The Internal Service Revenue is providing US tax payers a program that will allow them to file their taxes more easily and for free.
Free file is a free federal income tax preparation and electronic filing program that is created through a joint venture between the Internal Revenue Service and the Free Alliance LLC, a group comprised of tax software companies from the private sector.
Eligible taxpayers may use commercial online software provided by the Free File Alliance companies – and not the IRS – to prepare and file their federal income tax returns.
The IRS list of member companies includes links to existing programs. Some tax companies have stricter requirements than the IRS guidelines. Take TurboTax for instance. To be able to use this tax software your income must be $30,000 or less.
The Free File program is applicable only to your federal return; it is not applicable to state tax return. However, some users have found that once you have calculated the figures for your federal income tax forms, you can actually use a lot of them as a basis for completing your state income tax form. You should also try looking at your state website. Some states allow tax payers to file taxes for free through their website.
The IRS Free File program has been around since 2003 and since that time over 19.2 million returns have been filed through it, allowing tax payers to save millions of dollars.
There is one important thing to remember, and that is not everyone is eligible to use Free File.
Free File is available only to tax payers who have an Adjusted Gross Income (AGI) of $54,000 or less. The offers of different companies may be limited to particular states and come with other criteria. Each individual tax preparation software company places its own requirements for eligibility.