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While about 70 percent of taxpayers are eligible to file their returns for free online, fewer than 3 percent of them take advantage of the IRS Free File program.

IRS Free File, which began in 2003, is a partnership between the IRS and a group of private tax preparation companies that allows taxpayers to prepare and file their taxes for free online.

A lot of people get scared when you start talking IRS, said Jim Argo, an AARP tax-aide volunteer of 13 years, who helped people file taxes Thursday at Peru Public Library. Probably a lot of them would be eligible for Free File, but a lot of them are intimidated by the internet.

Judy Bence, 68, of La Salle is a match for that description.

No, I dont file alone or online. That scares me, said Bence, who filed her taxes with the assistance of AARP tax-aide volunteer Linda Reff. Im not a tax-filing person. Ive never done it on my own.

Bence has toyed with the idea before and done research, but she came away overwhelmed.

I looked at it one time, and I was like, Ahh!. Bence said throwing her hands up.

She has been getting help from AARP with her taxes for the past five years.

Filing online alone can be daunting for members of younger tech-savvy generations too even those who have used Free File before.

Ryan Wetsel, 25, of La Salle who was also getting free tax help said things are just easier with the assistance of someone who knows what theyre doing.

I have filed online before, he said. It was through one of the free websites. The last two times I tried to do it myself it kept getting returned. I just decided this was easier. I tried it, then it never worked again.

According to tax-filing statistics, most people agree with Bence and Wetsel.

Fifty-eight percent of responses to a poll on http://www.newstrib.com said they dont file their taxes alone, and things are even more lopsided across the county.

Nationally, 112 million people filed income taxes in 2014, the most recent year on record on the IRS website, and few used Free File.

Around 3 million taxpayers a year use Free File, about the same number of taxpayers who use free volunteer tax prep assistance through our 12,000 locations operated by community organizations, said Anthony Burke with the IRS.

That number is also kept low by cannibalization from Free File Alliance members.

When Free File began in 2003, it was the only free software program available, Burke said. Today, many of the brand-name software providers, who also are members of Free File, offer free software outside of the Free File umbrella.

Free file qualifications

If youre wondering if you qualify for Free File ahead of Tax Day, April 18, this is what you need to know.

Taxpayers who make $64,000 or less 70 percent of taxpayers are eligible to use Free File brand-name software products, Burke said. Taxpayers who make more than $64,000 can use Free File Fillable Forms, the electronic version of IRS paper forms.

Taxpayers can access the forms at irs.gov/uac/free-file-do-your-federal-taxes-for-free.

This year, the Free File pages are optimized for various devices, which means taxpayers can now use their mobile phones and tablets, as well as their computers, to prepare and e-file their taxes, Burke said.

Eligibility guidelines are different for each of the 12 Free File partner companies. Their criteria is generally based on income, age and state residency.

Several offer both free federal and free state return software, Burke said. Active duty military personnel who make $64,000 or less can use any of the 12 software products they want.

Free local help through the AARP

While the AARP is most often associated with seniors, Argo said tax-aide volunteers with the organization help people in any age bracket.

He said volunteers are at Peru Public Library from 9 a.m.-3:30 p.m. Mondays and Thursdays, Mendota Area Senior Center 8 a.m.-3 p.m. Mondays and Thursdays and Bridges Community Center in Ottawa 8 a.m.-3 p.m. Thursdays.

More AARP tax-aide site locations can be found online at https://secure.aarp.org/applications/VMISLocator/searchTaxAideLocations.action.

Ben Hohenstatt can be reached at (815) 220-6932 or perureporter@newstrib.com. Follow him on Twitter @NT_Peru.

Read more from the original source:
Free file fear keeps tax preppers busy - LaSalle News Tribune