Top Free Tax Filing Services

People often use various derogatory terms to describe the ordeal of filing taxes. It’s seen as stressful, time-consuming, and inconvenient, not to mention costly. However, there are free tax filing services available to alleviate some of the burden of tax season. Yet, it’s worth noting that not all of them are truly “free.” Let’s explore the options that won’t cost you a dime so you can save money during tax time.

IRS Free File

The IRS Free File Program operates in collaboration with several tax software companies, providing taxpayers with two online options to prepare and file their income taxes: Guided Tax Preparation and Free File Fillable Forms. Let’s delve into these choices.

Guided Tax Preparation is a complimentary online service offered at IRS partner websites. If your Adjusted Gross Income (AGI) is $73,000 or less, you’re eligible for a free federal tax return using this service. Conversely, Free File Fillable Forms are electronic versions of the 1040 tax forms that you can complete independently. You qualify for this option if your AGI exceeds $73,000.

To utilize either of these services, you’ll need your income statements (W2s or 1099s) and any income adjustments. Additionally, you’ll require the AGI from your previous year or a self-select PIN, along with relevant dependent and spouse information.

Which Option Is Best?

While numerous free filing services are associated with the IRS, not all of them are equally equipped to handle your specific tax scenario. Some services may not provide free state returns, although certain states offer their own no-cost filing services.

Navigating through the details of each tax company can be daunting, which is why the IRS advocates for the Free File Online Lookup Tool. By answering basic questions about yourself and your income, this tool can assist you in identifying the optimal filing service. Alternatively, you can use the Lookup Tool to manually explore all available services.

Unaffiliated Tax Software Companies

Certainly, besides the options available through the IRS Free File program, there are other tax filing services offered directly by providers like H&R Block and Tax Slayer. These typically provide free online filing for straightforward tax returns.

In general, “simple” refers to taxpayers with income from a single job who are claiming the standard deduction. However, watch out for independent filing services that assist with claiming common tax credits. Additionally, be mindful that these companies may levy fees, particularly on state tax returns.

Which Unaffiliated Option Is Best?

While these free services come with constraints, many are equipped to handle W-2 incomes and commonly claimed credits such as the Child Tax Credit and the Earned Income Tax Credit. If your tax situation is fairly straightforward and you don’t plan to itemize deductions, you can use these services for free, including state taxes:

• H&R Block
• TurboTax
• Cash App Taxes

However, if you’ve made charitable donations, paid student loan interest, or have investments, you might need to upgrade to a paid service.

Volunteer Income Tax Assistance

The Volunteer Income Tax Assistance (VITA) program, funded by the federal government, supports community groups in offering tax filing services to individuals with low to moderate incomes. It also aids those facing physical, cognitive, or language barriers.

VITA sites are accessible nationwide, with the IRS providing a helpful list of locations. However, the program primarily focuses on assisting with straightforward tax returns. Individuals with complex financial situations involving significant deductions or losses, such as investors, freelancers, and contractors, may find other filing methods more suitable.

MilTax

MilTax, in collaboration with H&R Block, extends free tax software to military personnel and their families. Administered by the Department of Defense, this program also offers in-person assistance through its association with VITA.

For military families, MilTax offers financial resources, contact information, and access to software links. Additionally, trained tax consultants are available to provide guidance for online or phone filing.

Tax Counseling For The Elderly

Established akin to VITA, Tax Counseling For the Elderly (TCE) offers complimentary tax preparation services for seniors. These sites usually operate alongside VITA locations, but TCE volunteers receive specialized training in retirement and pension matters.

While the program caters to individuals aged 60 and above, there is no minimum age restriction. Although the IRS maintains a roster of TCE sites, most are managed by the AARP Foundation’s Tax-Aide program. Utilize the AARP Site Locator Tool to discover the nearest location.

Are These Services Secure?

All the programs and services mentioned are mandated to safeguard your information against unauthorized access. IRS Free File, its partnered providers, and associated programs are prohibited from disclosing or utilizing tax return information without your explicit consent.

Additionally, all the listed companies must adhere to the Federal Trade Commission Privacy and Safeguard Rules, along with IRS e-file regulations. Therefore, regardless of your chosen service provider, these standards guarantee the security of your information.

“Free” Isn’t Always Best

As evident, there are numerous avenues for free tax filing, especially if your financial circumstances are uncomplicated. It’s heartening to witness federal grants actively supporting our most financially vulnerable taxpayers. However, these programs might not align with your needs.

While the prospect of a “free” tax filing option is enticing, it may not always serve your best interests from a tax standpoint. Investing in a service that enables you to itemize deductions and claim tax credits could potentially yield a higher return. Although paying for tax software or engaging a tax accountant may entail upfront costs, it could lead to long-term savings.