You hate doing your taxes and so do I. The only thing that is worse is having to pay for an accountant or tax preparation software. Well, now you do not. You may not realize it, but you may be one of the 70 percent of Americans that qualify for the IRS free file program.
In 2003, the IRS apparently got tired of hearing people complain about preparing their taxes. To stem at least some of the criticism, the agency put together a program with various computer software companies that allow you to prepare and file your taxes for free. The companies range from H&R Block to Tax Pros. The key is you have to go to the IRS site and enter the program from there. To do so, just search for free file on the excellent site. If you don’t access the program this way, you will end up paying.
So, who is eligible to use the free file program? A surprisingly large number of people. To use the program, you have to meet the following criteria.
1. You must have an adjusted gross income of less than $52,000. Remember, that is adjusted, as in the figure you come up with after claiming most deductions.
That is it. Shocking, eh? There is, however, a secondary question you need to take into account. Should you use the free file program to prepare your taxes?
There is nothing inherently wrong with the free file tax program. In fact, the IRS should be applauded for putting it together considering there was no requirement for it to do so. The only potential downside is you might overpay on taxes if you have a complicated tax situation. The tax code is huge and software programs more or less stick to the basics. If you have a complicated financial situation such as a real estate investor or sole proprietor, you are probably better off using a CPA.
At the end of the day, the IRS free file program will work for most Americans. Now all you have to do is get all that information together!
Richard A. Chapo is with BusinessTaxRecovery.com - providing information on tax debt relief.