Doing Your Taxes For Free

If you’re thinking, “I want to do my taxes for free“, then you’re in the right place. There are numerous options to file your taxes without any cost if your income is below a certain threshold and your tax matter isn’t particularly complicated. Here’s a breakdown of various options to consider.

One of the most known platforms to do your taxes for free is the Internal Revenue Service’s Free File program. If your Adjusted Gross Income (AGI) is $72,000 or less, you can leverage the IRS’s tools to prepare and e-file your tax return online at no cost. For those earning above this figure, the IRS provides fillable, electronic versions of its paper forms.

Using Tax Software

Another alternative is to use free tax software offered by some of the leading companies in the field: TurboTax, H&R Block, and TaxAct. Each vendor has a free version, although what’s covered in each differs. These platforms offer intuitive interfaces and the option to upgrade for professional assistance if you wish.

For example, TurboTax’s free edition handles simple tax situations, such as W-2 income, earned income tax credits, and unemployment income. H&R Block and TaxAct have similar offerings, also including student loan interest and education credits. Ensure you compare each platform to find the one that best suits your needs.

Volunteer Income Tax Assistance

If your income is $57,000 or less, or you’re over 60, disabled, or you speak limited English, you can qualify for Volunteer Income Tax Assistance (VITA). This IRS-sponsored program provides free tax help from IRS-certified volunteers. These volunteers take you through your tax return, answering questions and helping you file.

Tax Counseling for The Elderly

This program provides free tax help to those aged 60 or over. Despite the name, there’s no rule prohibiting volunteers from assisting younger people. In fact, many Tax Counseling for the Elderly (TCE) sites are operated by AARP’s Tax-Aide program, which has no age or income restrictions.

The Necessity of Keeping in mind Entity Classification Election

While managing your taxes, an important issue arises around the ‘entity classification election due date‘. This applies if you’re running a business, and it refers to the date by which certain types of business entities must decide how they’ll be classified for tax purposes.

An entity may want to change its classification to take advantage of different tax treatment. For instance, a Limited Liability Company might elect to be treated as a corporation for tax benefits. The IRS allows this, but there are specific time periods that it must be done. If the election isn’t made by the due date, the entity will continue to be treated as it currently is for tax purposes.

It’s crucial for businesses to make a note of the ‘entity classification election due date’ as missing it could mean missing out on potential tax benefits. This is part of managing your tax obligations responsibly and effectively.

Final Thoughts

In conclusion, doing your taxes for free is feasible if you meet certain income criteria and your tax situation isn’t complicated. Utilize online resources like the IRS Free File, free tax software, or assistance programs such as VITA and TCE. Finally, if you’re a business owner, be mindful of the ‘entity classification election due date’ to avoid missing out on potential tax benefits.