Every tax season millions of taxpayers will spend money to file their return when they may not have to. The National Taxpayer Advocate has estimated around 70% of taxpayers are eligible to use IRS Free File. Only about 2% do.
Read on for options tax filers can consider to cut the cost of doing your taxes.
FREE FILE OPTIONS ONLINE
The IRS offers Free File for people with annual incomes of $79,000 or less. Filers go to this site where they can pick a third-party software program to prepare and file their federal income tax returns for free.
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The programs guide you through your return by asking you questions to figure out what credits and deductions apply and then calculate what you owe or your refund.
“It does the math for you,” said IRS spokesperson Clay Sanford. “In the past and even with people who still do paper returns, that is still the number one issue with returns: math errors. So, the computer is going to do the math for you.”
If you don’t have a computer or laptop at home, you can use your phone to download the IRS2Go app. When you open the app, look at the menu at the bottom and click on the “free tax help” option to find Free File.
If you don’t meet any of the income requirements, you can still use the IRS’ free fillable forms. It does some basic calculations but doesn’t give step-by-step instructions like tax-guided software.
“This is more suitable for people who are into DIYing their taxes and know how to fill them out,” said Elizabeth Ayoola, NerdWallet Personal Finance Writer. “You're not going to get much guidance with that, but it's a free, fillable form that you can find on the IRS website. You can basically even file your taxes for free using that.”
IN-PERSON TAX PREP HELP
Some tax filers may be eligible for free in-person tax preparation with an IRS-certified volunteer.
The Volunteer Income Tax Assistance or VITA program is for people who make $64,000 or less, people with disabilities or taxpayers who speak limited English.
To find a VITA site, type your zip code into this IRS search and look up sites near you or call 800-906-9887 for a list of options. Check out each one and call before you go. Many sites require an appointment.
The Tax Counseling for the Elderly or TCE program offers free tax help to people 60 and older. If you’re filing a joint return, as long as one spouse meets the 60 or older threshold, you’re eligible. When looking for a TCE site, the IRS says most are operated by the AARP Foundation's Tax Aide program. To locate the nearest site between now and April, use this AARP Site Locator Tool or call 888-227-7669.
As you check out sites, you may see the words "Self-Prep" in the listing. This is where filers can prepare their own basic federal tax return for free with web-based tax software and guided help from an IRS-certified volunteer.
For members of the military and some veterans, you can check out MilTax for free tax return help with no income limit.
The IRS operates three Taxpayer Assistance Centers in North Texas. This is where tax filers can schedule an appointment to ask a question they haven’t been able to answer online or by phone. The sites don’t prepare or file taxes. You can search for a TAC here https://apps.irs.gov/app/office-locator/
