During the 2018 tax season, 70% of taxpayers received a tax refund. However, it was significantly lower than what most people expected.
This is primarily due to the fact that many Americans were unaware of how the changes in the tax laws affected their tax bracket.
Paying taxes can be stressful and expensive. However, it does not have to be so. Many people are eligible to pay taxes for free. This article will give you insights on the best way to file taxes for free.
1. Check out the Free File Alliance
The Free File Alliance is a group of non-profit tax software providers.
They have partnered with the Internal Revenue Service (IRS) to process federal returns for free. This service can be beneficial to the millions of Americans eligible to file taxes for free.
The tax software provided within the Free File Alliance includes:
• Tax slayer
• ezTaxReturn.com
• H&R Block’s Free File
• Turbo Tax-Free File Program
• FileYourTaxes.com
• TaxAct Free File
• FreeTaxUSA IRS Free File Edition
• FreeTaxReturns.com
• 1040NOW.NET
• eSmart Free File Edition
• 1040.com Free File Edition
• Online Taxes at OLT.com
Taxpayers who have an adjusted gross income of below $66,000 qualify to use the software programs.
It is important to note that requirements may differ from one tax prep company to the next. For instance, you can only use the Turbo Tax Free File program if you have an AGI below $ 34,000 though there are a few exceptions.
Even filers with complicated tax cases can use the Free File Program. The software providers offer up to 34 core forms.
These include Schedule A for itemized deductions, 1040 form, Schedule D for investment gains and losses as well as other specialized tax forms.
Using the Free File Alliance to file taxes is easy, safe and more importantly free to use.To make sure you are indeed using a free IRS-partnered program, use the IRS portal to access the Free File program.
2. Try Free Fillable Online Forms
Even individuals earning more than $66,000 can file for free via Free File Alliance online fillable forms resembling the paper forms.
This is an option for the higher income earners comfortable handling their taxes as online fillable forms are not as user-friendly as the tax software provider platforms.
3. Use the Software Provider’s Free Form
There also free tax software products that may be offered by tax providers. For example, for simple tax federal returns, you can use the TurboTax Free Edition.
Eligible filers can also access free returns filing from the H&R block’s online free product.
These free tax filing products are tailored to cater for the needs of filers with simple tax-filing situations rather than just those with a low adjusted gross income.
Individuals who need to use multiple forms or want to claim various complicated deductions may not qualify. Free products may also include state returns.
It is important to note that some individual software providers may charge some fees for upgrades, unlike the Free File Alliance. Be careful and do your research before choosing a free software provider.
You may get the free services in exchange for your data allowing the software provider to use it for other purposes. Read the terms and conditions to understand better what using their software entails.
4. Consider the My Free Taxes Initiative
H&R Block and United Way have a partnership that helps taxpayers making less than $ 66,000 to file their federal and state taxes for free.
All you need to do is enter a secure H&R Block website which will handle the filing process. You can access this platform via desktop or mobile.
5. Try the Military OneSource
The Military OneSource can only be used by qualified military personnel. It is a free tax preparation software designed to address the unique tax situations for people who have served in the military.
6. Seek Assistance
You can get help filing taxes for free from multiple community programs. Good examples are the Volunteer Income Tax Assistance and Tax Counseling for the Elderly.
Such programs help low-income families and the elderly with IRS-partnered tax help. You can find such programs via the IRS website.
Be careful to avoid scammers when using free tax resources. Some individuals offer free help in order to steal your personal data or tax refund. Only work with groups that have ties with legitimate backers such as the IRS.
7. Take Note of the Benefits Within Your State
Some states have partnered with software companies that join the Free File Alliance to provide free state returns.
These states have a Free File Program that mimics the federal free file program. Some states even have custom tools such as free fillable forms that filers can use on the tax site.
Best Way to File Taxes: Filing Taxes Online
Tax prep companies offer their services via various channels. You can download their software, buy a service CD or do everything online.
The ease of use and the level of support you will get will be relatively the same for all methods. However, you will get better data protection with online fillers.
This is because personal data is stored on your computer when using a software or CD. The information will, therefore, be more vulnerable.
As such, it is important to ensure that your antivirus software is up to date and fully functional.
Things to Put in Mind
It is important to find out how the new tax laws will affect you. This can help you identify possible deductions and also allow you to receive more tax refunds. To receive your refund quickly, try signing up for direct deposit.
This will be faster than waiting for your check in the mail. Also, electronic refunds cannot be stolen from the mailbox.
Always beware of phishing and other scams. Identity thieves can use lookalike websites and unsolicited emails to trick you into divulging personal data.
When Should You Start Preparing to File Taxes?
The above are some of the best ways to file taxes for free. But first, you must check the IRS website to confirm you have all the necessary paperwork. It is also very important to start early enough before the deadline.
If your taxes are complex, it is better to seek help than make mistakes that could be costly. At Gary M. Kaplan C.P.A, you will receive personalized attention for your unique tax requirements. Get in touch with us today for a free consultation.
