File Your Taxes For Free
It’s tax time. We’re a little over a month away from April 15th. If you meet certain criteria, you may just be able to file your taxes for free, even e-file. Here are three ways you might be able to file your taxes for free, two of which I’ve used:
1. TaxAct Standard (taxact.com)
With TaxAct you can a e-file a 1040, 1040A, and 1040EZ for free. Your state return, however, will be $13.95. Hopefully you’re like me and live in a State with no income tax.
I began using TaxAct back in tax year 2001. That was the first year I did my taxes by myself (my Father is a CPA with a tax practice) and so I wanted to do them as cheap as possible. Back then you couldn’t e-file for free like you can today, so I would use the online software (from a library computer) and complete the 1040, print it out, and mail it in. I did this for 6 years, up until this year. I even did my wife’s while we were dating.
2. Free File (IRS.gov)
Free File is a free federal income tax preparation and electronic filing program developed through a partnership between the IRS and the Free File Alliance LLC. The Free File Alliance is a group of tax software companies you can choose from when filing through Free File. Your adjusted gross income must be $54,000 or less.
I believe this is actually how I discovered TaxAct back in 2001. At the time they were involved with this program. Now it looks like just 4 companies are involved: CompleteTax, FreeUSATax, TurboTax® Freedom Edition, and Liberty Tax Service. The IRS site claims that some companies offer state return filing for free.
3. TurboTax® Free Taxes Online (turbotax.com)
With TurboTax® Free Taxes Online you can file a 1040EZ and other “simple” returns. Your state will cost you $25.95. Yikes! I looked up the other “simple” returns and found that they cover the following:
The good thing about this version is that you can e-file for free and there is no income threshold. So if you live in a state with no income tax, have income higher than $54k, and don’t have any business income then this is the service for you.
Additional Tips
- The IRS has an extensive list of other available e-filers on the web.
- If you don’t qualify for the 3 above or you’re not comfortable using online services, try this method: go in for half with a friend on TurboTax in the box. Each piece of software is good for two computers. This is actually what I’m doing this year. The box of software cost us $20 ($10 a piece). While I’m not finished with this year’s return, I have no complaints so far. To be honest, I feel more comfortable knowing I’m using the Intuit product over Tax Act because we bought a house in 2007 and this is the first year we’ll likely be itemizing.
How do you or did you file your taxes this year?
Photo: by Telstar Logistics
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{ 3 comments }
Thanks for the mention
I was a big fan of TurboTax till I got in too deep with investing, kids, houses, etc, and I figured the $150 I paid him was well worth it for my piece of mind that it was getting done right…
@Hank – You mean you paid a CPA? I agree, there comes a point where “free” doesn’t cut it. And $150 isn’t bad. That’s a good deal for a CPA.
I’m a CPA (non-practicing) so I have no excuse. I do them myself.
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