Free Online Preparation and Filing of Federal Income Tax Forms
Did you know that the Internal Revenue Service has been working with tax software companies to provide taxpayers with free online preparation and filing of federal income tax forms? Some of these free online services became available as early as 2003. The tax software companies offering these free services form the Free File Alliance. Each member of the Free File Alliance has its own requirements that a taxpayer must meet in order to be eligible for their free service. Eligibility is determined by various factors such as state residency, military status, adjusted gross income, and the eligibility to file the Earned Income Tax Credit or Form 1040EZ. In addition, taxpayers who prepare their own taxes and would normally file paper returns are most likely to benefit from the alliance.
Determine Your Eligibility and File
Taxpayers can visit the Internal Revenue Service’s government website in order to find members of the Free File Alliance and determine whether they are eligible for their services. Once a taxpayer determines his eligibility, he will exit the Internal Revenue Service website and enter the website of a Free File Alliance member. The taxpayer will then be prompted to enter their information and proceed in preparing and filing their federal taxes online. The preparatory steps of online filing can help taxpayers discover which credits and deductions they are eligible for.
Experience the Benefits
Many taxpayers can now experience the benefits of online federal filing at no charge. Taxpayers benefit from the free online filing service because it:
can reduce tax return preparation time
can catch mathematical errors and increase accuracy
results in quicker refunds,
provide filers with an acknowledgement of return receipt
allows for electronic tax payments if desired.
Free File Alliance members may also offer online state tax filing for a fee, or offer refund anticipation loans, but purchasing services to accompany the free online filing of federal taxes is optional.