Free Online Tax Preparation and E-Filing From the IRS
Published on - March 15th, 2007 (Modified on - January 4th, 2008) (by J.D. Roth) The Internal Revenue Service offers a program that allows two-thirds of U.S. taxpayers to electronically file their tax returns for free.
The Free File program is a free federal tax preparation and electronic filing program for eligible taxpayers developed through a partnership between the Internal Revenue Service (IRS) and the Free File Alliance LLC, a group of private sector tax software companies. Since Free File’s debut in 2003, more than 15.4 million returns have been prepared and e-filed through the program. Free File allows taxpayers with an Adjusted Gross Income (AGI) of $52,000 or less in 2006 to e-file their federal tax returns for free. That means 70 percent of all taxpayers — 95 million taxpayers — can take advantage of the Free File program.
The IRS list of participating companies includes links to the available programs. Some companies have more restrictive requirements than the IRS guidelines. For example, in order to use TurboTax, you must earn $28,500 or less.
Charlie at PearBudget chose H&R Block’s TaxCut, which he found easy to use:
They’ve done a terrific job of explaining everything you need to know, and they’ve made the interface extremely usable and clear. I finished my federal taxes in about four hours, but part of that was time spent looking for receipts.
This Free File program only applies to your federal return; it does not include your state return. From my experience, though, once you’ve computed the numbers for your federal income tax forms, you can use many of them as a basis to complete your state income tax form.
This is a great deal for many people. Check into it if you haven’t done your taxes yet. For more info, read the Free File FAQ at the IRS web site.
Speaking of “free” and “taxes”, Ramit at I Will Teach You to Be Rich is bringing in an expert to answer questions:
I have a CPA who’ll answer tax questions for free. Your readers can ask anything on their mind and my guy will try to write a response to the best questions. This will be a series going right up until the end of tax season.
GRS is committed to helping our readers save and achieve your financial goals.Savings interest rates may be low, but that’s all the more reason to shop for the best rate.Find the highest savings interest rate from Ally Bank, Capital One 360, Everbank, and more.
This article is about Money Hacks, News, Taxes
Disclaimer: This content is not provided or commissioned by American Express. Opinions expressed here are author's alone, not those of American Express, and have not been reviewed, approved or otherwise endorsed by American Express. This site may be compensated through American Express Affiliate Program.
Discover is a paid advertiser of this site. Reasonable efforts are made to maintain accurate information. See the Discover online credit card application for full terms and conditions on offers and rewards.
SEARCH FOR RECENT ARTICLES




H&R Block/Travelocity are offering a free copy of Taxcut Premium and Deduction Pro for download. After you add to cart, make sure you remove Extended Download Protection from cart to get it all free.
link
loading....
I just used H&R Block’s free online version, as well, and I had no problems. Helped me pick out the right education credit, as well. Unfortunately the state return wasn’t free. Oregon has three listed on the DOR site, but I ended up just doing it on paper. Might be worth finding one that can do both your state and federal for free, just to get it done in one go.
loading....
Actually, the good news is nearly *every* taxpayer can take advantage of filing their taxes for free.
Just print your taxes out, put them in an envelope with a couple stamps (OK, it’s not *completely* free), and drop them off at the post office.
It’s easy, and nearly free!
loading....
I did our CA state tax return for free online at http://www.ftb.ca.gov/ It was linked from irs.gov. There are sites where people can do their state taxes for free!
loading....
I prepared my own on paper until 2003. Then I started using HR Block online- free the first year and I think 9.95 every year since. This year I paid extra to file state at the same time. In years past my state had free eFile, but I moved and wasn’t familiar with the new state’s setup.
loading....
The IRS once wanted to provide free tax software for everyone. The corporate interests felt this would not be in their economic interests. What you have above is the result.
loading....
I qualified for free file, but I needed to take both the energy star and mortgage certificate credits. I tried three different sites (including H&R Block) and none of them said up front which forms they did and didn’t support. Was 2/3 of the way through filing before I found out I couldn’t use the service. Finally gave up and mailed the thing in, then waited 5 weeks for the refund.
If states can provide a means for their residents to file online at no charge, why can’t the federal government?
loading....
I’ve used the FreeFile online system since 2001 or 2002. My first year, I used some medium-sized company… maybe TurboTax. But since then, I’ve used H&R Block. The software just works, and it’s easy to use.
Plus, it’s worth it to me to pay the state fee since it means I don’t have to use my state’s horrible phone system or install extra software on my computer.
Speaking of computers, let me bring up two points, one of which is relevant here. First, the H&R Block online service WILL work with non-Microsoft operating systems. So those of you with a Mac can use it, and get support. But even if you use Linux, like me, the service works. It’s not supported, and you get a nag screen, but you can bypass that and use the service just fine.
That brings up the second point, free alternative software, as a possible subject. I’d be willing to write a small article for you about the benefits and availability of free (as in speech and beer) software. For example: I run Linux at home, and therefore I legally don’t pay money for operating systems or software. When I did run Windows, I used the freely available OpenOffice rather than the expensive MS Office. I ran Gaim rather than AIM, Yahoo, or MSN to keep from seeing ads for ridiculous movies and products. I ran Firefox, which reduced the chance of me getting spyware (an infestation would cause non-computer nerds to spend money on repair). I ran Thunderbird, which reduces the chance of email worms (which again causes repair bills).
loading....
[...] advantage of the Free File program. The IRS reports that 70% of all taxpayers qualify for free electronic tax filing. If your 2006 [...]
loading....
[...] advantage of the Free File program. The IRS reports that 70% of all taxpayers qualify for free electronic tax filing. If your 2006 [...]
loading....
Last Minute Tax-Filing? Extended Post Office Hours and More…
Isn't it weird that there isn't a central list of post offices at, oh I don't know, say, USPS.com, that tells you which post office branches are going to be open late tonight for last-minute filers? Or is there a list and I simply couldn…
loading....
I need to fill out a 2001 return. Where can I go to do that online?
loading....
My son forgot to file his 2006 taxes. Is there a website where I can file them for him for free?
loading....
I’m about to file my taxes online for this year(2009), last year i used turbotax because i had heard most about that site. But, this year there seems to be alot more hype on many different sites, can anyone help and give me their opinion or advice on which site/service i should use to get the best refund for the lowest cost, or if i am lucky free. I appreciate any help…thanks to all!! Happy tax filing!
loading....