Free Online Tax Preparation
Is Free Online Tax Preparation a Scam?
The 2017 tax season is fast approaching, and many taxpayers are beginning to search for free online tax preparation sources. Doing a search on the internet brings up results in the millions, and most aren’t really free.
Many individuals are turning to this method of filing their taxes for obvious reasons. The top one is that it is so much cheaper than taking your records to a CPA.
Some stop by their office supply store and buy a copy of one of the well-known brands, but many more choose the online tax filing option. Whether you buy a software program or decide to use the online tax filing method, they all offer some version of a free option.
The free option generally applies to the federal return only, and has income and several other limitations. Our online tax filing site at 1040.com, has a free online tax preparation option if your gross income is below $100,000.00. There are a few other conditions that apply, and these are IRS mandated.
The IRS participates in a program known as the Free Filing Alliance & the gross income limit there is generally below $62,000.00. They do provide free online tax preparation for your federal return, but charge various fees to prepare your state return.
Another option that you have is to go to a professional tax preparer to have your returns taken care of. However, don’t look for a free online tax preparation offer for your federal return.
Most professional firms now use some form of tax preparation software and e-file their returns. At our firm, we use one of the top tax preparation software packages, and e-filed 100% of our returns.
If you’ve decided to accept the free online tax preparation for your federal return, you’ll most likely be paying a fee to file your state return. These fees vary at the various tax filing vendors and some even charge to e-file the returns.
Read the fine print before choosing an online tax vendor. Many charge high fees for extras. Click To TweetAt 1040.com, we have a low fee to file the state return. Plus, if you have to file with more than one state because you had earned income there, there is no additional charge for the extra state(s).
Just be sure that your returns are e-filed and not mailed in. E-filing is faster, safer, and if you have a refund due, you can get it in about ten days using direct deposit.
After the return is e-filed, you will also receive an acknowledgement from the IRS and state that they received your returns and have begun processing.
When you e-file your returns, they are quickly checked for errors on math, social security numbers, dependents and a number of other items.
Before you make your final selection, we encourage you to give our online tax filing site a try. You can try the site free with no obligation. Plus if your income is below $100,000.00, you may qualify for free online tax preparation.