File Tax Return for Free
The tax season is approaching, and most working people in the United States will file a tax return to report their income during 2021. Whether it’s your first time filing a federal income tax return or you’ve been doing this for decades, there is a high chance that you qualify for free filing. Read more to see how you can file taxes for free.
First and foremost, free filing a tax return isn’t anything new. The Internal Revenue Service has been offering this for many years by partnering up with tax preparation service companies. Pretty much all the known tax preparation service companies that made a name for themselves are included in the IRS free file program.
Each tax preparation service company has its own requirements from taxpayers. If you don’t qualify for one of them, there is a high chance that you will be eligible for another. The most significant determination point in free filing taxes is your income. For the 2021 taxes, which you’ll file a tax return for in 2022, your income must be less than $72,000. Pass that; you need to look at the eligibility requirements of each tax preparation service.
Main eligibility requirements
The main reason why taxpayers end up paying for e-filing taxes is that they itemize their deductions. All tax preparation services listed on the IRS free file page require taxpayers to take the standard deduction. If you’re itemizing deductions, you can’t e-file for free.
There are also other requirements for tax credits. Most tax preparation services will allow you to claim the child tax credit and earned income tax credit. Other than these two tax credits, you won’t be able to claim anything else.
It’s good to watch out for these to get the most out of the free file. File your federal and state income tax through the tax preparation service that allows you to do the most. Every taxpayer is different, and so is what goes to their tax return. Knowing what you’ll enter on your return and planning ahead will go a long way in taking advantage of these offers.
Go to the IRS Free File page to see the full list of tax preparation services.