What is IRS Free File?
The IRS Free File is a civic collaborative undertaking of a public-private alliance between IRS (Internal Revenue Service) and several leading tax filing and preparation software. The providers assist the eligible taxpayers to prepare and virtually file their federal tax returns free of cost. The inception of these electronic tax forms has minimised the chances of errors while filing income tax and empowers taxpayers to get acquainted with the tax layout.
According to research, about 70% of Americans who are filing taxes in the U.S, are qualified for a free process through the IRS free file. Free or low-cost filing becomes essential for people with low-income levels and immigrants. Newcomers can opt for service from the Accounting & Tax Company, a pioneer in tax filing, accounting and payroll assistance.
Procedure To Use IRS Free File
IRS Free File software allows eligible taxpayers to prepare and file their federal income tax returns free of cost with a lot of conveniences. One can also get many privileges like payment benefits and recovery rebate credit. Let’s know the procedure of how to use it efficiently.
Based On Income
The IRS Free File facilitates two ways for eligible taxpayers to prepare and file their required federal income tax without any costs:
Income under $72000 per annum: the conventional IRS Free File offers free online preparation and filing choices on their partner sites. The online IRS partners assist in tax preparation and provide services free of cost to competent taxpayers. Importantly, only people with the adjusted gross income (AGI) of $72000 or less entitled to any IRS Free File partner offers.
Income above $72,000 per annum: In this section, qualified taxpayers can fill out and file the Free File Fillable forms that are structured electronic federal tax for free. If someone chooses this option, they should know how to prepare their own tax return. This option is available only for the taxpayers whose AGI is more than $72,000.
Free File Partners
The IRS Free File offers a list of its alliance software providers on the website. The IRS reviews each member for privacy and security standards according to the Federal Trade Commission (FTC). Further, the IRS offers a free online tool to assist taxpayers and find a suitable match for them.
Essential Documents You Need To Get Started
After selecting a suitable match according to your eligibility and requirements, you have to create an account. Later, the software provider will guide you step by step through the completion of your tax returns. It will ask a set of questions to narrow down tax offering the best filing options. Some basic documents are needed while filling out tax returns forms through the IRS Free File channel:
- Basic Personal Information
- Income and Receipts Supporting Your AGI
- Details of other income
- Affordable Care Act (ACA) Filers
- Valid Contact Information
It offers you a promising way out for those who have relatively basic tax situations. Its software is desirable for anyone searching for perfect tax filing platforms. For immigrants and expat, Free File is a perfect option, as these people are more susceptible to misinformation and deceptions. There are several province-based institutions one can take help from, like International Tax Consultant in Florida, International Tax Consultant in New Orleans and so on for any other state of the USA.
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