U.S. topic -- options for FREE tax filing expanded by IRS

[Jingthing]

I've been paying for this to taxact.com (if you have stock sales, dividends, they force it) but this seems worth checking out for tax year 2019. It involves partnerships with private companies but it isn't available yet but will be for this tax season.

Quote

Tax season starts soon. The IRS just made it easier to file for free.

 

https://www.washingtonpost.com/business/personal-finance/tax-season-starts-soon-the-irs-just-made-it-easier-to-file-for-free/2020/01/07/f348a3ee-3164-11ea-91fd-82d4e04a3fac_story.html

[Langsuan Man]

Just realize that there are limits to this free file that has recently been "massaged" by the IRS, the program has been around for years but the commercial tax preparation companies had hidden the "free file " option from their customers, so the IRS threatened them with launching their own IRS online tax programs,   so they caved and are now highlighting the free file option:

 

Quote

This year, taxpayers with adjusted gross incomes of $69,000 or less can use free commercial software by going to IRS.gov/freefile. 

If you exceed the $69K limit there is now another IRS option:

 

Quote

If your income exceeds $69,000, you can still use the Free File Fillable Forms, which are the electronic versions of IRS paper forms that are designed for people who are already comfortable filling out forms. When using the fill-in forms, you can perform basic calculations, sign and submit your return electronically. Just note, the fillable forms do not come with the brand-name software assistance available through Free File.

 

[AAArdvark]

Isn't Taxact something like $30?  If so, is it worth messing around with something else?  You can also try creditkarma.com. 

[Langsuan Man]

20 hours ago, AAArdvark said:

Isn't Taxact something like $30?  If so, is it worth messing around with something else?  You can also try creditkarma.com. 

Be very careful if you use CreditKarma Tax.  They offer no help or assistance and if you should happen to get logged out their password recovery system will not work.  Tried to access last years taxes, and repeated emails (8) to support resulted in them finally telling me that they could not restore my access and I should request a transcript from the IRS

 

Anyway,  most brokerage houses will provide a comprehensive 1099 or year end statement where the math is already done and all you have to do is plug in the figures but if you want to pay to file, up to you

 

 

[gk10002000]

That similar income limit was always subtly buried inside the "Free" income filing system the IRS would point one to.  My returns were never that complicated so I just used the IRS PDF fillable forms, and checked my own calculations.  Takes two hours every year.  And my only brokerage is with Etrade and the 1099 is simple and easy to transfer any numbers.  Tax act or even turbo tax while act like spreadsheets, still sometimes require you to understand and properly answer some questions.  For basic things, there I never saw the need for it.  And then if some complicated or judgement calls, well, the tax software really doesn't help as it asks you anyway.  For 35 nears I have mailed in my returns and I get the money direct deposited in less than a month from soup to nuts.  Those printable PDF forms really eliminate any sloppy hand writing.  I am content with a few weeks from mailed in form, to monies direct deposited.

 

 Now if one is over seas, I can see more value in doing things online electronically to avoid mailing some things.  But how do those online tax things handle attachments or W-2 forms that are mailed or downloaded from one's employee?  How about W-2Gs from my slot jackpots?  I have to attach those to my 1040.  Feds don't require the W-2Gs if no withholding was taken out, as they have the records of that, however California does require physical copies of W-2Gs, even if no federal withholding was taken out.

[Langsuan Man]

There are basically no free filing programs for state income taxes, even the paid one's require an extra fee for US state income tax returns.  Although there are some states that provide their own "free" file, Pennsylvania comes to mind as one and I think so does California

 

I just found another free file option here:

https://www.freetaxusa.com/?siteID=EHFxW6yx8Uo-kp8Qq.BQ2de.5q8LPRdDZw