Many Can E-File for Free
The big news in electronic tax filing this year is that many taxpayers now can e-file both federal and state returns for free.
The Internal Revenue Service recently hooked up with a coalition of 17 private companies that have agreed to provide free electronic filing to at least 60% of the nation’s individual taxpayers. To find out whether you qualify for a free filing program, go to www.irs.go and click on “Your Link to Free Online Filing.”
Taxpayers must access free filing by clicking through the IRS site. Those who go directly to the Web site of a partner firm rather than through the IRS may be charged for the service.
Some taxpayers have complained that the free e-filing service is slow and difficult to navigate. But e-filing still offers advantages over old-fashioned paper filing.
Electronically filed returns are checked for errors, reducing the chance that the IRS will kick back your return with questions or problems. Also, the agency promises to deliver refunds within two weeks, compared with the four to six weeks that it generally takes for a paper return. Refunds are delivered even faster to those who agree to have them automatically deposited to a bank account.
California also has a free filing service, currently available to those earning less than $50,000 individually -- $100,000 if married, filing jointly -- and taking the standard deduction. The program will be expanded in late March to handle higher-income filers and those with itemized deductions, according to the Franchise Tax Board. To access the free service, go to www.ftb.ca.gov.
