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It's that time of the year again. Time to take out your W2, 1099 tax forms, charity donatin receipts, and any other financial statement that you have been saving all year. Yes, it's the dreaded tax season. For all the time and effort that we are expected to spend on preparing our tax returns, IRS has somewhat rewarded us by offering a chance to e-file our tax returns for free through the Free File Program.
Free File Program
Free File is a free federal income tax preparation and electronic filing program started by Internal Revenue Service (IRS) and the Free File Alliance LLC. Free File Alliance is represented by a group of private sector tax software companies such as Intuit, H&R Block, Liberty Tax, andTaxAct. Since 2003, more than 19.2 million tax payers have filed their federal tax returns for free through the program.
Electronic Filing Benefits
- Get a faster refund, in as little as 10 days with Direct Deposit.
- File your taxes any hour of the day or night.
- Save paper—and that helps all of us.
- Benefit from Free File’s automatic checks for accuracy.
- Receive a quick confirmation within 48 hours that your return was received.
- Know that your return is safe and secure.
Who Is Eligible
The official requirement for Free File Program is that taxpayers must have Adjusted Gross Income (AGI) of $54,000 or less in 2007. However, individual tax software company may set its own eligibility requirements. For example:
- TurboTax® Freedom Edition: Free tax return preparation and e-file if your Adjusted Gross Income is $30,000 or less or you will claim EITC, or you are active duty military with an AGI of $54,000 or less.
- H&R Block's TaxCut Free File: Free federal online tax preparation and e-file if your adjusted gross income is $54,000 or less and you are age 50 or under.
- Free TaxACT: Free federal online tax preparation and e-file if your adjusted gross income is $54,000 or less and you are age 19 through 54 years old. Extensions e-filed for free.
Note: Each tax software company's eligibility requirements may have changed. Please refer to IRS's "Guide Me To A Company!" page for more updated information.
How Do I Start?
It's absolutely necessary that you start your tax return by going through IRS's Free File website. If you go to a company's website directly, your tax return might not qualify for the Free File Program and therefore you might be charged a fee for preparation and electronic filing. Also, while you are going through your tax return, some companies will try to sell you extra services for a fee. You are under no obligation to buy any of the company's other products or services to qualify for Free File. If you don't finish your return in one session, you should be able return directly to the company's website next time to continue your tax return. Make sure you are not being charged any fee before you submit your tax return.
Once you have submitted your tax return electronically, it usually takes 1-3 business days to get your results back. If you are expecting a refund, you can check on the status of your refund 7 days after you e-file by going to IRS's "Where's My Refund" page. Go here for more information on IRS's refund schedule.
Final Thoughts
One drawback of the Free File Program is that you are not going to get much support if your tax return is complicated. Each tax software company will try to sell you their deluxe products/services which are bundled with better customer support. Some companies might even offer live assistance from a Tax Professional. But for most us with simple tax returns, the Free File Program is the perfect gift from IRS.
Coming Up Next : State Free Tax Preparation and Electronic Filing
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- Irs Free File Alliance - Efile Your Taxes for Free
- Free Tax Help for Last-Minute Tax Filers!
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