1040.com is a low-cost on-line tax prep program with a user-friendly interface and three distinct plans acceptable for conditions of various complexity.Although its free model isn’t fairly sturdy sufficient to make our checklist of the perfect free on-line tax prep choices, 1040.com is unquestionably a worthy alternative for filers who’d desire to not pay tons of for in-person prep or shell out double what they’d pay right here for full-service help at TurboTax or H&R Block.1040.com is a card-carrying member of the “you get what you pay for” tax prep crowd. In case you’re in search of a platform that basically holds your hand at each stage of the prep course of, or search the safety that comes with round the clock entry to on-call tax specialists, 1040.com isn’t best for you. Look to a hands-off digital CPA service like TaxHub as a substitute.Then again, in case you’re assured sufficient to finish your return from begin to end with minimal help, 1040.com is a good alternative. Right here’s what you’ll want to find out about its plans, options, benefits, drawbacks, and total suitability.Plans, Pricing & Options1040.com has three distinct plans. So far as I can inform, they don’t even have official names. On the web site, they’re distinguished solely by their federal return pricing. I’m referring to them accordingly.Not like some on-line tax prep applications, 1040.com doesn’t require you to affirmatively select a plan earlier than starting your tax return. As you progress via the interview-style prep course of and introduce new sources of revenue or potential deductions, the software program robotically upgrades or downgrades your account. At completion, you’re proven your last value primarily based in your scenario’s complexity.1040.com’s prep interface has a remarkably crisp design and an open structure that permits free of charge motion between sections and varieties. When you enter your demographic info, you’re free to work on any sections or varieties you select, in any order. 1040.com auto-completes all related state varieties earlier than you formally start your state return, saving time and tedium.1. Free Plan1040.com’s free plan is suitable for filers with simple tax conditions. It’s acceptable for:Single or married filers (submitting collectively or individually)Filers claiming lower than $100,000 in taxable incomeFilers claiming the Earned Revenue Tax CreditFilers claiming revenue from W-2 wages, unemployment, curiosity below $1,500, ideas, and sure much less widespread sources (reminiscent of taxable scholarships and grants)It’s not acceptable for filers with kids or dependents, nor these planning to itemize deductions. This plan is completely free; you don’t should pay further to file a state return.2. $24.95 PlanThis plan comes with all of the options and performance of the free plan, plus:Help for Itemized Deductions. In case you plan to itemize your deductions – “actual property and property taxes, state revenue taxes, charitable donations, mortgage curiosity, [or] medical bills,” suggests 1040.com – you are able to do so with this plan.Help for Retirement Financial savings Tax Credit. In case you contributed to an employer-sponsored retirement plan, you’ll be able to take the suitable tax advantages right here.Help for Retirement Revenue. This is applicable in case you earned revenue from retirement account distributions, Social Safety, or employer pensions.Help for Different Deductions. These embrace “educator bills, transferring bills, alimony paid, and IRAs,” in keeping with 1040.com.Help for Kids and Dependents. When you’ve got kids or dependents, you’ll be able to declare all acceptable tax credit and deductions right here, together with for schooling bills and financial savings.Every state return prices $19.95 with this plan.three. $44.95 PlanThis plan comes with all the things included within the $24.95 plan, plus:Help for Taxable Revenue Over $100,000. Excessive-income filers must improve to this plan, even when their tax conditions should not in any other case difficult.Help for Self-Employment and Small Enterprise Revenue. In case you’re a freelancer, solopreneur, or small enterprise proprietor, you could must file Schedule C, which this plan helps. In case you earn revenue from a partnership or C-corporation, you may additionally must report revenue from Schedule Ok-1, additionally supported by this plan.Help for Beneficiary Revenue. In case you’re the beneficiary of an property or belief, you’ll be able to report revenue earned from these sources with this plan.Help for Unreported Suggestions. In case you did not report money ideas via your employer, you are able to do so with this plan.Help for Much less Widespread Conditions. Different much less widespread sources of revenue, together with rental revenue and playing winnings, are supported by this plan. So are much less widespread deductions and credit.Every state return prices $24.95 with this plan.Extra FeaturesRefund Tracker1040.com has a real-time refund tracker that shows your anticipated federal and state tax refunds or liabilities. These figures are clearly seen close to the highest of the prep interface and alter with every new related bit of knowledge.Pay With Your RefundIf you’re eligible for a federal tax refund, you should use it to pay your 1040.com prep charges. There could also be a processing cost related to this maneuver, so verify 1040.com’s wonderful print for particulars.Most Refund GuaranteeLike most on-line tax prep software program, 1040.com has a most refund assure. In case you file an equivalent return with a competitor and get a bigger refund, 1040.com might refund the distinction, topic to sure restrictions and limitations. Contact 1040.com’s assist group for an up-to-date accounting of the wonderful print.Accuracy Assure1040.com additionally has an accuracy assure. You could be entitled to compensation in case your return is affected by any errors or omissions attributable to 1040.com’s software program. The phrases of this assure are topic to vary, so it’s greatest to verify with 1040.com for the newest particulars.Help for Clear Water ProjectsDrake Software program, 1040.com’s mother or father firm, companions with Therapeutic Waters Worldwide, a Denver-area nonprofit that invests in clear water initiatives world wide. For each tax return filed utilizing its software program, 1040.com donates $2 to Therapeutic Waters. That doesn’t sound like lots – till you study that Drake Software program processed greater than 15 million federal returns via its numerous tax functions (together with on Drake Software program’s skilled tax prep software program, not simply the 1040.com interface) in 2017 alone.If you would like your tax prep charges to make a distinction on the planet, you’d be hard-pressed to discover a higher firm to maintain your online business with.Advantages1. Larger-Priced Plans Nonetheless Cheaper Than Full-Service Rivals1040.com’s higher-priced plans stay bargains by the requirements of full-service opponents like TurboTax and H&R Block. The costliest plan prices $44.95 for the federal return and $24.95 for every state return, that means most filers pay lower than $75 out of pocket. That’s a steal: TurboTax’s Self-Employed plan, its closest analogue, prices practically $120 for federal and practically $40 for state taxes at full value.2. You Can Pay Prep Charges With Your Refund1040.com helps you to pay your prep charges out of your federal tax refund, assuming it’s giant sufficient. It is a nice choice for cash-strapped filers who’d desire to not pay something out of pocket for this unavoidable annual ritual.three. Your Prep Charges Help a Good CauseIf you’re bullish on mission-driven corporations, you’ll love 1040.com and its mother or father firm, Drake Software program. Once you file your return at 1040.com, you’ll be instantly accountable for a $2 donation to Therapeutic Waters Worldwide, a nonprofit that helps clear water initiatives in needy communities world wide. No different on-line tax prep software program that I’m conscious of advertises its charitable actions so forthrightly.four. Cell-Pleasant, Person-Pleasant Interface1040.com has a mobile-friendly interface that’s a snap to make use of. That is simply a top-five alternative for filers preferring to finish their returns on small-screened gadgets, reminiscent of smartphones and tablets. It’s additionally one of many best tax prep platforms to navigate, because of an open structure that allows you to work on sections and varieties in any order following your preliminary private and demographic info entry.5. In depth Assist Content material1040.com has a fairly intensive database of assist content material. It’s divided into two most important sections: a information base organized by subject and a FAQ part with dozens of widespread tax-related questions centered on latest tax reform laws, Reasonably priced Care Act necessities, e-filing, refund processing, and miscellaneous subjects.I’ve spent plenty of time trying via numerous on-line tax prep applications’ assist databases, and I’ve to say that 1040.com’s is among the many most spectacular for 2 most important causes: intuitive group and a slew of subjects devoted particularly to freelancers and small enterprise homeowners. The latter may reveal my bias, but it surely’s legitimately necessary that frugal freelancers have sturdy, plain-English tax assist at their disposal. Not everybody can afford to pay a CPA.Disadvantages1. Free Model Is Pretty Restricted1040.com’s free plan is suitable just for simple tax conditions. To qualify for a free federal and state return, you’ll want to:Don’t have any kids or dependentsClaim taxable revenue below $100,000Take the usual deduction onlyHave revenue from W-2 wages/wage, unemployment, taxable curiosity below $1,500, ideas, scholarships, grants, and Alaska Everlasting Fund dividends onlyYou can declare the Earned Revenue Tax Credit score with the free plan, however the no-dependents rule is fairly restrictive. Some full-service opponents, together with TurboTax and H&R Block, have extra beneficiant free variations that permit for itemized deductions and EITC with dependents.2. Poor Prior-12 months Importing Capabilities1040.com’s prior-year importing capabilities are subpar. Although you’ll be able to import your prior-year return ready with 1040.com, there’s no choice to import final 12 months’s return from one other on-line tax prep supplier, so you need to fill in all of your private and demographic info by hand – a time-consuming and tedious course of. Most opponents have not less than some allowance for prior-year return importing: PDF imports from TurboTax, TaxAct, and H&R Block (not less than) are business commonplace.three. Restricted Buyer Help1040.com has restricted buyer assist infrastructure: a complete however DIY assist database and a shaky (see beneath) stay chat system. Reside chat is accessible solely throughout prolonged enterprise hours, so it’s not acceptable for busy filers who don’t have any alternative however to arrange their returns over the weekends or later within the night.four. Glitchy Reside Chat System1040.com’s stay chat system isn’t dependable sufficient for my liking. In the middle of a routine chat question, my connection was twice severed earlier than I had an opportunity to finish the dialog (in each instances, earlier than I’d even completed asking my query). It’s not clear whether or not this was an remoted technical incident or attributable to 1040.com’s outdated chat platform, but it surely wasn’t a welcome growth in both case. Fortuitously, my difficulty wasn’t pressing.Closing WordBefore coming throughout 1040.com, I hadn’t given a lot thought to mission-driven tax prep. Okay, I hadn’t given it any thought.Now that I’ve had an opportunity to get aware of this low-key product, I’m stunned and slightly ashamed. Contributing $2 per return towards clear water in desperately poor components of the world is a small act that makes an enormous distinction. I’m not saying it is best to put together your taxes with 1040.com just because its mother or father firm is extra vocal about its charity than most, however there are undoubtedly worse causes to modify – notably in case you’re not in love along with your present tax prep supplier.Are you planning to make use of 1040.com to finish your taxes this 12 months?