Intuit, the parent company of TurboTax, the tax filing software, recently announced that it would be ending its participation in the IRS Free File Alliance.
Many American taxpayers have relied on TurboTax’s free tax filing services for around 20 years, so this is a surprising move by Intuit. The program is still available to 2020 filers with an adjusted gross income of $72,000 or less.
Below, we’ll discuss why TurboTax retired their free tax filing program and outline some other ways of filing your taxes for free in 2022.
TurboTax Exits IRS Free Tax Filing Program
In a company blog post, Intuit explains that there were certain restraints on the free tax filing program, which is one reason why it will no longer participate in the Free File Alliance.
Intuit says in the blog post that due to outside, conflicting demands, it will no longer be able to offer its customers the full benefits of the program. The company believes that no longer participating in this program, it will be able to provide more financial benefits to Americans during tax season.
For many people, their refund check is often the biggest check they receive all year. Intuit will likely develop more innovations to help Americans of all income levels achieve financial independence, increase their income and solve their biggest economic challenges.
In addition to Intuit’s departure from the Free File Alliance, it’s reported that H&R Block left the coalition in 2021. This means the future of the Free File Alliance is uncertain and may not be available in the foreseeable future.
Intuit’s move could leave Americans, especially young people in their early 20’s, struggling to reach their financial goals — but Intuit will continue to offer a Free Edition of its service. New tax laws, such as the NYS 2021-2022 budget legislation, may cause taxes to rise for some Americans.
How to File Your Taxes for Free
Generally speaking, it’s not the end of the world that TurboTax exited the IRS free tax filing program. There are a handful of other ways you can file your taxes for free. Let’s explore some of them below.
IRS Free File
You can easily file your taxes for free using the IRS Free File system. It’s safe, free and easy to use. Keep in mind, however, it’s only free for your federal tax return. You can opt for guided tax preparation or use free fillable forms to complete your tax return.
The H&R Block free tax filing service includes features such as easy W-2 importing, child tax credits and easy switching when you have last year’s tax return. You’ll also be able to see a real-time update regarding your refund.
Cash App Taxes
The Cash App Taxes, once known as Credit Karma Tax, is 100% free. The service guarantees the highest return, accurate calculations and free audit defense. Most users of this program only spend a few minutes filing their taxes, which can be beneficial if you run on a tight schedule.
TaxSlayer offers a free tax filing service for simple tax situations, including one free federal and one state return. Everyone using TaxSlayer’s free service gets free, unlimited phone and email support, so if you ever run into any issues, customer service will be there to help you out.
You can use more online resources to file your taxes for free. Still, the services listed above are viable and should work well for most American taxpayers.
Prepare to File Your Taxes for Free
It shouldn’t cost an arm and a leg to file your taxes online. Thankfully, free tax filing services are available that are simple and easy to use. Consider using one of the free options above, and remember that even paying a small amount to have your taxes prepared is well worth it in the long run.
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