How to do your Taxes for Free

Starting today, January 16th, the Federal government will open its Free File system for preparing and submitting your 2014 federal tax return. You can choose from 14, well known branded tax prep programs in which to enter your tax data. Once you select one of these 14 tax preparation programs, from the Free File site, you are automatically directed to the tax software site to prepare and file your federal tax return. A specific annual income threshold is required: Your annual income has to be $60000.00 or less.

Link to Free Tax Prep Help

As of 2014 the federal government states over 43 million people have utilized their free online service and 70% of tax filers actually fit the necessary parameters. Still a little wary about doing your own tax return? The IRS also offers Free File at selected Volunteer Income Tax Assistance locations and Elderly Tax Assistance programs at locations listed at http://irs.gov/VITA.

You can also search for a provider by zip code.

So if you are going to file a standard 1040 federal return with no itemized deductions then this free secure system can be a great money and time saver. You will still have to do your state filing in the usual manor. Some states do not require state filings:

Alaska

Washington State

Nevada

South Dakota

Wyoming

Texas

Florida

Links to Free File State Filings

Another point to consider is whether your own state has a free online system for state filings. Each of the below states have a free online system like the Federal government and each has its own income thresholds. The following states and Washington DC, have free file systems

The official IRS YouTube Video about Free File:

Click on infographic to view official PDF from the IRS: