Finding the Best Free Tax Preparation Services
Posted on 
Taxes are frequently associated with negative emotions such as stress, inconvenience, and time consumption. Although it can be expensive to file taxes, there are actually many ways to do this for free. Let’s look at some of the best free tax filing services to see how much you could save this tax season.
IRS Free File
The IRS Free File Program provides two online tools for taxpayers to prepare and file their income taxes: Free File Fillable Forms and Guided Tax Preparation. They partner with several tax software providers to make these tools available.
You can use the free online service Guided Tax Preparation through IRS partner sites. This service allows taxpayers with an Adjusted Gross Income (AGI) of $73,000 or less to file a federal tax return for free. On the other hand, Free File Fillable Forms are electronically filled out 1040 tax forms that taxpayers with an AGI over $73,000 can access and complete themselves.
Taxpayers will need their income statements (W2s or 1099s), any income adjustments, AGI from last year or self-select PIN, and relevant dependent and spouse information for either program.
Choosing the Best Option
While many free filing services are IRS compliant, not all may be right for you. Some states offer free filing services but certain services may not include a free state return.
Navigating the terms and conditions of each tax firm can be difficult which is why the IRS has a Free File Online Lookup Tool available. Users can input basic information about their income and personal characteristics to find the best filing service or alternatively manually sort through offered services using the Lookup Tool.
Independent Tax Software Providers
In addition to those included in IRS Free File like H&R Block and Tax Slayer offer additional direct options for filing taxes. Typically these systems provide free online filing for simple tax returns that include basic deductions and income from one job.
However, be aware of potential costs especially for state tax returns and look out for unaffiliated filing services that assist with popular tax credit claims.
Choosing the Best Independent Option
Most free programs, despite their limitations, accept W2 incomes and common credits such as the Earned Income Tax Credit or Child Tax Credit. These services will do your state taxes if your tax situation is simple and you don’t plan on itemizing deductions:
- H&R Block
- TurboTax
- Cash App Taxes
However, if you have investments, student loan interest or charitable donations you may need to upgrade to a paid service.
Volunteer Income Tax Assistance (VITA)
The Volunteer Income Tax Assistance (VITA) program provides federal funding to community groups that help people with low to moderate incomes or who face physical, cognitive or linguistic challenges in filing taxes.
While there are VITA locations all over the country, the program’s focus is on quick filing of basic tax forms. Those with complex deductions or losses (e.g., contractors, freelancers, investors) may require different solutions.
MilTax
In partnership with H&R Block, MilTax provides free tax software to military service members and their families. The company also offers services online as well as in person through VITA.
Links to software, financial tools, and contact information are provided for military families by MilTax. Telephone or online assistance is available from trained tax advisors too.
Tax Counseling For The Elderly (TCE)
Like VITA, Tax Counselling For the elderly (TCE) offers free tax preparation services for seniors but puts more emphasis on retirement and pension-related issues; it is not limited by a minimum age requirement though its primary target group is people aged 60 years and older.
While the IRS maintains a list of TCE sites most are operated under control through AARP Foundation’s Tax-Aide program which can be found via the AARP Site Locator Tool.
Safety Procedures
These services and programs must protect taxpayer data from unauthorized access by law. In addition to following IRS e-file requirements they adhere Federal Trade Commission Privacy & Safeguard Rules.
“Free” Isn’t Always Best
Even though there are plenty opportunities to file taxes at no charge especially if your finances are simple such options may not be appropriate for all individuals. Higher refunds could be obtained by paying for services that allow you claim tax credits or itemize deductions in some cases. Long-term savings can result from investments into tax software or professional advice despite potential short-term costs.
Associate Editor • Technology News and Cybersecurity Specialist
Olivia provides detailed latest tech news, reviews of latest gadget trends, and compelling cybersecurity tips and tricks on the internet in todays world.
