Free File

Definition:

Free File is a program started by the IRS to help the lower income tax payers file their taxes for free. Free File has agreements with several different companies that offer a free version of their tax software to individuals who qualify. In order to use Free File you must access the programs through the IRS website. The programs are also available in Spanish.

Free File is available to individuals with an adjusted gross income level of less than $60,000.00, as of 2015.

This is a great program that allows these individuals to have access to the tax preparation software for free. You simply visit the IRS’s website and decide which program best suits your needs. Some of the programs will also cover filing your state taxes for free. This savings can add up quickly. The programs allow you to e-file, which will make filing your taxes and getting your refund much easier and quicker.

This can save you the cost of going to a tax accountant. The software instructions are easy to follow. The software used is similar to that at the major tax preparation businesses, and you can save yourself the hassle of going into one. You will need to be prepared with all of your current tax information and a list of all of the forms that you will need to file your taxes. You are responsible for any information you do not report correctly on your taxes. You can be prosecuted and fined.

Be sure that you answer all of the questions honestly.

The process should only take a few hours. The time needed will vary as it depends on how complicated your taxes are. If you are self-employed or you have a complicated tax situation, you should expect it to take a bit longer. If you are not comfortable doing the taxes yourself on your computer or you do not have your own computer, you can qualify for free help filing your taxes.

Contact your local government or community center to learn about additional resources available in your area. Many libraries will offer a day to help, and some churches will have information about local resources you can use.

If you are filing and have a business or two under your social security number, you may consider going to a tax accountant or upgrading your software. The free file software is very basic, and while it meets most individuals’ needs you may want to make sure that you cover your bases when it comes to itemizing and your deductions. If you begin prepping to file your taxes at the end of the year, this process should be very easy. You just need to set a side a few hours to get it done.

Remember the sooner you file your taxes, the sooner you will receive your tax refund. If you qualify for Free File, you may also qualify for the Earned Income Credit. The tax software will take you through the questions to see if you qualify for the credit and other available credits or deductions. Be sure that you have gathered all of your W-2s, as well as any statements from your mortgage company, student loan company and banks that your receive. This will make filing your taxes much easier.