I'm a Tax Editor. These Are the 7 Filing Questions People Ask Me the Most

This might be an unpopular opinion, but I look forward to filing my tax return early every year. 

There are some great benefits to doing so. It ensures I get my tax refund faster (it hit in two weeks this year!). It lowers the chances of my identity being stolen by scammers looking to hijack my refund from the IRS. And, if I need to pay for a DIY tax-filing option on TurboTax and H&R Block, for example, I can take advantage of their lowest promotional offers. 

While covering tax season for CNET, I've been asked many tax questions by colleagues, friends and family. Most are about maximizing refunds and which online options cost less.

Since tax day is approaching, I thought I'd share my advice for anyone who hasn't filed or still has questions about their tax return. Here are some of the most common questions I've answered so far.

1. What's the best filing option if you have to file multiple state returns?

We've yet to find a better online DIY solution for taxpayers that need to file multiple state returns than Jackson Hewitt's online tax option.

Jackson Hewitt offers federal filing and unlimited state returns for $25, regardless of your tax situation. However, the service is pretty bare bones with no option to upload files or tax forms. But if you have a good handle on the forms and schedules you'll need, the service may be a good fit for you. 

Cash App Taxes offers free federal and state tax returns, but limits you to one state return. The same goes for most free online tiers available today, including those provided by TurboTax and H&R Block. You can only file multiple state returns on sites like TurboTax and H&R Block if you pay for a higher tier. 

A decent alternative to Jackson Hewitt is FreeTaxUSA, which charges just $15 per state return. Federal filing is free, no matter your tax situation.

2. Does my child need to file taxes?

I've been asked this question a few times by parents with teenagers that picked up part-time jobs in 2023. Your child may choose to file a tax return, even if they don't have to, in order to get a refund on taxes deducted from their paychecks.

However, your child is mandated to file a tax return if they:

• Received more than $13,850, also the standard deduction, in earned income in 2023.
• Have more than $1,250 in unearned income from dividends or interest.
• Have gross income that totals more than their earned income (up to $13,450) plus $400. For example, you have $700 in unearned income and $3,000 in earned income. That $3,700 in combined gross income is more than the allotted $3,400 ($3,000 + $400) in this scenario.

Otherwise, you are free to claim your child as a dependent on your tax return and claim the child tax credit. But if you're not sure if you meet the above requirements, my advice is to reach out to a tax professional or CPA.

3. Are services like TurboTax and H&R Block really free?

Both TurboTax and H&R Block have made headlines over perceived predatory marketing practices recently. The Federal Trade Commision accused both companies of upselling customers who qualified for free filing to paid products.

Each brand has free software it makes available to taxpayers. According to TurboTax, 37% of customers qualify for free filing through TurboTax Free Edition, as long as they file using form 1040 and have minimal credits. H&R Block, meanwhile, has a more expansive free tier than its rival. Both work well if you qualify, but both services will try to upsell you.

With any free service that offers multiple paid products, be wary of attempts by software to convince you to pay for software you don't need. Before signing up, make sure to check that the forms you need are covered by a free tier. 

4. Should you increase withholdings if you live and work in different states?

In most cases, this won't be necessary. You only need to alter your withholdings on your W-4 form if you repeatedly find yourself owing federal or state taxes after filing a return.

To combat this, you can either lower your exemptions on your W-4 or add an additional tax withholding amount for each check to potentially lower your tax bill.

Otherwise, your employer should be withholding taxes in the state in which you work, the state in which you are a resident as well as federal taxes. The state where you reside will typically give you a tax credit for taxes paid to another state.

5. How do I claim student loan interest on my taxes?

Your loan servicer will send you a 1098-E tax form if you paid over $600 in student loan interest in 2023. You may be able to deduct a portion of your student loan interest on your tax return, which lowers your taxable income.

To claim it, you simply have to add the form to your tax return. When using online tax software, you typically add your deductions and credits after entering your personal information and sources of income into the software. 

6. Here are all of the tax forms I've received. What online option works best for me?

Everyone's tax situation is different. So it's best to review all registered IRS e-file providers, including those on our best tax software list, to determine which option works best for you. 

If you have a simple return, typically involving a W-2 and some basic credits like student loan interest, you may qualify to file for free with a number of online tax software providers, from TurboTax to IRS Free File. At this point, you should consider factors like the company's help and support options and ease of use to help you make a decision.

Those with more complicated tax situations will likely have to pay to file their tax return. Compare different tax services to determine which company will let you file your return for less, depending on the IRS forms you have. 

If you have an especially complicated tax situation this year, it may be best to skip online DIY tax options completely and hire a tax professional.

7. Will you file my taxes for me?

No. While I may know more about filing taxes than the average person, I'm not a tax professional or accountant. 

I know that filing your taxes may not be your idea of fun, but there are many DIY online tax software options that are good at holding your hand through the filing process. Many like FreeTaxUSA and TaxAct also offer contextual help to answer common tax questions. 

For more tax advice, check out our tax filing cheat sheet and the latest on the expanded Child Tax Credit. Already filed? Here's how you can track your refund status.