Free File – Filing your tax return online for free
Do you have an AGI of $58,000 or less? If so, you may be able to use Free File tax software to prepare and file your electronic tax return.
But, what is Free File? And how does it work? Keep reading to find out.
What is Free File?
The IRS defines Free File as ‘a free, federal income tax prep and electronic filing program for eligible taxpayers’.
Free File has been developed through a partnership between the IRS and the Free File Alliance who are a group of private tax software companies. You can submit your federal income tax return using the commercial software provided by these Free File Alliance companies but you must go to the IRS website to access the software.
Who is eligible for Free File?
The Free File program is open to you if you are a taxpayer with an Adjusted Gross Income of $58,000 or less.
Each of the participating software companies sets its own eligibility requirements and not all taxpayers will qualify for all companies. Individual company offers may be limited by location or AGI so it’s important to review the criteria before you choose. The IRS also offers a “Help Me Select a Company” tool to help you find a Free File tax software program that meets your needs.
What does the $58,000 AGI limit apply to?
The AGI limit of $58,000 applies to individuals and to you if your filing status is ‘married filing jointly’. The $58,000 applies to the total income of you both combined.
What is an electronic signature?
When you file a tax return online you have to electronically ‘sign’ your federal income tax return. You do this with either the previous year’s AGI or with an electronic Personal Identification Number (PIN). The PIN is a five digit number that you choose yourself and it is easy to obtain.
Do I have to download software?
No. All of the tax software will remain on the Free File company website and your return is filed from there. All Free File company sites have the latest security encryption programs to protect your privacy.
What are ‘free file fillable forms’? I have seen something about them but I don’t know what they are.
Dickson – thanks for your question.
Free File Fillable Forms are online versions of IRS paper forms designed for people comfortable preparing their own tax returns. This option does not offer state tax returns and performs only basic calculations. Everyone is eligible to use them.