How to File Your Tax Return for Free
Even though roughly 70% of Americans filing are eligible for a free tax return through the IRS, they still spend $ 1 billion a year on unnecessary fees. With that in mind, here are your best free tax return options.
Start with a Free IRS File
The good news is that most people are already eligible for free tax filing through the IRS Free File program – the only requirement is that your adjusted gross income must not exceed $ 72,000.
This program is a partnership between the IRS and an alliance of tax preparation companies such as TaxAct and H&R Block and offers free versions of companies tax software. Using the IRS Free Files Finder , you can enter your income, state of residence, age, military status, and tax credit eligibility, and it will match you with suggestions that match your tax reporting needs. Once your federal and state taxes are complete, you can also submit them electronically for free.
However, if you make over $ 72,000, the IRS offers nothing but free fillables that you can use to compile your own taxes. The best option in this case may be commercial tax software.
Commercial Tax Software
If you have a so-called “simple declaration”, many tax preparation companies, such as TurboTax or H&R Block, will allow you to apply for free with no additional fees (although they will try to gird themselves accordingly ).
A simple return means that you take the standard deduction , get only W-2 or unemployment income, and have limited or no investment. Some tax products go further and allow student loan deductions and loans to be included at no additional cost. If your finances are more complicated than this, expect to pay money.
CNBC Select’s choice as the best tax software to file simple tax returns for free is Credit Karma Tax, although they also rated TurboTax , H&R Block, and TaxSlayer as good options. These programs can be a little confusing, however, so you might want to check out YouTube’s step-by-step instructions so you don’t miss out on deductions or credits (for example,this Credit Karma Tax review has a good step-by-step guide).
Helping volunteers with income tax
Another option is the Volunteer Income Tax Assistance (VITA) program, which offers IRS-certified volunteers who can help you file your tax return for free if you earn $ 57,000 or less or are disabled.
These volunteers usually work in face-to-face offices across the country, although unfortunately there are fewer of them this year due to the pandemic (although some may offer video calling or sideways services). You can find the closest one to you here .