How to File Your Taxes for Free
There's only about a month left to file taxes, which means you might be scrambling to submit everything to an accountant or dreading what's required to complete all the paper work yourself.
The other downside of being a procrastinator with taxes: You're victim to price hikes from tax software providers. Companies like H&R Block, TurboTax and TaxAct may be inclined to raise prices ever so slightly as crunchtime for filing creeps up. But plenty of tax filers can actually submit their returns for free. You just need to know if you're eligible and where to look.
Do you earn $62,000 or less a year (at least in adjusted gross income)?
Earning $62,000 or less a year in adjusted gross income, or AGI, makes you eligible for free federal filing and quite possibly state as well. The IRS teamed up with 13 online tax software providers, including some household names like TurboTax and H&R Block, to offer free filing.
Just make sure to navigate to the tax software of your choosing from the IRS' "Free File" landing page, otherwise, you may not be prompted to free file if you go directly to the tax preparer's homepage.
The United Way also provides access to both free federal and state returns through MyFreeTaxes, which is powered by H&R Block and is separate from the IRS program.
But check the fine print before choosing
Be sure to read the fine print listed on the IRS page. Not every tax software provider offers free returns if you're under $62,000 AGI. Some have lower thresholds. TurboTax, for instance, requires your AGI to be $31,000 or less, or be $62,000 and activity military. H&R Block does approve up to $62,000 if you're between ages 17 to 50.
Other providers, like ezTaxReturn, require the $62,000 or less at any age, but you have to live in one of 19 eligible states.
Filing your state return for free (regardless of AGI)
Some online tax preparation software allows filers with an AGI of $62,000 or less to file both federal and state returns for free. OnLine Taxes does if your AGI is between $13,000 and $62,000 regardless of age. H&R Block allows both free federal and state return for filers with an AGI of $62,000 or less who are age 50 or younger.
If you really aren't keen on paying to file a state tax return, but make more than $62,000, then you still may be able to file for free. Certain states provide the ability to file for free through state-run filing services. This does mean you'd file federal separately and most of these sites don't offer preparation assistance. You may find it beneficial to still prep your return through a site like TurboTax or H&R Block and then use the information to file a free state return.
Examples of states with free filing include:
-- Alabama for any income level through My Alabama Taxes
-- California via the CalFile program, for those whose AGI is $178,706 (single filers) and $357,417 (joint filers)
-- Year-round residents of Maine can file for free using I-file Tax
-- New Yorkers can file state returns for free via its Web File system without income restrictions if they are full-year residents, aren't claiming certain tax credits and avoid a few other restrictions
You can find a full list of free filing by state at MagnifyMoney.com.
Other programs for eligible groups
There are plenty of other programs available to help those who are low-to-moderate earners (with incomes of $54,000 or less), disabled, senior citizens or have limited to no English proficiency.
Organizations like Volunteer Income Tax Assistance, VITA for short, help service-eligible individuals and offer in-person services in community locations such as schools and libraries.
Seniors, defined as ages 60 and up, can also use the Tax Counseling for Elderly, or TCE, program. Unfortunately, senior citizens are often targets of scams during tax season and should be wary of those to whom they are providing personal information. Use IRS.gov tools to find VITA or TCE centers and be sure you haven't landed on a dummy page from sites like IRS.com or IRS.org
You can see if there is a VITA or TCE center near you with help from the IRS at irs.treasury.gov/freetaxprep/.
Beware of tax scams
No matter how you plan to file taxes, it's important that you're proactive about protecting your identity.
-- Don't file taxes on an unsecured or public wireless connection
-- Be sure there's an https:// before the URL of any site you're using
-- Be wary about the sites you're using
-- Double-check that any tax preparation software is legitimate and doesn't have a bunch of complaints or warnings of scams or fraud
-- Finally, avoid thieves looking to part you with your money by impersonating the IRS
If someone calls claiming to be an IRS official then be polite but hang up and call the IRS directly at 1.800.829.1040 to see if they did indeed try to make contact.
Erin Lowry writes about personal finance and serves as the content director for MagnifyMoney.com, a site dedicated to helping consumers save money by finding simple and transparent financial products. She is also the founder of the personal finance blog Broke Millennial.
