Author Topic: Credit Karma: Free Federal and State Tax Return  (Read 16690 times)

tarheeldan

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Re: Credit Karma: Free Federal and State Tax Return
« Reply #50 on: February 09, 2017, 11:04:52 AM »
So far so good for me, CreditKarma and TaxAct are identical after entering W-2, 1099-DIV, and 1099-B :-)

SpareChange - which one's the FTC? Here is the menu listing of credits I found within the software:


(Child Tax Credit and Additional Child Tax Credit are calculated automatically.)

Adoption credit
Earned income credit
Dependent care credit
Credit for the elderly or disabled

Residential energy credits
First time homebuyer credit repayment
Mortgage interest credit

Alternative motor vehicle credit
Fuel tax credit
Qualified plug-in electric drive vehicle credit
Qualified electric vehicle credit (passive activity)

Education credit
Retirement contribution credit
Earned income credit after disallowance (Form 8862)
Alternative minimum tax credit
District of Columbia first-time homebuyer credit
General business credit

SpareChange

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Re: Credit Karma: Free Federal and State Tax Return
« Reply #51 on: February 09, 2017, 11:41:58 AM »
Foreign Tax Credit on foreign taxes paid through the etf (VT) I hold in taxable. It's less than $300, so I don't need to file a 1116. I've used HRBlock free online for years, but they want me to upgrade to use claim an HSA deduction. No thanks. Thought I'd give CK a try.

MN

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Re: Credit Karma: Free Federal and State Tax Return
« Reply #52 on: February 11, 2017, 04:13:41 PM »
I tried it. Federal was correct, however it did not properly calculate the MN state M1M form. I submitted a question about it and got a reply a few days later that wasn't related to my question.

dhc

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Re: Credit Karma: Free Federal and State Tax Return
« Reply #53 on: February 11, 2017, 08:44:37 PM »
More bugs:
  • schedule C for spouse gets its schedule SE created in my name rather than spouse's and shows all 0s. Appears to still calculate totals correctly, but the blank form is disturbing
  • home office deduction doesn't calculate depreciation correctly (the percentage field shows 0% rather than calculating correctly, so it zeros out)
  • noncash deductions don't allow entry of "various" for purchase date

No thanks! Back to freetaxusa for me this year, even if I have to fill out my state return by hand.

sirdoug007

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Re: Credit Karma: Free Federal and State Tax Return
« Reply #54 on: February 12, 2017, 12:59:18 AM »
Crap.  I didn't catch that it put HSA contributions as income!!! 

I send a message to them.  I can't even edit this in my tax return online.  I guess I will have to refile.  Ugh.

boarder42

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Re: Credit Karma: Free Federal and State Tax Return
« Reply #55 on: February 12, 2017, 04:55:25 AM »
Crap.  I didn't catch that it put HSA contributions as income!!! 

I send a message to them.  I can't even edit this in my tax return online.  I guess I will have to refile.  Ugh.

They aren't if you fill out the healthcare part correctly

sirdoug007

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Re: Credit Karma: Free Federal and State Tax Return
« Reply #56 on: February 12, 2017, 05:43:59 AM »
Crap.  I didn't catch that it put HSA contributions as income!!! 

I send a message to them.  I can't even edit this in my tax return online.  I guess I will have to refile.  Ugh.

They aren't if you fill out the healthcare part correctly

Where did I go wrong?


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Nothlit

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Re: Credit Karma: Free Federal and State Tax Return
« Reply #57 on: February 12, 2017, 07:41:13 AM »
Crap.  I didn't catch that it put HSA contributions as income!!! 

I send a message to them.  I can't even edit this in my tax return online.  I guess I will have to refile.  Ugh.

They aren't if you fill out the healthcare part correctly

Where did I go wrong?

Under the "Deductions" section, the section labeled "Health savings account (HSA) contributions and deductions". Unless you fill this out and indicate that you had HSA-compatible health insurance, CK will assume any W-2 box 12 HSA contributions are includable as "other income" (1040 line 21).

Drifterrider

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Re: Credit Karma: Free Federal and State Tax Return
« Reply #58 on: February 13, 2017, 12:21:34 PM »
Does any of this "free" software allow you to file electronically for "free" without regards to AGI, MAGI and forms needed?  I use 1040, Schs A, B, C, E and AMT.

boarder42

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Re: Credit Karma: Free Federal and State Tax Return
« Reply #59 on: February 13, 2017, 01:08:26 PM »
i have "other income" that i have no clue where it is coming from.

It appears this is from my 1099-SA i took 912 dollars in distributions from my HSA last year.  It is taxing 817 dollars worth this doesnt make sense to me.
« Last Edit: February 13, 2017, 01:34:01 PM by boarder42 »

boarder42

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Re: Credit Karma: Free Federal and State Tax Return
« Reply #60 on: February 13, 2017, 01:43:23 PM »
i think i figured it out i needed to put 912 in my unreimbursed expenses level.

Nothlit

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Re: Credit Karma: Free Federal and State Tax Return
« Reply #61 on: February 13, 2017, 03:08:36 PM »
Does any of this "free" software allow you to file electronically for "free" without regards to AGI, MAGI and forms needed?  I use 1040, Schs A, B, C, E and AMT.

Yes, Credit Karma supports all of those schedules for free with no income limits. However, given the issues I and others have shared so far in this thread, I would avoid Credit Karma unless you are comfortable and confident you can double-check the accuracy of their results before filing.

FreeTaxUSA/TaxHawk is another totally free option that supports all of the things you listed, and has been around for a while. I've used it the past couple of years with no complaints. No income limits there either.
« Last Edit: February 13, 2017, 03:14:05 PM by Nothlit »

dhc

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Re: Credit Karma: Free Federal and State Tax Return
« Reply #62 on: February 13, 2017, 04:25:17 PM »
Does any of this "free" software allow you to file electronically for "free" without regards to AGI, MAGI and forms needed?  I use 1040, Schs A, B, C, E and AMT.

Yes, Credit Karma supports all of those schedules for free with no income limits. However, given the issues I and others have shared so far in this thread, I would avoid Credit Karma unless you are comfortable and confident you can double-check the accuracy of their results before filing.

FreeTaxUSA/TaxHawk is another totally free option that supports all of the things you listed, and has been around for a while. I've used it the past couple of years with no complaints. No income limits there either.

Same here - FreeTaxUSA has been a pleasant surprise for me (though it doesn't include filing state taxes). They have some upsells available but not in your face.

Drifterrider

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Re: Credit Karma: Free Federal and State Tax Return
« Reply #63 on: February 14, 2017, 06:54:35 AM »
Does any of this "free" software allow you to file electronically for "free" without regards to AGI, MAGI and forms needed?  I use 1040, Schs A, B, C, E and AMT.

Yes, Credit Karma supports all of those schedules for free with no income limits. However, given the issues I and others have shared so far in this thread, I would avoid Credit Karma unless you are comfortable and confident you can double-check the accuracy of their results before filing.

FreeTaxUSA/TaxHawk is another totally free option that supports all of the things you listed, and has been around for a while. I've used it the past couple of years with no complaints. No income limits there either.

Same here - FreeTaxUSA has been a pleasant surprise for me (though it doesn't include filing state taxes). They have some upsells available but not in your face.

MD has its own free filing system.  A menu driven, fill in the blanks from your federal return type system.  I think it is very smart and probably saves the state (the people) a lot of money as opposed to hiring people to handle the work.

boarder42

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Re: Credit Karma: Free Federal and State Tax Return
« Reply #64 on: February 14, 2017, 07:40:46 AM »
Doesn't work for multiple states so won't work for me. I guess I could just file somewhere else for the extra state

tarheeldan

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Re: Credit Karma: Free Federal and State Tax Return
« Reply #65 on: February 14, 2017, 10:32:44 AM »
Foreign Tax Credit on foreign taxes paid through the etf (VT) I hold in taxable.

I ended up with the same issue on VXUS, plus I couldn't find in Credit Karma Tax where 1099-B box something or other is logged (characterizing capital gains as short-term or long term, with or without basis reporting). Gave a low confidence for the software's ability to dot the i's and cross the t's.

Used TaxAct again this year, $11.99 for Federal. Filed about an hour ago, return accepted immediately. Maybe next year!

2Birds1Stone

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Re: Credit Karma: Free Federal and State Tax Return
« Reply #66 on: February 14, 2017, 11:10:12 AM »
Ended up filing with TurboTax Online.

johnny847

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Re: Credit Karma: Free Federal and State Tax Return
« Reply #67 on: February 14, 2017, 11:14:48 AM »
Does any of this "free" software allow you to file electronically for "free" without regards to AGI, MAGI and forms needed?  I use 1040, Schs A, B, C, E and AMT.

Yes, Credit Karma supports all of those schedules for free with no income limits. However, given the issues I and others have shared so far in this thread, I would avoid Credit Karma unless you are comfortable and confident you can double-check the accuracy of their results before filing.

FreeTaxUSA/TaxHawk is another totally free option that supports all of the things you listed, and has been around for a while. I've used it the past couple of years with no complaints. No income limits there either.

Same here - FreeTaxUSA has been a pleasant surprise for me (though it doesn't include filing state taxes). They have some upsells available but not in your face.

MD has its own free filing system.  A menu driven, fill in the blanks from your federal return type system.  I think it is very smart and probably saves the state (the people) a lot of money as opposed to hiring people to handle the work.

The federal government has that too.

dragoncar

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Re: Credit Karma: Free Federal and State Tax Return
« Reply #68 on: February 14, 2017, 01:03:44 PM »
Tax act raised their prices too much this year but they have a free version that has everything but one form I need.  The form doesn not affect my payment amount. So I'll likely either paper file and just add the one form to the envelope or efile and paper file an amended return with nothing due. 

SpareChange

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Re: Credit Karma: Free Federal and State Tax Return
« Reply #69 on: February 14, 2017, 11:42:12 PM »
I ended up with the same issue on VXUS, plus I couldn't find in Credit Karma Tax where 1099-B box something or other is logged (characterizing capital gains as short-term or long term, with or without basis reporting). Gave a low confidence for the software's ability to dot the i's and cross the t's.

Used TaxAct again this year, $11.99 for Federal. Filed about an hour ago, return accepted immediately. Maybe next year!

Yeah, that's too bad. I ended up just using the IRS fillable forms over the weekend.   

Aggie1999

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Re: Credit Karma: Free Federal and State Tax Return
« Reply #70 on: March 05, 2017, 11:39:28 AM »
Seems like Credit Karma tax is nowhere near ready for prime time. It took my $3300 HSA contribution from my W2, box 12, code W and binned that as "Other Income". So it's dinging me for ~$1k in additional taxes. Don't see anyway to correct it. Also it doesn't ask me anything about my HSA forms (1099-SA, 5498-SA). Finally I can't seem to find how to get it to show the actual tax forms (1040, etc) at the end of the review process. All around not good.

TomTX

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Re: Credit Karma: Free Federal and State Tax Return
« Reply #71 on: March 05, 2017, 12:41:46 PM »
Seems like Credit Karma tax is nowhere near ready for prime time. It took my $3300 HSA contribution from my W2, box 12, code W and binned that as "Other Income". So it's dinging me for ~$1k in additional taxes. Don't see anyway to correct it. Also it doesn't ask me anything about my HSA forms (1099-SA, 5498-SA). Finally I can't seem to find how to get it to show the actual tax forms (1040, etc) at the end of the review process. All around not good.

http://forum.mrmoneymustache.com/taxes/credit-karma-free-federal-and-state-tax-return/msg1428025/#msg1428025

Aggie1999

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Re: Credit Karma: Free Federal and State Tax Return
« Reply #72 on: March 05, 2017, 01:40:33 PM »
Seems like Credit Karma tax is nowhere near ready for prime time. It took my $3300 HSA contribution from my W2, box 12, code W and binned that as "Other Income". So it's dinging me for ~$1k in additional taxes. Don't see anyway to correct it. Also it doesn't ask me anything about my HSA forms (1099-SA, 5498-SA). Finally I can't seem to find how to get it to show the actual tax forms (1040, etc) at the end of the review process. All around not good.

http://forum.mrmoneymustache.com/taxes/credit-karma-free-federal-and-state-tax-return/msg1428025/#msg1428025

Thanks. Got it fixed. You would think if one's W2 had HSA contributions the wizard would walk through the applicable parts. Maybe it did and I didn't know what it was asking. After entering my 1099-SA I had to also tell it I had equal un-reimbursed distributions. Otherwise it wanted to count my HSA expenditures as other income. Very hokey.

On a brighter note it did correctly treat my excess HSA contribution from 2015 that I didn't fix in 2016 (i.e. charged me the 6% penalty for the remaining excess). FreeTaxUSA didn't do that.

Aggie1999

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Re: Credit Karma: Free Federal and State Tax Return
« Reply #73 on: March 05, 2017, 01:43:04 PM »
Now for the last problem with Credit Karma Tax. For my capital gains it is showing equities sales as the cost basis being reported to the IRS. The 1099-B I received clearly shows cost basis was not reported to the IRS (these are old non-covered stocks I sold). I don't see where in Credit Karma Tax where to specify this. Any ideas?

dragoncar

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Re: Credit Karma: Free Federal and State Tax Return
« Reply #74 on: March 05, 2017, 06:21:48 PM »
I'm so torn, because I have a specific crappy form that nobody does for free, and I'm pissed at TaxAct, who I've previously used, for deceptive marketing and crappy customer service.  I did the math an if I can grab a slickdeal for $20 discount on TaxAct before April (and of course the discounts are always in March) I'l come out ahead on the interest I would have earned on my refund.

Aggie1999

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Re: Credit Karma: Free Federal and State Tax Return
« Reply #75 on: March 05, 2017, 10:14:12 PM »
I'm so torn, because I have a specific crappy form that nobody does for free, and I'm pissed at TaxAct, who I've previously used, for deceptive marketing and crappy customer service.  I did the math an if I can grab a slickdeal for $20 discount on TaxAct before April (and of course the discounts are always in March) I'l come out ahead on the interest I would have earned on my refund.

What I ended up doing today was just doing the print option through Credit Karma. I used that as a basis for filling out the e-file forms directly through the IRS. Fixed myself what Credit Karma and FreeTaxUSA got wrong. Took a little longer but was pretty painless since I had most of the data already calculated for me. Also easier to understand the IRS forms when the data is already there and you can validate.

Spork

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Re: Credit Karma: Free Federal and State Tax Return
« Reply #76 on: March 06, 2017, 10:57:04 AM »
I'm so torn, because I have a specific crappy form that nobody does for free, and I'm pissed at TaxAct, who I've previously used, for deceptive marketing and crappy customer service.  I did the math an if I can grab a slickdeal for $20 discount on TaxAct before April (and of course the discounts are always in March) I'l come out ahead on the interest I would have earned on my refund.

Does H&R Block software not handle it?  I just noticed it was $20 on Amazon for the mid range "deluxe" package if you don't need state income tax.

dragoncar

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Re: Credit Karma: Free Federal and State Tax Return
« Reply #77 on: March 06, 2017, 11:15:01 AM »
It probably does, but I need state

downtownshuter

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Re: Credit Karma: Free Federal and State Tax Return
« Reply #78 on: March 22, 2017, 07:58:47 AM »
I tried. Had a few sections where I wasn't clear how it was working and the refund was not adjusting as I expected it to as I entered new information. Also it required me to itemize a charitable deduction when I shouldn't have needed to (you only itemize if one specific item is $500 or more, not if your total donations are $500 or more) and then it double counted that deduction and I couldn't delete the itemized line. A few quirky things like that.

In the end it said I would get a refund of ~$2,850. Then I did everything myself and got a refund of $4,350. The worst thing is CK doesn't show you your forms or schedules so I can't track down the discrepancy. I contacted CK customer service about a couple of my issues, including whether or not I could see my actual Form 1040, and they gave me some stock answers that were not helpful. I was excited about this because I love CK for credit monitoring. Unfortunately this product isn't quite ready for prime time yet.

(I think the biggest difference is coming from CK's treatment of my HSA distribution. On CK's HSA form there was no section for "Qualified medical expenses paid using HSA distributions". So I believe they were taxing me on my distribution and adding the 20% penalty. But that doesn't totally resolve the discrepancy)

Aggie1999

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Re: Credit Karma: Free Federal and State Tax Return
« Reply #79 on: March 22, 2017, 09:01:25 AM »
I tried. Had a few sections where I wasn't clear how it was working and the refund was not adjusting as I expected it to as I entered new information. Also it required me to itemize a charitable deduction when I shouldn't have needed to (you only itemize if one specific item is $500 or more, not if your total donations are $500 or more) and then it double counted that deduction and I couldn't delete the itemized line. A few quirky things like that.

In the end it said I would get a refund of ~$2,850. Then I did everything myself and got a refund of $4,350. The worst thing is CK doesn't show you your forms or schedules so I can't track down the discrepancy. I contacted CK customer service about a couple of my issues, including whether or not I could see my actual Form 1040, and they gave me some stock answers that were not helpful. I was excited about this because I love CK for credit monitoring. Unfortunately this product isn't quite ready for prime time yet.

(I think the biggest difference is coming from CK's treatment of my HSA distribution. On CK's HSA form there was no section for "Qualified medical expenses paid using HSA distributions". So I believe they were taxing me on my distribution and adding the 20% penalty. But that doesn't totally resolve the discrepancy)

Credit Karma certainly has a ways to go in easy of use. You can see the actual forms. Go to the end where you select "mail your forms". Then it will give you the actual PDF's filled out.

dragoncar

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Re: Credit Karma: Free Federal and State Tax Return
« Reply #80 on: March 24, 2017, 08:34:22 PM »
There's a slickdeal for TaxAct premium: $10 fed+state.  Sold.  I'm just glad they got their heads out of their asses

phildonnia

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Re: Credit Karma: Free Federal and State Tax Return
« Reply #81 on: February 13, 2019, 03:17:57 PM »
I always seem to find bugs in free online tax programs.  Here's what I noted from Credit Karma in 2017:

1. Entering Section 1256 contracts gains from a K-1, the values were not entered on Form 6781. 
2. There was no place to enter losses from a trust on Schedule E
3. Passive Activity Losses from a PTP were not deducted, even though the PTP was "completely disposed".
4. There was no place to enter the Foreign tax credit from a 1099-DIV.

I haven't checked these or other things for 2018, so keep an eye out for stuff like this.

Not to pick on Credit Karma in particular; pretty much every program I've ever tried has had some kind of problem.  TaxAct, Freetax.com, and even the well-respected TurboTax have had little bugs that you can only find by going over the final forms yourself. 

phildonnia

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Re: Credit Karma: Free Federal and State Tax Return
« Reply #82 on: February 13, 2019, 03:21:36 PM »
I always file free, I've never been able to file electronically for free (fed.  my state has its own database).
You may like freefilefillableforms.com.    It's not much more than filling out forms by hand, but it electronically files them for free.

2Birds1Stone

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Re: Credit Karma: Free Federal and State Tax Return
« Reply #83 on: February 13, 2019, 07:04:05 PM »
@Philociraptor, I'm not the only one! I knew something was up with CK last year.

phildonnia

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Re: Credit Karma: Free Federal and State Tax Return
« Reply #84 on: February 14, 2019, 10:48:50 AM »
... Completely relying on software for anything can end up badly.

I would trust tax prep programs much more if they just added one small feature: right click on any place on a form, and it will tell you where that number came from, or how it was calculated.

CareCPA

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Re: Credit Karma: Free Federal and State Tax Return
« Reply #85 on: February 14, 2019, 08:51:31 PM »
... Completely relying on software for anything can end up badly.

I would trust tax prep programs much more if they just added one small feature: right click on any place on a form, and it will tell you where that number came from, or how it was calculated.
That would be wonderful.
Even professional software has that limitation. You may already be aware of this...

appleshampooid

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Re: Credit Karma: Free Federal and State Tax Return
« Reply #86 on: February 15, 2019, 12:10:57 PM »
I tried Credit Karma this year - I was lucky in that one of the first forms I went to enter wasn't supported. I had a 1099-R from a Roth distribution that wasn't taxable (withdrawal of contribution), and on the 1099-R the "Taxable Amount Not Determined" box was checked (I'm assuming this is checked because they don't know your Roth basis, so you have to figure this out yourself on form 8606).

That checkbox was not supported in CreditKarma. Womp womp, on to the next provider on the list to try this year. So far I have been pretty happy with FreeTaxUSA, and I'm almost done (just need to get my 1099s from Vanguard). 

$0 for federal, no matter how complicated. $12.95 for State, and I got a coupon for 10% off that.