As the deadline for companies to mail out W2 tax forms by the end of January approaches, millions of Americans, especially those filing taxes for the first time, are looking for ways to file taxes online for free. The IRS freefile, a free online tax filing service, may be the perfect solution.
According to the IRS.gov web site, approximately 70% of American taxpayers have an adjusted gross income (AGI) of $57,000 or less. For these taxpayers, the IRS freefile program provides a way to file their income taxes online for free, and if they have overpaid, receive a speedy tax refund.
For those who may not qualify for the IRS.gov freefile program, there are still a number of free online tax filing services which are not based on your income or AGI. Online tax filing services like Turbotax base their fees for filing on the type of tax return. For the millions of Americans who file using a simple 1040EZ for 1040 tax form, it is free to file your Federal income taxes using their service. The program uses a step-by-step approach to tax filing asking questions in plain English, making tax filing, and hopefully getting a tax refund, very easy.
For taxpayers with more complex tax situations, or who also have a side business, Turbotax and other online tax programs also have tax filing options which are inexpensive yet very thorough.
What are the benefits of filing taxes online? Filing income taxes online, known as e-file, can help speed the delivery of any tax refund due. According to the IRS, taxpayers choosing an e-file option can check on the status of their tax refund typically within 72 hours of submitting their e-file online tax return.