Question: What is Free File?
Introduced in 2003, Free File is a program created by the Internal Revenue Service in partnership a number of retail tax software companies to provide free online income tax preparation software. TurboTax, H&R Block At Home and other online tax software providers offer a free income tax software through the Free File program for tax year 2011.
Updated 02/04/2012
If you don't qualify for or want to use Free File, there are many other free tax software options.
Answer: This year's Free File program has two options: choose free online tax software from a Free File Alliance partner, or use Free File Fillable Forms. Both include free federal eFile.
Free File Tax Software
The free tax software is provided by many familiar companies, like Intuit TurboTax and H&R Block, and some providers offer state income tax software as well (but it may not be free). The income limit for qualifying for the free software is set by each provider, so you will find a quick survey at the Free File web site to determine what tax software you can use at no cost. There is free tax software available for income limits up to $57,000 from Free File, and at this time, there are 16 different free tax software providers to choose from.If your income is higher, you can find free basic tax software online from CompleteTax, TurboTax, H&R Block At Home, as well as others.
Fillable Forms
Free File Fillable Forms is available to anyone, regardless of income level. Fillable Forms presents IRS tax forms on your computer display screen, where forms are completed online. This option does not walk you through preparing income taxes like tax software does, but it does basic math calculations and allows you to e-file your return. Free File Fillable Forms does not support state forms or state electronic filing.
More on Eligibility Requirements
The eligibility requirements for using the Free File program vary from year-to-year, and you may not qualify every year. To use Free File to prepare your 2010 tax year income tax return, you must meet this criteria:- As noted above, the IRS requires that you have an Adjusted Gross Income (AGI) of $57,000 or less to use Traditional Free File, with no income requirement to use fill-in form e-file.
- Free tax software providers in the Free File program can set some of their own requirements for allowing you to use their free online tax software. For example, some free tax software providers may require that your AGI be $32,000, over-ruling the IRS requirement of $57,000. If the free tax software provider mentions no AGI, assume the IRS rules apply.
- Some free tax software providers have an age range you must fall into, or are only available to certain states or to military personnel.
- Once you choose a free tax software title through the IRS Free File website, be sure you only access the tax software website through the IRS site to avoid being charged for your tax return. Once you click on the free tax software website, you will see a notice that you are leaving the IRS site, and you can proceed from there.
- Not all free tax software providers offer free state returns or free state e-filing, so be aware of fees if you wish to use the free tax software to prepare your state taxes.
- Some providers offer an extension at no cost if you do not complete your tax return on time.
- If you see ads in the software used through Free File, you are under no obligation to buy anything. The IRS stipulates that free tax software providers in the Free File program not include ads that nag you to upgrade to a paid version.
