eFile Review: Is It the Best Free Tax Filing Service for You?

eFile is a tax filing service that offers user-friendly tools, step-by-step guidance and competitive pricing, including free filing for simple tax returns. The platform offers a Deluxe Plus and Premium Plus options for moderately complex tax returns and software helps uses to identify some deductions and credits.

eFile is an IRS-authorized tax software that helps individuals file their taxes. It provides a user-friendly, step-by-step interface that helps users navigate their tax filing process, helping to maximize refunds and minimize errors. 

Overview of eFile Services and Benefits 

What does eFile offer in terms of services and benefits? Here is a brief overview: 

• Federal tax filing option. eFile offers free federal tax filings as long as you meet certain requirements. 
• State tax filing option. State tax filings are offered for a fee. 
• Maximizes tax refund. eFile identifies various deductions and credits. 
• Error checking tools. eFile offers a way to check your tax return. 
• Help center. There is a help center with FAQs and resources. 

Benefits include the following: 

• Cost-Effective. For simple and straightforward tax services, it is the most affordable. 
• Easy-to-Use. There are step-by-step instructions to guide the user.
• Secure. There is data encryption and security measures.

How eFile Works

If you’d like to sign up for eFile, it’s easy. The first step is to set up an account. You will be required to choose a username and password. 

After you’ve set up your account, complete the following steps:

1. Sign up for either a free, deluxe or premium plan. 
2. Enter your personal information including your Social Security number, address and filing status. 
3. Input your income information.
4. Identify deductions and credits. 
5. Review and verify your information. 
6. File your federal and, if applicable, state tax return. 
7. Save and print your tax return. 
8. Monitor the return’s status.

eFile’s Key Features

To determine if eFile will work for your tax situation, here’s an overview of its key features: 

• Complete federal and state tax filings. You can file both federal and state tax returns in one place. 
• Affordable pricing. Uncomplicated, simple federal filings are free, and more complicated tax returns have a nominal fee. 
• Refund maximation. Software cues you to identify key credits and deductions so you can receive the maximum refund. 
• Secure and IRS-approved. The software is approved by the IRS and also uses data encryption to protect your financial information. 
• Device friendly. You can file your taxes on any device, including mobile phones, tablets and computers. 
• Robust library. You can use the tax explainer library to help you with various tax situations. 
• Real-time tracking. You can receive updates regarding your filing as well as track the progress of your refund. 

What Are the Costs of eFile?

eFile’s cost differs based on the plan you choose. Here are the available plans: 

Basic Plan 

The basic plan covers either joint or single-income filers who have taxable W-2 income or have unemployment income less than $100,000. You must also have no dependents. The plan is free as long as you have no dependents. You will need to upgrade if you have investment or freelance income. Even if you qualify for a basic plan, you will need to pay $29.95 for an unlimited state plan. 

Deluxe Plus 

The Deluxe Plus plan costs $29.99, or $23.99 with a promotional code. To qualify for the Deluxe Plus plan, your taxable income has to be below $100,000. Usually, if you have a mortgage, dependents or retirement income, the Deluxe Plus plan will be the right fit for you. 

Premium Plus 

The Premium Plus plan costs $49.99, or$39.99 with a promotional code. This plan is for those who make more than $100,000 in taxable income from any source. 

eFile vs. Other Free Tax Filing Services 

How does eFile compare to other free tax filing services? Check out this chart to determine which tax service will work for you. We compare eFile with similar services like H&R Block, TaxSlayer Classic and TurboTax Free. 

eFile vs. H&R Block Free

H & R Block Free and eFile both offer free tax filing options for simple returns. However, H&R Block offers one free state tax return with a free federal tax return. eFile charges for state tax returns. Also, although eFile is more cost effective overall, H&R Block in its paid plans offer audit support and in-person options.

eFile vs. TaxSlayer Classic

TaxSlayer Classic and eFile offer budget-friendly tax filing options, but cater to different preferences. eFile is ideal for the simple return, while TaxSlayer Classic offers more help for self-employed individuals. If you’re filing a straightforward return, eFile is more affordable than TaxSlayer Classic.

eFile vs. TurboTax Free

TurboTax Free and eFile both offer free options for simple tax returns, but TurboTax offers advanced features for more complicated returns. TurboTax Free in its paid plans a charitable donation calculator and a refund estimator based on the information you enter. While eFile is more affordable, for more complicated returns, TurboTax Free may be a better fit.

Advantages of Using eFile

There are certain advantages to using eFile for filing taxes. Check out these advantages: 

• Affordability: eFile is more cost-effective compared to similar products. Eligible users can file their federal tax returns for free. 
• User-friendly: eFile offers step-by-step guidance as you move through your return. They also offer an error check. 
• Maximizes Refunds: The service ensures you receive the largest refund by identifying deductions and credits. 
• No hidden fees: eFile is transparent when it comes to its fees for its various plans. 
• Max refund guarantee: eFile guarantees the maximum refund or lowest tax liability, or you’ll get a refund of your eFile fees (with documentation).

Disadvantages of eFile

Not all tax situations are ideal for eFile. Here are some of the disadvantages of eFile: 

• No option for in-person help. You do not have the option to go into a local branch if you have questions or concerns. 
• No ability to download documents. You will have to manually upload and enter information into your tax filing. 
• No audit support. Users will have to handle IRS audits on their own.
• Lack of live support. eFile doesn’t have a live chat or extensive customer support feature. 

Is eFile Legitimate?

Yes, eFile is a legitimate tax service that is authorized by the IRS. It provides secure filing for both federal and state tax returns. eFile uses data encryption and security measures to make certain your information is confidential. 

eFile for Different Tax Situations 

eFile can be utilized for a variety of tax situations. For simple tax situations, eFile works for joint and single taxpayers with W-2s or unemployment income below $100,000. 

For moderately complex tax situations, eFile is good for Individuals with multiple income sources, e.g., W-2, 1099, rental properties). Also, in the Deluxe and Premium plans eFile works with taxpayers itemizing deductions or claiming credits for dependents, homeownership, or education. The Premium Plus plan supports more complex tax returns with guided support for credits and deductions. 

Advanced tools for business taxes and self-employed individuals may be limited. 

When is the IRS Accepting eFile Returns in 2025?

Currently, the IRS is officially open to tax returns on Monday, Jan. 27. However, the IRS File Free program opens on Thursday, Jan. 10. It is available for those who have an adjusted gross income of $84,000 or less in 2024. 

eFile Review: Customer Feedback and Experiences 

The Better Business Bureau has accredited eFile.com LLC with an A+ rating since 2014. 

There are a handful of complaints about eFile on the BBB website. It appears that the business responds to complaints. Complaints generally involve disputes regarding pricing and customer service. In instances where refunds have been requested, according to statements on BBB, eFile has refunded the customer. 

Trustpilot ranks eFile’s platform 4.1 out of 5 stars. Of the 214 reviews, 80% of the reviews were rated 5 stars. Users stated: “It was a great experience. It took me less than five minutes to file my 2024 tax return,” “The software was well prepared and was a breeze to complete my returns,” and “We very much liked the straightforward method of eFile and we had a great response anytime we needed to call in with a question.”

Final Take

eFile is ideal for simple and straightforward taxes, especially those with W-2s and no itemized deductions. The step-by-step process makes it easy to use, and paid plans are affordable. eFile is also good for moderately complex returns with itemized deductions, self-employment income, and investments. The cost of eFile is less than competitors.

eFile may not work for highly complex tax situations. If you have extensive investments, multiple properties or require advanced tools because you are self-employed, you may want to consider other options. In addition, if you want audit support, it may be wise to consider an alternative that provides that service. 

Research Methodology

Here’s a breakdown of the different factors that comprised GOBankingRates’ scoring.

Cost

When evaluating a tax filing service, cost has to be considered. eFile offers a free federal tax option for those who have simple returns. More complicated tax returns are priced reasonably, either costing between $30 to $50. Promotional codes are also offered for additional discounts.

User Reviews

eFile customers are generally pleased with their user experience. eFile has received a positive rating from the Better Business Bureau and Trust Pilot has posted favorable reviews from customers.

Availability of Resources

eFile has a step-by-step guide of walking customers through their returns. eFile also cues users on certain deductions and credits. If you ask a question online, a human expert will respond with an answer.

Audit Support

eFile doesn’t offer audit support. If you are worried about an IRS audit or have a complicated tax situation, then you may want to consider an alternative service.

Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.

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