Free Tax Filing Software for US Taxpayers

January 19, 2012 Taxation in USA

U.S. Tax FormsWASHINGTON D.C. – The IRS has launched its e-File programs for 2012, offering free tax preparation software to families with incomes below USD 57 000.

With the US tax filing season now well under way, on January 17th the Internal Revenue Service (IRS) relaunched its e-File system, allowing taxpayers to submit their tax returns online using free tax preparation software and tools.

The e-File consist of the Free File, which provides taxpayers with free tax preparation software, and Free File Fillable Forms which allow taxpayers to submit their returns using the IRD’s automated electronic tools.

Free File is available to taxpayers with adjusted gross incomes of USD 57 000, offering taxpayers a free version of one of 20 different commercial tax preparation software packages. The applications will require users to answer a number of questions regarding their incomes and expenses in order to determine their exact tax obligations, and will also suggest any currently active tax breaks which the taxpayer is eligible for.

Taxpayers whose incomes exceed the USD 57 000 threshold will be eligible to use the Free File Fillable Forms, which complete some calculations for the taxpayer, but do not offer any suggestions for possible tax breaks.

All the tools and the preparation software will automatically submit a tax return directly to the IRS, which will be processed within 48 hours.

In the 2011 US tax filing season nearly 77 percent of all individuals’ tax returns were filed electronically via the IRS e-File. Since the program was first instated a decade ago it has processed over 1 billion individual tax returns.

In a further push by the IRS to encourage electronic filing, new rules have also been implemented this filing season which mandate that any tax preparer who completes more than 10 individuals’ tax returns must submit the tax returns electronically.

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