Free and Low-Cost Tax Filing
For many, tax season is something that they dread annually. Questions about how to get it done, if there is a good free tax software, and where to go often keep many from filing on time. Questions of how much one can get back (or owe)); when the filing will be accepted; when the return will arrive, and the cost can be a stressful burden. Evolve:Lyfe is here to help simplify some of the issues surrounding preparing taxes, and recommend the best free tax software we have used.
In general, if you don’t have complicated taxes, you can file them yourself! There are many services available to provide this to you. And yes, there are free options available at any income level! We are going to cover what we think is the best free tax software, but there are many different ones out there. Use the ones that meet your needs and your budget to get the best fit for your filing. Don’t forget to save a copy of your returns for at least 10 years in a safe place, so that if you do happen to have an inconsistency with your returns and get audited, it is easy to provide copies of anything that the IRS will need (which will save them time and help you get it over with faster).
Free Tax Filing Resources
First up, you are always able to file your federal taxes for free with the official IRS website. You can click here to get to their website. If you have an income over $72,000 you will have to fill out all forms yourself, and there’s no option to file your state taxes here—it may be better for you to file using a different option mentioned below. For those making $72,000 and under, you are eligible to file free with an IRS partner site and in some cases can also file your state returns at the same time. For those who meet the income threshold, the online services will guide you through your preparations and do all the math for you.
To complete your filing you will need
- your W-2 forms
- any investment income forms
- Additional records of income/expenses for side gigs or business
- Proof of health insurance coverage—provided by your insurance or the ACA marketplace (CoveredCA)
San Bernardino County has free options for filing federal and state taxes via their Transitional Assistance Department (TAD). The TAD website has online filing options for self-preparers making $72,000 or less annually in both English and Spanish, which can be found here. The Community Action Partnership (CAP) program in Riverside County also has a Volunteer Income Tax Assistance (VITA) option with information available in both English and Spanish for assisted tax preparation, and an option for free online filing found here. Other Inland Empire counties likely also have tax preparation assistance, or online free filing, available on their websites.
Our admins and staff also have some paid suggestions you can try. These paid options are TurboTax.com and 1040.com, both of which the folks here at Evolve:Lyfe have used successfully and can confidently put forth as ways to e-file.
TurboTax
TurboTax is an easy-to-use tax prep system offering multiple levels of assistance ranging from their free simple 1040-EZ filing (federal and state, simple tax returns only), to assistance with a live tax professional. The program walks you through the steps using clear language and simple questions to determine your needs. The software then guides you to the correct forms. If you have any questions, detailed explanations are available in each section on what information is required and where to find it on your tax forms.
TurboTax is a great way to file quickly and is user-friendly…even for confusing items like itemizing or stocks. Throughout the process, TurboTax keeps a real-time count of what you’re getting back or will owe. If you’re receiving a refund and using one of their paid services (for more advanced taxes), TurboTax can take the fees out of your refund then send the balance to the account of your choice.
1040.com
1040.com is another easy-to-use online tax prep service. You can preview the service for free and check out your completed tax return—you only pay when you actually file! This is a paid service ($25 flat fee) no matter what your taxes look like, and all features are included. Like TurboTax, each section is guided with clear questions and has extra, detailed explanations if you need more information. There is email and chat support available when using the software as well. Like TurboTax, 1040.com includes items like investments and rental income for the most accurate filing.
With 1040.com, all state returns are included when you pay the $25 for your federal return. Some of our favorite features with 1040.com are: accessing past returns filed with the service at any time with PDF downloads when you create an account with the site; being able to purchase audit protection for your return; the site’s ability to pause a return mid-completion, then pick it up hours or days later if you’re still waiting on a form in the mail; having the option to choose an automatic deposit into your bank, or a paper check with your refund delivered. (Hint, the ACH automatic deposit is free and faster to get your return!)
Don’t miss the deadline
As you can see, you have options for free and low-cost income tax filing that you can use to get everything done before that looming April deadline. You don’t necessarily have to pay through the nose this tax season to get your tax preparation done, especially if you have access to all your forms and a computer. Remember if you’re using a public/shared computer, make sure you are using incognito/secret mode on the web browser. Also, log out of all websites and clear the history before you shut your session down. This will help make sure you aren’t don’t leave sensitive personal information like your social security number or address where anyone could have access to it. Happy filing!
Contributors: L. Smith & C. Kindle