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Other Services We Want to Test
There are numerous online tax services, and we want to do the heavy lifting for you. We plan to test more tax services, and here are some that have caught our attention:
Cash App Taxes: A mobile finance tool similar to Venmo, Cash App has free federal and state filing and free audit defense if you received a 1099 from work, a bank, or anywhere else. Plus, it’s geared for people who use Cash App a lot, with free filing for people who are self-employed, have a side gig, do contract work, or own a small business. However, it doesn’t cover every state, so you’ll have to check if yours is included. You can do your taxes through your computer or phone, but it’s definitely more geared toward a mobile audience, where you can snap a photo of your W-2 within the phone app. Online reviewers have reported that it also doesn’t have as much support as many comparable services, and there is no expert tax help available if you need it. It’s missing many forms and tax topics, so it’s best for W-2 employees. Cash App will also deposit your refund faster if you choose to deposit it in your Cash App account rather than the bank. This is a good option if you already use Cash App and your taxes are extremely straightforward.
Liberty Tax: You can snap pictures of your tax documents and have an expert file your taxes remotely, or file your own taxes online. It offers three packages based on need. Basic starts at $48 and supports forms 1040 and 8853 and schedules A and B. Deluxe starts at $68 and supports forms 1040, 4562, 8829, 4136, 8839, 8853 and schedules A, B, and C. The Premium, most expensive tier, starts at $88 and is geared toward self-employed folks like freelancers but doesn’t list 1099 as a supported document, which gives me pause since it’s the most commonly used form for self-employed contract workers.
TaxSlayer: After reading reviews, this seems to be a solid budget tax software. It offers cheap packages and includes all forms, deductions, and credits at its lowest price tier. This service is still very cheap, considering freelancers are charged the most for filing, since their taxes are typically the most complicated. Package prices vary from $0 to $53 plus state if you’re self-employed, and price depends on how much help you require from a tax expert. If you have a simple filing and don’t need to claim any dependents or tax credits, it may work for you, but TaxSlayer is strict with income limits and filing status restrictions.
Different Types of Tax Services
This blanket statement will apply to everything here: You will need to keep in mind what tax documents you have, including various factors like filing status (e.g., married or single), assets, and investments. I’ll be honest, if you have a complicated tax situation or a huge gross income with many investments, I’d advise you to file with an expert. For most of these tax services I tested, they will just file a simple 1040 return for you, with additional filings for additional costs. The majority of online tax services also offer extra assistance from tax preparers.
What You’ll Need on Hand
Be sure to gather all tax documents, including W-2s or income reports, health insurance information, education-related tax documents, and any other tax or financial documents relating to purchases or payments on motor vehicles or property. I also had receipts for transactions related to my freelance writing on hand for expensing purposes. If you are using a new service this year, you’ll also want last-year’s return in order to transfer any relevant information.
When Do You Need to File an Extension?
For individuals, if you feel you can’t get your state and federal taxes filed by April 15, you’ll need to file an extension by tax day (April 15). This extends your filing deadline to six months later: October 15, 2026. Whether you got an extension or not, you may be asked to pay penalty fines and interest on any unpaid balance (more on that below).
What Happens if You Can’t Pay the Full Amount?
As someone who regularly owed more than $10,000 in taxes every year thanks to freelance writing, here’s where my expertise comes in. If you can’t pay the full amount, you’ll most likely want to set up a payment plan with the IRS to pay in increments over the year. If you didn’t file for an extension (and owe taxes), you can face a late-filing penalty of a percentage of the unpaid tax (for late filing and late payment). The government also charges interest on unpaid amounts, which varies depending on your amount and time owed. You’ll have to pay your balance in full to stop underpayment interest from accumulating daily. If you’re a gig worker who consistently owes money, I’d definitely start up a quarterly payment plan at the beginning of the year with the IRS to break up the amount, so you aren’t hit with $15,000 owed by April 15 like I was last year.
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