File Your Federal Taxes for Free!

Yes, absolutely free - no catch! All the information is available right there on the IRS website.

http://irs.gov/efile/article/0,,id=118986,00.html?portlet=6

The companies the IRS website refer you to offer free filing based on your Adjusted Gross Income (AGI). Free File is available only to taxpayers with a maximum AGI of $56,000. Some companies might have a lower income limit, but if the AGI is not specified by the company, the maximum is $56,000.¹

The Free File information page on the IRS website¹ is pretty self-explanatory. If you wish to have a company prepare your taxes for you, select one of the first two buttons "I Will Choose a Company" or "Help Me Find A Company". I recommend the second "Help Me Find A Company" ² as it will filter results based on your location, age, estimated AGI and filing status (i.e. single or joint). It helps narrow down your choices.

Note that when you pick a company, you will be redirected to that company's website - away from the IRS site. These companies work separately from the IRS. The Free File is a program and you should note that companies are notrequired to support all the forms and schedules to participate in Free File so you should check the company's website to determine which forms are available.²

Now the one thing I didn't realize until this year, is that you can prepare and e-file your taxes all by yourself without Tax Software! I was always under the impression that in order to e-file your own taxes you had to buy a Tax Software like TurboTax³. Which, after visiting their site, I saw that they do offer a free version as well) ³.

If you already prepare your own taxes, or feel confident in giving it a whirl this year, you can prepare and e-file your taxes right online. Start by clicking the third button on the Free File Homepage "Choose Tax Forms"¹ . Then click "Choose Tax Forms" on the next page. Note that it will take you to a site outside of the IRS website, but it is totally legit. I used it myself for my federal taxes this year and have checked the status on the IRS website.⁴ What is great about this method besides the fact that it is completely free, is that it is very simple, you just fill-in your information and it will calculate the math for you. It also has most of the federal forms available, including access to the instructions for the forms. You can also stop and save what you have already done in case you have to look for other information or wait for documents.

In order to do the online e-file you will need your last year's AGI. It must be the exact amount from your tax forms filed last year or the IRS will reject your e-file. You will also need to create a 5 digit personal PIN. ⁵ You can also choose NOT to e-file, but rather use the online forms to prepare your taxes and then print them for mailing.

I highly recommend trying the Free File using the Free File Fillable Forms⁵ for anyone who normally prepares their own taxes or if you do not itemize deductions. If you usually have someone else prepare your taxes, then try using one of the Free File companies listed on the IRS site.2 Either way, it is free and with today's struggling economy, who can turn down that?

IRS Website - Free File Homepage

http://www.irs.gov/efile/article/0,,id=118986,00.html

IRS Website - "Help Me Find A Company"

http://irs.gov/app/freeFile/jsp/wizard.jsp

TurboTax Website

http://turbotax.intuit.com/?priorityCode=4483300000&cid=ppc_yh_nb_pi_ac_nn_hometlp

IRS Website - "Where's My Refund"

http://irs.gov/individuals/article/0,,id=96596,00.html?portlet=4

Free File Fillable Forms

https://www.freefilefillableforms.com/FFA/Gateway.htm