February 2008
How to prepare and e-file free
If your tax return shows an adjusted gross income at or below $54,000, you're eligible to use the Free File system, which
lets you prepare and file your federal return online at no cost. (For information, go to www.irs.gov and click on Free File.)
Most of the 19 authorized Free File tax-prep providers have eligibility criteria above and beyond income, such as age or state of residence. Before you settle on one, make sure it has the tax forms you need and that it can prepare and send your state returns if that's your preference. And watch for additional fees for services such as printing the return.
A few online tax-prep services—TaxACT, TurboTax, Express1040, and Taxnet—offer free, no-frills online prep and e-filing of federal returns regardless of income, but charge for preparing and filing state tax returns. You can side step that if you live in one of 23 states (or the District of Columbia) that have their own online programs. For a list of states and links to state tax boards, go to the Federation of Tax Administrators' Web site. Preparing your state form free through these programs might mean that you'll have to re-enter personal information rather than importing it using your federal tax-prep software.
If you live in California and are single, earn income from just one employer, and don't itemize deductions, the state will prepare your return for you free. The other 19 states with a state income tax all offer online tax-prep options through private companies. One service, TaxSlayer, offers free completion and filing of state and federal forms to taxpayers who are on active military duty, regardless of income.
Most of the 19 authorized Free File tax-prep providers have eligibility criteria above and beyond income, such as age or state of residence. Before you settle on one, make sure it has the tax forms you need and that it can prepare and send your state returns if that's your preference. And watch for additional fees for services such as printing the return.
A few online tax-prep services—TaxACT, TurboTax, Express1040, and Taxnet—offer free, no-frills online prep and e-filing of federal returns regardless of income, but charge for preparing and filing state tax returns. You can side step that if you live in one of 23 states (or the District of Columbia) that have their own online programs. For a list of states and links to state tax boards, go to the Federation of Tax Administrators' Web site. Preparing your state form free through these programs might mean that you'll have to re-enter personal information rather than importing it using your federal tax-prep software.
If you live in California and are single, earn income from just one employer, and don't itemize deductions, the state will prepare your return for you free. The other 19 states with a state income tax all offer online tax-prep options through private companies. One service, TaxSlayer, offers free completion and filing of state and federal forms to taxpayers who are on active military duty, regardless of income.
