How do companies who offer free tax filing make profit?

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I became curious of this after seeing some “life pro tips” posts about which tax-filing services are *actually* free. Obviously the big sites will try to squeeze every dime they can out of you, while claiming to be free. But some of these sites are legitimate **and** free, and I don’t understand how they can offer these services and still turn a profit.

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Anonymous 0 Comments

It’s free *if* you meet the requirements. If you have even the smallest thing out of the ordinary, it’s not free.

I have an ebook listed on Amazon. I charge less than a dollar for it, and I might sell two copies a year. (I did it for the experience of creating and selling an ebook.) Reporting book royalties to the IRS requires a certain form. That form is enough to kick me off any “free” tax service.

I do my federal taxes myself with the IRS Free File Fillable forms, now. And (don’t tell the IRS) I wised up and no longer report miniscule amounts like these royalties or the interest my savings account earns.

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