Check Out Free File for Federal Taxes

Posted February 14th, 2008 by NFAN
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Just as we move past the winter holidays, tax season is creeping around the corner. It may be too late to change how much we owe or how much we’ll get back, but many taxpayers can save money by preparing and filing 2007 taxes through Free File.

What is Free File?

Free file is an IRS program that enables some taxpayers to file their federal taxes online for free. If you earned $54,000 or less in 2007 and have access to a computer and the internet, you may be able to take advantage of Free File.

The Benefits of Free File:

  1. Free File walks you step-by-step through a streamlined filing process. As a result, it reduces preparation time and eases the complexity of filing.
  2. You will receive your refund faster when you use Free File compared to sending your IRS tax return by mail.
  3. The process encourages accurately and timely filed returns and ensures the IRS receives your completed return. With Free File, you’ll know your return was not lost in the mail.
  4. It’s a secure, IRS recommended choice for filing your federal taxes and it reduces the risk of falling for one of the tax scams that are prevalent this time of year.

How it works:

The IRS partnered with a group of tax-software companies, “the Free File Alliance,” to help taxpayers prepare and file their taxes for free.

When you access Free File on the IRS website, (www.IRS.gov) you can choose a specific company or ask for guidance. After answering a few short questions about your age, income and state residence, it will give you the list of free services for which you qualify. Some companies may charge fees for filing state taxes or have additional age or income requirements, so be sure to closely review your options.

Other Info:

The program started in 2003 and this year 97 million taxpayers are eligible, according to the IRS. Last year, almost 60 percent of all taxpayers filed electronically and 3.8 million used Free File through the IRS website.

Taxpayers who do not qualify for Free File can still take advantage of the security and convenience of filing online by visiting www.IRS.gov/efile.