1040.com Review

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Think Twice

This lesser-known option appeals with a flat rate for unlimited state returns. However, customer support is limited and reviews suggest the guidance is oversimplified. The standard free software supports only simple returns and the Free File Edition has an income limit of $33,000.

1040.com Free File Edition Requirements
  • Adjusted gross income of $33,000 or less
  • Supports all common forms

1040.com Federal Edition Requirements
  • Adjusted gross income of $100,000 or less, and
  • 65 or younger, and
  • No children or dependents
  • Must take standard deduction

Reviews indicate that 1040.com may be appropriate for specific circumstances, but it's not the best choice if you're looking for a bargain. About.com's resident U.S. tax expert likes that the company's Free File Edition provides free PDF files of the federal and state tax forms, so you can print and mail the return if you prefer not to e-file. He also considers the support center helpful and the navigation simple to follow, although it wasn't obvious where to report rental income.

Another review commends the flat fee ($19.95) for e-filing as many state returns as needed but laments the lack of customer support, noting that there isn't even a link to a "contact us" page on the website. Although the parent company, Drake Software, has an A- rating with the Better Business Bureau, one customer complaint from 2014 raises concern. 1040.com alleged the customer's return was filed with the IRS, but the IRS had no record of it. Another complaint on the BBB website asserts that the interview questions designed to elicit relevant tax information were oversimplified, which resulted in an incorrect refund calculation.

The Free File version of 1040.com is available only to households with less than $33,000 in adjusted gross income in 2014. The Free Edition is designed for taxpayers with simple tax circumstances. If you have children or dependents, make more than $100,000 in taxable income, or are over 65, this tool is not for you; paid versions start at $19.95. Moreover, the fee for e-filing a state return is $19.95, which is higher than most of the competition, and there's no audit assistance or guaranteed accuracy. Users also cannot import previous returns. The one bright spot is that the state fee covers filing in as many states as needed (e.g., if you worked in more than one state or moved during 2014); most other providers charge for each state return. There is no fee to print a copy of your return.

Although the state filing fee covers more than one return, it's on the high side, and the complaints and limitations of the software argue against this product.

Louis DeNicola

Louis DeNicola is a freelance personal finance writer who specializes in credit, debt, and practical money-saving tips. He loves stacking savings opportunities to get amazing deals, traveling for free using credit card rewards, and teaching others how to do the same. Connect with Louis by visiting louisdenicola.com.

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