By now most all Americans should have received their W2 tax forms from their employers and thus begins the rush for tax refunds and tax filing. Along with the paperwork come a number of questions for consumers including the best way to file their taxes to hopefully maximize their tax refund.
In the sea of tax services, many offering free tax filing services and advice, often overlooked is the IRS itself as a resource. In addition to tax calculators, IRS tax forms, a toll free phone number for tax questions, the IRS.gov web site also offers a new free online tax filing service called “Free File.”
In previous articles we have talked about the benefits of using the IRS Free File service and how it is the perfect way to file income taxes and maximize a tax refund from a source that you can trust. Here are the basics about the Free File tax filing service and who it is for.
According to the IRS, their new “Free File” service is an option for an estimated 70% of tax payers in the United States. This is because the only restriction for using the “Free File” service to file your tax return for free and get your tax refund fast is that your adjustable gross income (AGI) is $57,000 or less.
Look for the FreeFile link on the IRS.gov web site to walk through the steps to start your tax return. As you AGI may vary based on some questions asked, you may still qualify for the free tax filing program even though your gross income on your W2 tax form is higher than $57,000.
If you don’t qualify to use the IRS’s FreeFile program, there are still options for you to use a free online tax filing service to get you on your way to a speedy tax refund.
As we have mentioned in previous articles, the top two online tax services are typically TurboTax and H&R Block. Both companies offer those with straight forward tax filing situations the ability to file their federal income taxes, using the IRS form 1040EZ, for free.
In addition to the convenience of filing you taxes for free, the online services also get your tax return to the IRS faster and generally result in a tax refund sooner. If you opt to have the IRS direct deposit your tax refund, most American tax filers can expect to receive their tax refund in a matter of just a few weeks.
If you are not sure if you would qualify for the free tax filing offered by TurboTax, H&R Block and other, it usually boils down to the question of which IRS tax form you will use.
The online tax services will walk you through the process by asking you some questions and will help you decide. But generally, if you work a job where you are paid a salary or hourly wage and receive a W2 form from your employer you should be able to take advantage of the free online tax filing and refund offers.