Where To File Taxes Online For Free

There are multiple resources you can utilize to file your federal income tax return for free. The IRS itself has estimated that nearly 70% of the 145 million income tax returns filed in 2010 were able to be filed at no cost to the tax payer.

Free Filing with the IRS

Starting out, taxpayers can use the IRS’s very own freefile tax system found on the IRS website. Freefile will allow you to complete your federal return information for free using software created to make filing easy. Filers can also use the IRS’s freefile fillable forms for completing their taxes.

The potential drawbacks to using the free IRS system is that the software is not integrated with state tax filing systems so you will only be able to file a federal return and must file with your state using other methods.

Also using the Free File Alliance system through the IRS are fifteen companies that offer free federal tax filings for all individuals earning less than $57,000 annually. There are different rules and restrictions per company and you must first be sure you live in a state that is eligible under the free filing criteria. Keep in mind that companies like H & R Block and those offering free federal filings will still charge you to prepare your state tax return.

Other Free Tax Filing Providers

In addition to the companies offering free tax return filings, there are other providers who offer free filings including tax preparation software companies like TurboTax. Here is an overview of some of the other free filing providers that offer free federal income tax filing:

TurboTax – A tax preparation software company which offers users many forms, installment agreements, and other services offered by the IRS. TurboTax can help you prepare your federal and state tax returns but will not be able to assist you with estimated tax information for the next year. TurboTax also does not include business schedules or rental schedules but users can perform multi-state tax returns for an additional fee in some states. The latest version of TurboTax’s software allows users to import existing information so data entry is often not necessary. Tax experts are available via telephone at no additional cost.

H&R Block – You can utilize the tax preparation resources online through the H& R Block website which allows users access to most common tax forms. You are not able to import information for your W-2’s or prior tax years when using the free services. You also cannot access estimated tax information for the coming year. You will be able to prepare a 1040 income tax return and itemize deductions, capital gains, and business expenses. Online help is available for free as is telephone support. The company will also represent you during a tax audit if you file using their system.

CompleteTax – This is a basic tax preparation service where users can file 1040EZ forms for free under all filing statues. Estimated tax amounts can be generated and printed. W-2 and 1099-INT information can be imported into the program. If your tax information becomes too complex for the basic system, you can upgrade at a locked in rate. Email support is available for those that need tax help.