How to File Your Taxes Online for Free
Anyone with simple tax returns can file their taxes for free. Here are some options—and how to use them.
By Octavio Blanco
For the past six years, Milagros Melendez, a 72-year-old retired home-care worker, has filed her taxes digitally with the help of volunteer tax professionals in an immigrant-assistance program.
The program, called the Volunteer Income Tax Assistance (VITA), is just one of many free tax filing options available to consumers.
For Melendez, who lives in a predominantly Latino neighborhood in Northern Manhattan, the free service offers peace of mind. Her tax preparation is performed by volunteers who speak Spanish and who must take and pass tax-law training that meets or exceeds Internal Revenue Service standards.
“I’ve never dedicated myself to learning about taxes, it just wasn’t my area of expertise,” she says.
Plus, now that she’s retired and on a fixed income, using the free tax prep service eliminates a financial burden. Before, she would go to her neighborhood tax preparation service, a travel agency, which, she says, charged her around $125.
And since the service files her taxes digitally, the time for processing and delivery of any refund is expedited.
Services offering free digital filing have become especially important during this tax season, because the IRS has warned about pandemic-related delays. Refund delays can be annoying, but for lower-income taxpayers, they can bring serious financial consequences. Paper tax returns are all but guaranteed to encounter long delays, the IRS says. This year’s deadline for filing your federal taxes or requesting an extension is April 18.
“A tax refund is the largest windfall that many Americans will receive all year,” says Bankrate’s industry expert Ted Rossman. But with the number of free services available, Rossman says, many taxpayers should be able to file taxes online. And if they have simple returns, they can even file themselves without the help of an expert.
With that in mind, here are some options to consider.
File a Digital Return Yourself for Free
Anyone who wants to file their own taxes digitally can do so for free using the IRS’ Free File System. If you earn $73,000 or more, it allows you to download a digital version of the 1040 tax form that you can fill out yourself and file digitally to the IRS, free of charge. No need to go to the Post Office to get the paper version.
But be prepared: Though the digital version performs some basic calculations, you’ll have to do the rest of the math yourself. And at this income level, you’re not eligible for free tax help.
Also, check with your state tax office to see if it has any free digital services.
Important Reminders
It’s easiest for simple returns. While there are many free digital forms available to download, most taxpayers will only need a 1040, which is straightforward if you’re reporting a simple tax return composed mainly of income, without itemized deductions.
Before you begin, make sure you have the following information: Social Security numbers and birthdates for everyone on your tax return. The adjusted gross income (AGI) from last year’s federal tax return. A valid email address, and a U.S. phone number. You’ll also need a copy of your prior year Federal tax return to confirm your AGI. All income and tax statements you received for the current year tax return, such as Forms W-2, W-2G, 1099-G, 1099-INT, 1099-MISC, 1099-R, and any other income statements. Your current year estimated tax payment amounts, if any, and your bank account information to get your refund by direct deposit or to electronically pay any taxes owed.
You’ll need to create a new Free File Fillable Forms account, even If you used the program in previous years. This account is separate from your irs.gov account, which you don’t need to update.
How to Find It
Go to the Free File webpage on the irs.gov website and click the “Use Free File Fillable Forms” button. >> Review the information on the page and, when ready, click on the “Start Free File Fillable Forms” button. >> This will bring you to a page where you’ll be given even more important information to review.
When ready, click the “Start Free File Fillable Forms” button displayed on the page. >> Here you’ll input your personal information and create your annual account. >> Once submitted, you’ll be sent a confirmation email from customer_service@freefilefillableforms.com. >> From the email you’ll be given a link to log in to your account and access the 1040, which you can now complete and file to the IRS. If you need help filling it out, detailed step-by-step instructions are available from the IRS.
When you finish, make sure to print out your return and keep it for your records. Accounts and tax return information are erased each year, on October 20, according to the IRS.
File a Digital Return With Free Tax Help
If you earn $73,000 or less, you’re eligible for free tax help from companies that have partnered with the IRS.
A tax prep service walks you through the filing process and makes sure you have the right information and documents. But it also performs important (and sometimes complicated) calculations on your return. Some services even include a free state tax return.
Important Reminders
You must access the services through the IRS website. If you go to the providers directly, any account you create there will not work on the Free File system.
The tax prep service is a public/private partnership between the IRS and third-party providers. This year’s partners are: 1040Now.NET, ezTaxReturn.com, FreeTaxReturn.com INC, FileYourTaxes.com, On-Line Taxes at OLT.com, TaxAct, FreeTaxUSA, and TaxSlayer.
Two of the third-party services offer their tool in Spanish: ezTaxReturn.com and TaxSlayer. None of the remaining services offer any language other than English.
How to Find It
Go to the Free File webpage on the irs.gov website and click the “Choose an IRS Free File Offer” button. >> From this page you can choose to browse the offerings or to use the “finder tool” which pinpoints the service best suited for you.
For the browse tool, click the “Browse All” button. >> Here you’ll see each of the services, along with important information to help you decide which is the right one for you.
For the finder tool, click on the “Start Lookup Tool” button. >> In the following pages you’ll be asked to input important personal information that will be used to recommend an appropriate tool.
Once you choose (or get a recommendation) a guided tax-prep service, click on the “View This Offer” button. >> You’ll be sent to the partner’s free site where you’ll follow the prompts to set up your account and begin your filing.
VITA and Tax Counseling for the Elderly (TCE)
These twin programs offer free tax return preparation and counseling to qualified individuals.
VITA offers free tax help to people who generally make $58,000 or less, those who have disabilities, and people with limited English proficiency.
The TCE program offers help for those who are 60 years of age and older, and specializes in pensions and retirement-related issues, according to the IRS. Find a full list of the tax services these programs provide.
Important Reminders
Make sure to bring these important documents: “Photo ID, Social Security cards for you, your spouse, and dependents. Wage and earning statements (Forms W-2, W-2G, 1099-R, 1099-Misc) from all employers. Interest and dividend statements from banks (Forms 1099). Health insurance exemption certificate, if received. A copy of last year’s federal and state returns, if available. Proof of bank account routing and account numbers for direct deposit such as a blank check. Total paid for daycare provider and the daycare provider’s tax identifying number such as their Social Security number or business employer identification number. Forms 1095-A, B, and C, health coverage statements, and copies of income transcripts from IRS and state, if applicable,” according to the IRS.
If you don’t have a Social Security number, an individual taxpayer identification number (ITIN) assignment letter may be substituted for you, your spouse, and your dependents. If you don’t have an ITIN you can apply for one in-person using the services of an IRS-authorized Certifying Acceptance Agent (CAA). Here’s a list of VITA sites that can help you apply for an ITIN.
Both spouses must be present to sign the required forms when filing taxes electronically on a married-filing-jointly tax return.
How to Find a VITA or TCE Location
VITA and TCE sites are often in community and neighborhood centers, libraries, schools, shopping malls, and other convenient locations, according to the IRS. To find a location near you visit the IRS’ VITA/TCE Locator Tool online or call 800-906-9887. Many “TCE sites are operated by the AARP Foundation’s Tax Aide program. To locate the nearest AARP TCE Tax-Aide site between January and April, use the AARP Site Locator Tool or call 888-227-7669,” according to the IRS.
H&R Block & TurboTax
Neither H&R Block or TurboTax are partnering with the IRS’ Free File program but they both offer free online guided tax-preparation products for simple tax returns.
H&R Block’s free service will help taxpayers who have a W2 with their simple returns. H&R says it can also help those who are claiming unemployment income and its software will also guide users through the child tax credit claims process.
TurboTax’s free service will help taxpayers with a W2 to complete their simple tax returns, which it defines as a 1040 only. This service helps those claiming the standard deduction and can also help taxpayers report limited interest and dividend income (Forms 1099-INT or 1099-DIV). The software will also walk users through the earned income tax credit (EIC), child tax credit, and student loan interest deduction process, according to its website.
Both companies charge a menu of fees for more complex tax filings and other features.
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