Woman saves $2,371 using FreeTaxUSA over TurboTax

Filing taxes in the United States can be hard and confusing. Many people struggle with the process, which is often seen as complicated compared to other countries where the government handles more of the filing work. Recently, Caroline Rendon, a content creator, shared her experience in a viral TikTok video. She discovered a huge difference in tax amounts when comparing TurboTax with another service called FreeTaxUSA. Rendon had used TurboTax last year and expected it to be simple again this year. However, she faced issues connecting her QuickBooks account. After switching to FreeTaxUSA, she found a significant difference in what she owed. TurboTax said she owed about $3,037, while FreeTaxUSA calculated her debt at only $2,058 and said she would receive a refund of $1,392. This resulted in a $2,371 difference. In her video, Rendon expressed frustration with TurboTax's fees, which would have cost her $273. In comparison, FreeTaxUSA only charged her $15 to file her state return. She questioned why there was such a drastic difference and called the tax system a scam. Filing taxes can be expensive and time-consuming, especially for business owners. Many citizens opt for professional help or easier platforms to avoid confusion. The IRS also offers free filing options for those who qualify. In the past, TurboTax has faced criticism and legal issues for allegedly misleading users into paying for services that should be free. Several states have looked into these practices, resulting in a settlement that saw affected users receiving compensation. Commenters on Rendon's video praised FreeTaxUSA, noting it is user-friendly and surprisingly recommended by the IRS, while TurboTax is not. The conversation around tax filing continues to spark interest as many seek more affordable and reliable solutions.