Free tax-filing services available to millions of Americans
Americans are spending over $14 billion on tax preparation services this year, according to IBISWorld. Millions of taxpayers may be eligible for free filing services.
The IRS Free File program allows qualified taxpayers to prepare and electronically file their federal tax returns through commercial tax preparation software.
"This is a private-public partnership set up through the IRS with some of these tax software companies that we all probably are familiar with, but that we can actually access for free if you're a qualified taxpayer," Stefanie O'Connell Rodriguez, host of Real Simple's "Money Confidential" podcast, told CBS News. "So if your adjusted gross income is below $73,000, you may qualify to use one of these services."
"Go to IRS.gov and answer some basic questions about your income from last year, your household, and they'll let you know which partner services you might qualify for to use to file and prepare your federal return and potentially even your state return for free," O'Connell Rodriguez said.
While Free File provides qualified Americans with free software to prepare their returns on their own, other taxpayers may need more personalized assistance. The Volunteer Income Tax Assistance program, or VITA, provides free services to taxpayers who earn $60,000 or less a year, people with disabilities and people with limited English-speaking abilities.
"That's where you're going to be able to work with volunteers who are accredited through the IRS to help you prepare your tax return," O'Connell Rodriguez said.
VITA sites can be located across the country and are primarily located in community and neighborhood centers.
"They are located all over the country," O'Connell Rodriguez said. "So you can check out VITA — Volunteer Income Tax Assistance — and put in where you live, your ZIP code, and they will connect you to the resources in your location where you can get access to free assistance to file your return."
MilTax offers a suite of free tax preparation and e-filing services for members of the military, their families and qualified veterans. The online software is provided by Military OneSource and can be used to file up to three state returns as well as a federal return.
Depending on the state, there may be other free filing services available to taxpayers to prepare and file their state returns. "Check your state department of finance and taxation to see if they have their own Free File set up," O'Connell Rodriguez said. "Some states will even allow you to just file your return for free right through your state's department of finance."
These various programs are available to millions of qualified Americans who can greatly benefit from these savings.
"It's money in your pocket if you can save money on taxes," O'Connell Rodriguez said. "Nobody cares about your money more than you do. So be your own best advocate and call up that Volunteer Income Tax Assistance hotline and utilize these free services. They're really there for taxpayers to maximize. So we should use them."