Tax Preparation for Free Using Free File

As the new year begins so does that thought of tax time. For many it can be a sigh of relief. People turn to online tax preparations such as Turbo Tax, looking forward to the hopeful amount they may receive as a refund. The great thing about Turbo Tax is it can be completely free if you fall within certain income brackets. Turbo Tax isn't the only tax preparations site to offer free services, there are many out there. Some are easy to use, much like Turbo Tax, while others may seem more difficult.

As of January 16, 2009, the IRS has opened their e-file service, which allows customers using sites like Turbo Tax to submit their returns electronically and receive refunds much faster than through the traditional mail service. Free File, which is a term used in conjunction with e-file allows consumers to utilize tax preparation service websites, like Turbo Tax, H&R Block, and Tax Slayer with the possibility (determining your eligibility) of filing your taxes completely free!

According to the Internal Revenue Service, IRS "Free File offers 20 different software options that can assist taxpayers with an Adjusted Gross Income (AGI) of $56,000 or less in 2008 to e-file their federal tax returns for free. That means 70 percent of all taxpayers - 98 million taxpayers - can take advantage of tax software that will help them complete their returns through the Free File program. "

Last year the average tax return was $2,429, according to the IRS. Given today's economic pressures it would seem wise to avoid tax preparation fees by local tax preparation agents. Whether a tax refund is more or less than the average, it is still money in your pocket that you may not have had. Using free file and e-file services for your taxes this year can get your tax refund to you faster - just in time for those bills!

Most of the sites give consumers very user friendly formats. Self tax preparation can be as simple as some basic data entry. It is the software enabled over sites like Turbo Tax, H&R Block and Tax Act among others that do all the basic calculations and pretty much prompt individuals towards qualifying credits and so on.

Preparing your taxes yourself can be scary, especially if your situation is complex. Look in your local paper of ask neighborhood agencies if they are offering FREE tax preparation if your scared. Most states and counties in the US offer free tax preparation and or help if your income falls with in certain brackets. So, if this is the first time your doing your taxes yourself, find back up in case you get stuck!

Sources:

Internal Revenue Service - www.irs.gov