Can you file your taxes for free?
Until just a few years ago, I was employed by a nonprofit vocational training school. Many of our students were single moms living on very limited resources.
Every year, as soon as possible, many of the students raced to have their taxes prepared.
Most of them were expecting significant refunds.
In addition to paying to have their taxes prepared, many students chose to get an advance on their expected refund, usually at an additional cost.
When one student told me that her basic return cost approximately three hundred dollars to have prepared, I was almost physically sick. This was a student who needed every single dollar for diapers and gas.
The reason that she was able to afford the high cost of tax preparation was because the fee was withheld from her expected refund.
Tax preparation is very overwhelming, so I understand anyone’s reluctance to prepare their own taxes.
However, even if you choose to pay someone, at least know your options for filing taxes for free.
IRS Free File
On this page you will find the option to use guided software or fillable forms.
Unless you’re familiar with tax preparation, choose one of the guided software options.
In addition to the IRS Free File options, many tax prep companies offer their own free option.
Turbo Tax is the software I have used for years, but a quick search turns up many others.
Basic tax returns are not difficult to prepare with the right tax software.
Tax software prepares your taxes by walking you through basic questions.
Whether you prepare your own taxes, or pay someone else, chances are, you are going to have to be able to answer the same set of questions.
Since you don’t pay until you file, at least with Turbo Tax, you can quit at any time and proceed to a paid tax prepared.
Don’t be afraid you will miss something you can “write off on your taxes”.
When you hear that phrase, most people are referring to filers who itemize.
When I purchased my first home, that is exactly what sent me to a professional.
I was told that the mortgage interest would be a tax deduction.
Big surprise! It is only a deduction if all the expenses you are able to itemize add up to more than the standard deduction. I paid to find that out!
Even if you itemize, the tax software will ask you enough guided questions that it is difficult to miss anything.
Either way, don’t file too early
Forms are required to be in the mail by January 31st. Forms will continue to arrive in the mail and online well into February.
Don’t take an advance on your anticipated refund.
The cost is enormous. And if, for any reason, the refund doesn’t materialize, it is no longer an advance.
It’s a loan and you owe it back.
The IRS can and will seize a refund for various reasons.
Among other things, the IRS has the right to seize a tax refund for a defaulted student loan. Then, no refund. How will you pay back what you thought you would receive?
Another (true) example: An x-partner, with whom you share a child, files first and claims the child as a dependent. It is going to take time and the proper paperwork to show that the legal right to claim belongs to you.
The IRS states that it takes only an average of twenty-one days to get a refund. Choose direct- deposit and the refund will likely come sooner.
Waiting just a little longer for a refund and avoiding any nasty surprises (and costs) is well worth it.
Do you pay someone to prepare your taxes?
That may be what’s best for your situation.
However, know that options exist to file for free.
And one of the options just might be right for you!
Note: I am not a tax, financial or any kind of legal professional. I am a mom, aunt and friend trying to give individuals information in order to make informed decisions. Only you can decide if you need to seek a professional to help you prepare your taxes.
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My husband has used an online website to do our taxes for years and it was free until a certain age. Taxslayer.com Even when we had to start paying it really wasn’t very much.
Good to know. Thanks!