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When tax filing season comes around, it’s normal for a lot of us to feel the stress that comes with trying to navigate through all the different credits, deductions, and forms out there. And as tempting as it can be to hire a tax preparer to help you out, that’s extra money that a lot of people just don’t have.
The good news is that there are different ways to file your taxes for free and programs that guide you through the process. This guide will walk you through some accessible options, including resources for free federal and state income tax filing, and how to maximize your benefits like the Earned Income Tax Credit (EITC).
Understanding Your Tax Obligations
Before diving into free filing options, it’s important to understand your obligations. If you earn income in the U.S., you’re generally required to file a federal tax return and potentially a state tax return, depending on where you live. Key documents you’ll need include your W-2s, 1099s, student loan interest statements, and other tax documents that summarize your income and deductions for the year.
4 Ways to File your Taxes for Free
1. IRS Free File Program
The IRS Free File program is a partnership between the IRS and private tax preparation companies, offering free tax filing services to eligible individuals. This program gives you two main options:
- Free Guided Tax Preparation: Available to individuals or families with an adjusted gross income (AGI) of $84,000 or less in 2024, this service offers step-by-step help to file your federal tax return. Your adjusted gross income is the total amount of income you bring in minus deductions that can include things like taxes, health insurance premiums, and more.
- Free Fillable Forms: For those with incomes of $84,000 or less, the IRS provides electronic versions of paper tax forms. While this option won’t give you step-by-step guidance, it’s free to use.
2. Direct File
Direct File is a new initiative launched by the IRS that allows taxpayers in certain states to file their federal taxes directly with the agency without the need for third-party software or services. This program is designed to simplify the tax filing process and eliminate fees associated with some other platforms. Direct File is especially useful for people with straightforward tax situations, giving them a streamlined and secure way to file federal returns.
To use Direct File, visit the IRS website and follow the instructions given. The service guides you through the filing process and makes sure you’re compliant with federal tax laws.
3. Volunteer Income Tax Assistance (VITA) Program
If you need help filing your taxes, you could also consider the Volunteer Income Tax Assistance (VITA) program. This program provides free tax preparation for people who:
- Earn $67,000 or less annually.
- Have disabilities.
- Speak limited English.
Certified volunteers help taxpayers prepare and file their federal and state income taxes. VITA sites are located all over the country, often in libraries, schools, and community centers. To find a location near you, visit the IRS’s VITA locator tool.
Springfour
If you’re looking for some more financial guidance, you can use a free online tool like Springfour. It may be able to connect you with resources in your community to help guide you through managing your finances.
If you’re looking for some more financial guidance, you can use a free online tool like Springfour. It may be able to connect you with resources in your community to help guide you through managing your finances.
4. Using Cash App Taxes
Cash App Taxes is a free tax preparation service that allows you to file both federal and state income taxes at no cost. The platform supports most tax situations, including self-employment, contract work, and more. The service guides you through the process, ensuring that you claim all eligible credits and deductions. It’s user-friendly, making it a useful option for those new to tax filing.
Earned Income Tax Credit (EITC) and Other Benefits
The Earned Income Tax Credit (EITC) is a refundable tax credit aimed at low-to-moderate-income individuals and families. To claim the EITC, you need to file a federal tax return. The credit amount varies based on your income, filing status, and number of qualifying children.
On top of the EITC, families with qualifying children may be eligible for the child tax credit, which can give you a tax credit of up to $2,000 for each dependent child that qualifies. Make sure to report all qualifying dependents on your tax return to claim this credit.
5 Tips for Filing Your Return for Free
- Organize Your Documents: Gather all necessary tax documents, including W-2s, 1099s, and interest statements for student loans before starting the filing process.
- Check Eligibility: Make sure you meet the requirements for free filing options like IRS Free File or Cash App Taxes.
- Use Free Resources: Take advantage of free tax preparation services and programs like VITA or Tax Counseling for the Elderly (TCE) which is tailored to people aged 60 and older and focuses on pensions and retirement-related issues.
- Claim All Credits: Don’t miss out on valuable credits like the EITC and the child tax credit.
- File Early: Filing early reduces stress and makes sure you get your refund as quickly as possible, if applicable.
Common Mistakes to Avoid
- Not Filing a Federal Tax Return: Even if your income is below the filing threshold, you need to file to claim refundable credits like the EITC or the child tax credit.
- Missing Deadlines: Avoid penalties by filing your taxes on time. The federal tax deadline is April 15.
- Overlooking Free State Filing Options: Some states offer free tax filing options that can save you money.
Disclaimer: The information contained herein is provided for free and is to be used for educational and informational purposes only. We are not a credit repair organization as defined under federal or state law and we do not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit. Articles provided in connection with this blog are general in nature, provided for informational purposes only, and are not a substitute for individualized professional advice. We make no representation that we will improve or attempt to improve your credit record, history, or rating through the use of the resources provided through FreshStart Blog or CreditFresh website.
