Many top tax prep companies have a free tier for filers with a simple tax return, the most basic version you can file.
A simple return is typically prepared using IRS Form 1040, with income from a single source. Other aspects of a simple return include:
- W-2 income
- You are reporting limited interest and dividend income or unemployment income
- You may be reporting unemployment income
- You may be claiming the earned income tax credit or the child tax credit
- You may be deducting student loan interest
All of CNBC Select’s best tax software programs have a free tier that is generally available to taxpayers filing a simple tax return, including TurboTax and H&R Block.
If you have freelance or self-employment income or need to itemize your deductions, you'll probably have to file a complex return. Most tax software companies require filers to pay for a complex return, although
Cash App Taxes is a standout in that you can file state and federal tax returns with a variety of tax schedules.
Cash App Taxes
Online plan
One free plan for federal and state taxes, both simple returns and with multiple 1099s (e-filing for Montana is not available). Click "Learn More" for details.
Guarantees
Maximum refund and 100% accuracy guarantees
Live support
No
Tax refund advance loan
No
Read our review of Cash App Taxes
Terms apply
Pros
- Completely free
- Audit defense if the IRS audits your tax return
- Can get refund five days earlier if deposited in Cash App account
Cons
- No support from tax professionals
- Most information must be input manually
- Can't file returns for multiple states
Simple tax returns FAQ
What is a simple tax return?
There's no official definition of a simple return, but typically it involves reporting income from a single source on an IRS Form 1040 and taking the standard deduction. You can claim a limited number of tax breaks and still file a simple return, including student loan interest and the child tax credit.
Can I file for free if I don't have a simple return?
Most tax software programs have a free tier, but it's limited to taxpayers filing a simple tax return. Cash App Taxes is a standout in that you can file state and federal tax returns with a variety of tax schedules.
What is a complex return?
Typically, you'll need to file a complex return if you meet one or more of these criteria.
- You receive self-employment or freelance income
- You own a small business ownership
- You have rental property income or Investment earnings from stocks and bonds
- You're Itemizing your deductions
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