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How to File Your Taxes for Free

This article was written by in Taxes. 10 comments.


The federal government can only operate with the help of the millions of individuals who earn income in this country and dutifully pay taxes. You would think that, in order to ensure a smooth revenue stream of considerable size, the IRS would make filing taxes as easy and painless as possible. That’s obviously not the case, considering the tax code is one of the most confusing human inventions on the planet today. The IRS does ensure that filing federal tax returns is completely free for millions of Americans with the help of a select number of software companies, provided the taxpayer meets a few eligibility requirements. If you can file your federal taxes for free, do so. There’s no point in spending unnecessary money.

If your taxes are complicated, and you require a professional to review or complete your forms, or you require some features not available in the free editions, then go ahead and pay for software or pay a professional. For the cast majority of Americans, free e-filing is a great option.

Starting with the most popular software companies, here are the best options for filing your taxes for free. I’ve updated this list for 2011 returns filed in early 2012. The deadline is April 17, 2012.

TurboTax Choose EasyTurboTax Online. TurboTax tops the list because they are fast to adjust to tax law changes, it’s part of a large company that has a strong reputation for personal finance, and there is a large user community for peer-to-peer support. The TurboTax Freedom edition is free for e-filing if any of these criteria apply to you:

  • Your adjusted gross income (AGI) is $31,000 or less, or
  • You are active military with an AGI of $57,000 or less, or
  • You qualify for the Earned Income Tax Credit (EITC)

I’ve used TurboTax in the past, and here is a TurboTax Online review as of the latest version of the software. For 2011 returns filed in 2012, TurboTax has lowered the maximum AGI for filing for free, reducing the availability of the program. If you live north of the border, you’ll need to access TurboTax Canada.

Save 25% on H&R Block At Home Online ProductsH&R Block. H&R Block’s primary business is in seasonal storefronts where taxpayers can bring their financial documentation into a specialist to work through the forms in person. The company also offers the “At Home” filing service for those who like the do-it-yourself approach. While the company normally charges for federal tax filing, if you use the At Home service and meet the following condition, you can e-file your federal taxes for free.

  • Your adjusted gross income (AGI) is $57,000 or less, and
  • You are age 52 or younger

Here is my review of H&R Block’s software, updated recently to reflect the changes since last year. H&R Block has also lowered the maximum AGI, but to a lesser degree than TurboTax has, and because the IRS has stipulated that $57,000 be the maximum AGI, though companies are free to set a lower maximum. In other words, this is the highest maximum allowed by the IRS.

Free TaxAct. When TurboTax was no longer free for me, and before moving to an accountant to handle my business, I was still able to e-file for free using TaxAct. TaxAct doesn’t have the brand strength or the large community of the two above software services, but the calculations are correct and the system that guides you through your calculations is just as complete. You can e-file your federal taxes for free using Free TaxAct if the following conditions apply.

  • Your adjusted gross income (AGI) is $57,000 or less, and
  • You are between the ages of 19 and 55 inclusive

eSmart Tax powered by CompleteTax. To e-file for free, your AGI must be less than $57,000 and you must be age 52 or younger.

TaxSlayer. TaxSlayer offers free e-filing for taxpayers with an AGI of $57,000. You must be age 25 or younger, be active in the military, or be eligible for the Earned Income Tax Credit in order to qualify for free federal e-filing.

Other free e-filing options are limited by the state in which you live in addition to other limitations similar to those above.

The deadline is approaching fast, and maybe taxpayers wait until the last possible minute to file. I suggest starting as early as possible, once you have all the information you need, to ensure you don’t encounter any delays or glitches. I have never heard of there being any software problems at the last minute, but it’s better to be safe than owe penalties to the government.

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Giveaway: 5 Extreme Finance Packages (TurboTax, Quicken, and QuickBooks)

This article was written by in Giveaways. 71 comments.

The giveaway has ended. Thanks to everyone who has participated. The winners will be notified shortly.

Thanks to the team at Intuit, Consumerism Commentary has “extreme finance” packages to give to our readers. This is a complete package that covers personal finance management, tax filing, and even business accounting. Five of these packages are available. Although the company balked at my initial idea of giving away free tax filing for life, I’m happy to say we were able to come up with something just as extraordinary.

This has the possibility of being a popular giveaway, so I am offering Consumerism Commentary readers a number of ways to qualify. But first, here is what is included in the “extreme finance” package, worth up to more than $300 each.

If you win, you will be able to select your choice of tax software, personal finance management software, and business accounting software.

The winner will choose one of the following options for filing taxes:

The winner will choose one of the following options for managing personal finances:

The winner will choose one of the following options for handling business accounting:

I’d like to point out that in addition to the above software, Intuit provides these free options. For filing your taxes, you may qualify for the TurboTax Online Federal Free Edition and for managing your personal finances, you may be satisfied with Mint.

In order to win this giveaway, readers can accumulate points. Each point represents one chance to win one of five of these “extreme finance” packages. The maximum number of points is 20. In other words, if you follow each of the suggestions, you will be 20 times more likely to win than someone who just leaves a comment below. Here is what you can to in order to increase your points:

  • Leave a comment below (one point)
  • Include in your comment a Quicken or TurboTax tip (two points)
  • Subscribe to the Consumerism Commentary RSS feed (two points)
  • Follow @flexo on Twitter and let me know that you have in a comment below (one point)
  • Retweet the giveaway on Twitter: “Pls RT! Awesome TurboTax/Quicken giveaway from @flexo! http://bit.ly/aH8vnR” and let me know that you have in a comment below (two points)
  • Become a fan of Consumerism Commentary on Facebook and let me know that you have in a comment below (two points)
  • If you have a blog or other website, link to this article (three points)
  • If another reader mentions in their comment that you referred them to the contest, you will receive up to seven matched points as the referrer

Of course, if you already subscribe to the RSS feed, if you already follow @flexo on Twitter, or if you are already a fan on Facebook, let us know in the comments. You do not need to re-do these actions in order to receive points.

When you comment, don’t forget to let us know what additional actions you have taken to ensure you’re awarded all your points. Also, if someone referred you to the contest, let us know who referred you so the referrer can receive their matched points.

This giveaway will remain open until Friday, March 12, 11:59 PM Eastern Time. Your comment must be posted and all actions must be complete by that time in order to be awarded your points. You will need a mailing address in the United States and must be at least 18 years old to qualify.

Now for some fine print. Intuit is providing this software directly to Consumerism Commentary readers. The software is being provided independently of the recent review of TurboTax Online and any other software reviews posted on Consumerism Commentary. Consumerism Commentary is an authorized affiliate of Intuit.

The giveaway has ended. Thanks to everyone who has participated. The winners will be notified shortly.

Check out the Intuit product blogs for QuickBooks, TurboTax, and Mint.

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