If you earn about $60,000 or less and you have not filed your income-tax return for 2014, check out the free software program offered on the IRS website called Free File, which is available in English and Spanish versions. Filing electronically "vastly reduces errors," according to the IRS, since calculations are done automatically.
In order to use Free File, you'll need a copy of your 2013 tax return, an email address and your W-2s, 1099s and any receipts required for claiming medical or other deductions.
Fourteen tax-software vendors make their software available to you at no charge for federal filings through the Free File Alliance, which is a nonprofit that partners with the IRS. The companies are: ezTaxReturn.com; 1040now.net; TaxACT; FreeTaxUSA; eSmart Tax; TurboTax; OnLine Taxes at OLT.com; FileYourTaxes.com; H&R Block; 1040.com; TaxSlayer; TaxSimple; Free1040TaxReturn.com; and Jackson Hewitt.
Each company has slightly different qualification requirements. For example, Free1040TaxReturn.com will provide free software to people with $60,000 or less in income who are age 70 or younger. H&R Block has an age limit of 53 or younger, while ezTaxReturn.com limits availability to residents of certain states.
TurboTax offers free tax-filing software to military members who make $60,000 or less, but not to the general public, whose income limit is $31,000.
Instead of trying to figure out which program is best for you by reading about the differences, take advantage of the online tool at http://apps.irs.gov/app/freeFile/jsp/wizard.jsp.
The tool takes you through a series of questions:
1) Age (some of the vendors limit their free tax-filing software to certain ages). For example, TaxSimple has a 50 or younger age requirement. For TaxACT, you must be between 18 and 58. For FreeTaxUSA, you must be between 17 and 75. There are no age restrictions for TurboTax, 1040.com, OnLine Taxes at OLT.com or ezTaxReturn.com.
2) Your estimated 2014 "adjusted gross income," which is your gross income minus some adjustments. That means that if your W-2 is slightly higher than $60,000, you may still qualify if your adjustments bring you down to $60,000 or below. Here is an example of an adjustment: You paid alimony or contributed to an IRA. Look at lines 23 through 35 of Form 1040 for more. Adjusted gross income is line 37.
3) Your residence (state you live in). Some software programs are limited to residents of certain states.
Continued here:
IRS recommends electronic filing to reduce errors