, or one employer is using an older version of your W-4. Ask HR for a copy of your current W-4 on file and see if it matches what you remember filling out.
I used Jackson Hewitt online last year for my W2 and 1099-G and had a horrible experience. The interface kept glitching and wouldn't let me go back and correct information without starting over. Their customer service was basically non-existent - waited 2 hours on hold and then got disconnected. I switched to FreeTaxUSA this year and it was much better. They handle W2s and unemployment just fine, and it's cheaper than both TurboTax and Jackson Hewitt. Their interface isn't as flashy but it works smoothly and I got my refund in 12 days.
Did FreeTaxUSA handle state taxes too or just federal? And was that included in the basic price or an add-on?
FreeTaxUSA does federal returns for free and charges around $15 for state returns, which is way cheaper than most other services. The state filing is an add-on but still very affordable compared to the $40+ that TurboTax and others charge. They handle both federal and state unemployment reporting correctly, which was important for me since my state taxes unemployment a bit differently than federal.
Has anyone used the Jackson Hewitt mobile app instead of their website? I usually do everything on my phone and wondering if their app is any good for filing with W2 and unemployment?
I tried their app last year and honestly wouldn't recommend it. Super buggy and kept crashing when I tried to upload photos of my documents. Ended up having to use the website anyway. If you're set on using your phone, TaxSlayer's app worked better for me this year.
Carmen Vega
I know everyone's talking about TurboTax, but have you considered TaxAct or H&R Block? I switched from TurboTax to TaxAct last year for my Schedule C and rental properties and saved almost $50. The interface isn't quite as pretty but it handled everything just as well.
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Zara Mirza
ā¢I'm open to alternatives for sure! Did TaxAct handle all the rental property stuff well? Like depreciation and splitting expenses between properties? I've just been using TurboTax for so long I'm kinda afraid to switch and miss deductions.
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Carmen Vega
ā¢TaxAct definitely handled all the rental property features well. The depreciation calculator is actually more detailed than TurboTax's in my opinion, and I was able to track expenses separately for each property without any issues. You won't miss deductions - if anything, I found TaxAct was more thorough in asking about potential deductions specific to rental properties. The interview process asks about things like travel to inspect properties, home office use for property management, and even partial business use of vehicles for property maintenance. The learning curve isn't bad at all if you're already familiar with tax concepts.
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Andre Rousseau
Don't forget to check credit card offers! I just saw Amex has 25% off TurboTax if you use their card. Chase had something similar. Also if you're a Fidelity or Vanguard customer they often have discounts this time of year.
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Zoe Stavros
ā¢Also check your employee benefits portal if you work for a medium-large company! My employer offers a corporate discount code for TurboTax that saved me like $40 last year, and I had no idea until I randomly checked our benefits site.
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