Filing your tax returns can be one of the most tedious tasks you have to undertake during the year. But there is one IRS perk that can make the process more worthwhile: Free tax filing software and services! The IRS has partnered with major tax authorities to help you save hundreds of dollars and regain your sanity during tax time.
Most tax savings come with limitations. So make sure you meet the requirements before you begin. Heads up: You can’t exceed annual income requirements. Fortunately, the amounts of income for people filing a 2020 tax return have increased. If you weren’t eligible last tax season, this may be your lucky year to get access to the free tax return.
Don’t miss the Free File software
It doesn’t matter if your income is high or low – there are always ways to save money during tax time. The IRS has many benefits year round that can lift your spirits – including the IRS Free File. The program gives you free access to tax preparation software and electronic filing if you made $ 72,000 or less in 2020.
To get started, you can access the IRS website and access one of the partner sites where you can prepare and file your federal income tax online for the current year for free. Your information is protected from unauthorized access and you have free customer service options available to answer your questions.
If you have read thousands of pages of Tax Code, don’t worry to avoid the most common filing mistakes. The free file tax software will walk you through the process, asking you to fill in information from tax forms such as W-2 and 1099 and do any necessary calculations for you. You are also less prone to costly mistakes and improve your refund potential by keeping you informed of all credits and deductions to which you are entitled. The last thing you want to do is sacrifice your ability to get popular benefits like the earned income tax credit just because you didn’t include important information on your tax return.
Free access to trained tax volunteers
If you’re scared of filing your own tax return, you can work with a tax professional to prepare and file your federal income tax online. Again the IRS has a free solution: work with a trained tax volunteer. The IRS’s VITA (Volunteer Income Tax Assistance) program provides free tax assistance to those who earned $ 57,000 or less in 2020. You are also eligible if you are a disabled person or have limited knowledge of English. Due to COVID-19, some websites are temporarily closed. Therefore, use the VITA Locator Tool to find an open website near you.
The IRS also offers the Elderly Tax Advisory Program (TCE) for people aged 60 and over. TCE professionals are trained in tax law and have the skills required to specialize in frequently asked questions that only apply to seniors. For example, if you have no idea how to deal with your pension proceeds or distributions and withdrawals from pension plans – especially since 2020 with all kinds of new rules and considerations under the CARES Act – you can work with a professional TCE professional who in general can break everything down in the simplest possible way.
The earlier you start the better!
The clock seems to be ticking faster and faster when taxes are due. You can avoid the last minute rush by starting early, gathering your records, and determining if you qualify for one of the free filing options offered by the IRS.
Knowing what resources you have at your disposal can make the tax preparation process a solemn moment to look forward to every year – especially if you’re expecting a tax refund and meeting income requirements to avoid the cost of filing a tax return.