FreeTaxUSA's biggest frustration isn't what they charge for - it's the hours they'll cost you in manual data entry. While TurboTax and H&R Block can import your 1099s, investment statements, and business forms with a few clicks, FreeTaxUSA makes you type in every fucking number by hand.
What Actually Imports (Spoiler: Not Much)
W-2 Forms: Works perfectly. Upload a photo or scan, and FreeTaxUSA pulls the data accurately. I tested this with W-2s from three different employers and had zero issues.
Previous Year Returns: Upload your prior year PDF and FreeTaxUSA pre-fills your personal info. Saves maybe 5 minutes max, but better than nothing.
Everything Else: Type it yourself. Every 1099-INT, 1099-DIV, 1099-B, Schedule K-1, business expense - you're manually entering data that other platforms import automatically.
The Real Time Cost
Here's the brutal math: importing my investment accounts from Vanguard took 5 minutes in TurboTax. The same data required 45 minutes of manual entry in FreeTaxUSA, cross-referencing three different 1099 forms and double-checking every transaction.
For a simple return with just W-2s and standard deduction? FreeTaxUSA is faster than TurboTax. But add any complexity - rental property, side business, multiple investment accounts - and you're looking at 2-3 extra hours of data entry.
Where Manual Entry Bites You
Cryptocurrency Transactions: If you've got more than a handful of crypto trades, prepare for pain. TurboTax connects to Coinbase, Robinhood, and other major exchanges; FreeTaxUSA requires you to calculate and enter each transaction's cost basis manually. I counted 47 individual entries for what TurboTax handled with one import. Consider using specialized crypto tax tools like Koinly or CoinTracker to generate the necessary reports first.
Multiple 1099s: Freelancers and contractors with 5+ clients will spend serious time here. Each 1099-NEC means hunting down the form, typing the EIN, business name, and amounts. Multiply by every client, every quarter if you had estimated payments.
Investment Account Details: FreeTaxUSA doesn't connect to brokerages like Fidelity, Vanguard, Schwab, E*Trade, or TD Ameritrade. Your consolidated 1099-B might show 200 transactions as a summary - but FreeTaxUSA's forms want individual trade details for certain wash sale and capital gains calculations.
The Import Promises They Actually Keep
State Return Auto-Fill: Once you complete federal, state forms populate automatically. This actually works well and saves real time compared to competitors that sometimes mess up state carry-overs.
Math Calculations: FreeTaxUSA's calculation engine is solid. Enter the raw data correctly, and it handles depreciation schedules, tax credit calculations, and income limitations accurately. I compared results against TurboTax for a rental property return - identical numbers.
Prior Year Comparisons: The software flags unusual changes from last year and asks you to confirm. Caught two input errors that could have triggered IRS notices.
The Work-Around That Actually Works
Batch Entry Sessions: Don't try to enter data across multiple days. FreeTaxUSA's session timeouts are aggressive (20 minutes of inactivity), and losing partially entered data is infuriating. Block 2-3 hours, gather all your forms, and power through it.
Use Their PDF Worksheet: Print the blank forms before starting. FreeTaxUSA's online interface is clean, but having paper copies lets you organize data first and enter it systematically.
Double-Entry Verification: FreeTaxUSA lacks TurboTax's smart error-checking during entry. Build in time to verify numbers against your original documents. Their final review catches math errors but not transcription mistakes.
When Manual Entry is Actually Better
Control Over Categorization: TurboTax's import sometimes miscategorizes business expenses or investment types. Manual entry means you're making those decisions consciously rather than fixing automated mistakes.
Learning Your Return: If you've never understood where your deductions come from, manual entry forces you to engage with every line item. You'll know your tax situation better than users who just click "import all."
Audit Trail: Manual entry creates a clear record of what data came from which documents. If the IRS asks questions later, you know exactly where every number originated.
The bottom line: FreeTaxUSA's manual entry requirement is a time tax, not a money tax. You'll spend 2-4 extra hours, but save $100-200 compared to premium competitors. Whether that trade-off makes sense depends on your hourly rate and how much you value your evening time during tax season.
