How Do Free Tax Preparation Services Make Money?
Tax season can be stressful for millions of individuals and small businesses, which is why many people turn to tax preparation services for help. Over the years, the rise of free tax preparation services has attracted attention. The question often arises: if these companies are offering services for free, how do they actually make money? This article explores the business models behind free tax preparation services, showing how they generate revenue while still providing value to taxpayers. Understanding Free Tax Preparation Services Free tax preparation services are platforms or organizations that allow individuals, usually with simple tax situations, to file their taxes at no cost. These services are often offered by private companies, non-profit organizations, or government programs. They cater to individuals with straightforward returns, such as people with standard deductions or basic income sources like wages and salaries. The aim is to make tax filing accessible, affordable,...