The cost of tax preparation fee may be affordable to some but for people in the low income bracket, even $200 fees that most tax franchise chain charges is a lot. The IRS understands this which is why they have made partnership with various software companies to offer free tax filing online. These software companies formed a group called the Free File Alliance.
The Free File program is available only to families who have an adjusted gross income (AGI) of $58,000 or less for tax year 2010. However, each companies who participated in the program may have their own eligibility requirements such as geographical location, much lower AGI than the $58,000, specific states and other criteria. Some companies offer state tax preparation as well for a nominal fee while others offer free state filing if you qualify.
The advantages of using the Free File Program are:
- It’s FREE, FAST, and SECURE
- No need to be a tax expert as the software will do the calculation for you
- Helps you with the deductions and credits that are available to you
- Submit your taxes electronically and can print out a copy
- Can also avail the direct deposit program for faster refund.
Participating Software Companies offering free federal tax filing valid in all states:
If you live in certain states, you may not be able to avail the free filing of some of the participating software companies. However, below are the select companies who offer free filing valid in all states. Please visit the software companies website to find out their current requirement or if you need additional information.
Online Taxes at OLT.com: To qualify for free online federal tax filing, your adjusted gross income (AGI) must be $58,000 or less and you are age 51 or younger. Free extensions. State returns only cost $7.95 per return. Other free offers are free amended returns for people who use the sites for their original return and free Customer Service- E-mail, Live Help and 1-888-OLT-4-TAX with hours offered 7 days per week during tax season.
H&R Block Free File: To qualify for free online federal tax filing, your adjusted gross income (AGI) must be $58,000 or less and you are age 51 or younger. Â Offers free state filing if you qualify and only $14.95 per state return if you don’t.
Free TaxACT: To qualify for free online federal tax filing, your adjusted gross income (AGI) must be $58,000 or less and you are age 19 through 55. State filing only cost $14.95 per return. Also offers free extensions and free unlimited tax help from TaxACT TaxPayer Support.
FreeTaxUSA® IRS Free File Edition: To qualify for free online federal tax filing, your adjusted gross income (AGI) must be $58,000 or less and you are age 22 through 64 years old. Offers free extensions and only $9.95 to file your state return tax.
eSmart Tax powered by CompleteTax: To qualify for free online federal tax filing, your adjusted gross income (AGI) is $32,000 or less. Offers free extensions and only $19.95 for filing state tax returns.
ICANFREEFILE: To qualify for free online federal tax filing, your adjusted gross income (AGI) is $31,000 or less or if you qualify for the Earned Income Tax Credit. Charges $9.99 for e-filing but no charge to print. Offers free extensions and prepares state tax return only for the following states: California, Michigan, Montana, New York, Pennsylvania.
TurboTax® Freedom Edition: To qualify for free online federal tax filing, your adjusted gross income (AGI) is $31,000 or less or if you are active military with an AGI of $58,000 or less or you qualify for the Earned Income Tax Credit. Offers free extensions. Offers free state filing for the following state if you qualify: AL, AR, AZ, GA, IA, ID, KY, MI, MN, MO, MS, NY, NC, ND, OK, OR, RI,SC, VA, VT, WV. And only $14.95 if your state does not sponsor free state filing through the Free File Program.
Participating Companies offering free federal filing but only if you live in certain states:
123 Easy Tax Filing, LLC: To qualify for free online federal tax filing, your adjusted gross income (AGI) must be $58,000 or less and you are age 70 or younger and you live in one of the following states: AK, AR, AZ, CA, CO, CT, GA, IA, ID, IL, KS, KY, MA, MD, ME, MI, MN, MO, NC, ND, NE, NJ, NM, NY, OH, OK, PA, RI, SC, SD, UT, VA, VT, WI, WV or WY. Free extensions.
TaxSimple: To qualify for free online federal tax filing, your adjusted gross income (AGI) must be $58,000 or less and you are age 66 or younger and you live in one of the following states: AL, AR, AZ, CA, CO, CT, DC, DE, HI, GA, IA, ID, IL, IN, KS, KY, LA, MA, MD, ME, MI, MN, MO, MS, MT, NC, ND, NE, NH, NJ, NM, NY, OH, OK, OR, PA, RI, SC, SD, TN, UT, VA, VT, WI, WV or WY. Free extensions.
ezTaxReturn.com: To qualify for free online federal tax filing, your adjusted gross income (AGI) must be $58,000 or less and you live in one of the following states: AL, AR, AZ, CA, GA, IL, LA, MA, MI, MS, NC, NJ, NY, OH, PA, VA or WI.
FileYourTaxes.com: To qualify for free online federal tax filing, your adjusted gross income (AGI) is between $10,000 and $58,000 and you live in one of the following states: AL, AR, AZ, CA, CO, CT, DC, DE, FL, GA, HI, IA, ID, IL, IN, KS, KY, LA, MA, MD, ME, MI, MO, MS, MT, NC, ND, NE, NJ, NM, NY, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VA, VT, WI, WV or WY. Free extensions.
TaxSlayer: To qualify for free online federal tax filing, your adjusted gross income (AGI) must be $58,000 or less and you are age 25 or younger, or age 65 or older. Free for all Active Military with AGI of $58,00 or less. Also your return is free if you qualify for Earn Income Tax Credit or if your AGI is 10,000 or less regardless of age. This federal offer is valid if you live in one of the following states: AL, AZ, AR, GA, ID, IA, KY, MI, MN, MS, NY, NC, ND, OK, OR, RI, SC, UT, VT, VA and WV. Free extensions.
Free1040TaxReturns.com: To qualify for free online federal tax filing, your adjusted gross income (AGI) must be $58,000 or less and you are age 72 or younger and you live in one of the following states: AK, AL, AR, AZ, CA, CO, CT, DC, DE, HI, GA, IA, ID, IL, IN, KS, KY, LA, MA, MD, MI, MN, MO, MS, NC, NE, NJ, NM, NY, OH, OK, OR, PA, RI, SC, UT, VA, WI or WV. Free extensions.
1040NOW.NET: To qualify for free online federal tax filing, your adjusted gross income (AGI) must be $58,000 or less and you are age 64 or younger and you live in one of the following states: AL, AR, AZ, CA, CO, CT, DC, DE, GA, HI, IA, ID, IL, IN, KS, KY, LA, MA, MD, ME, MI, MN, MO, MS, MT, NC, ND, NE, NJ, NM, NY, OH, OK, OR, PA, RI, SC, UT, VA, VT, WI or WV. Free for all Active Military with an AGI of $58,000 or less. Also qualify if your AGI is 9,000 or less and you live in one of the following states: AK, FL, NV, SD, TX, WA or WY.
EfileTaxReturns.com: To qualify for free online federal tax filing, your adjusted gross income (AGI) must be between $4,000 and $58,000 and you live in one of the following states: AL, AR, AZ, CA, CO, CT, DC, DE, GA, HI, IA, ID, IL, IN, KS, KY, LA, MA, MD, ME, MI, MN, MO, MS, MT, NC, ND, NE, NH, NJ, NM, NY, OH, OK, OR, PA, RI, SC, SD, UT, VA, VT, WI or WV.
OnlineTaxPros.com: To qualify for free online federal tax filing, your adjusted gross income (AGI) must be between $4,000 and $58,000 and you live in one of the following states: AL, AR, AZ, CA, CO, CT, DE, GA, HI, IA, ID, IL, IN, KS, KY, LA, MA, MD, ME, MI, MN, MO, MS, MT, NC, ND, NE, NJ, NM, NY, OH, OK, OR, PA, RI, SC, UT, VA, VT, WI or WV. Free extensions.
Just a reminder to visit each companies above to see their current requirements as those may have change on or after the publication of the article. You can also use this special form by the IRS to find the right software companies for you: Fill-in IRS Form to select company.
i hate taxes sometimes specially here in philippines becoz government used to collect taxes but the thing is we dont know where the money goes to…nothing really improvement happend when they always collect taxes…