When it comes to choosing a great online tax service, the word free, is the most commonly searched term to go with it. And while many companies offer a free online federal file, state filings typically sell for a premium.
Taxes are always free to file the good-old-fashioned way, at both the Federal and State level. However, good tax preparation software will save you a bunch of time and energy and are often well worth the small investment. THE FREE FILE ALLIANCE The IRS began the FREE FILE ALLIANCE in 2000 as a program to help ease the burden of the IRS.Gov site from filing taxes and open up the free market to build a better mousetrap when it comes to filing taxes. Companies who participate are required to meet strict security and privacy regulations. The program is open to individuals who earn less than $66,000 but each company tends to set age requirements as well. Here are what we believe to be the five best free online tax services: 5) H&R BLOCK ONLINE FREE EDITION
-Free to file basic Federal & State Taxes
-$29.99 For Deluxe Federal taxes -$36.99 For Deluxe State taxes Why we like it. H&R Block offers a free federal and state tax option (for very basic tax situations) . If you are a homeowner or have capital gains or more complicated deductions, the deluxe version is the way to go but will set you back a couple extra bucks. 4) eSMART TAX FREE EDITION
-Free to file basic federal taxes -$29.99 State Forms available
-$39.95 For Deluxe Federal
-$36.95 For Deluxe State
Why we like it. eSmart tax free plan is an extension of Liberty Tax. You know, the statue of liberty you see waving at the street corners come tax season? The programs have very clear options, and even a mid-level program if you want a schedule C.
-Free to file federal taxes
-Free to file state taxes
Why we like it. It is definitely free. Any good list of free tax filing options would not be complete without this one. However, you definitely get what you pay for. No service department to walk you through, no ability to import taxes from previous years, no audit options as you go to help you maximize deductions. As close as you can get to a traditional paper option in electronic format. 2) TAXSLAYER
-Free to file basic Federal & State taxes
-$37.00 for Premium Federal Taxes -$29.00 for Premium State Taxes Why we like it. It offers a free version that covers a minimal amount of items but also a $17 mid level option if you don't quite need everything the premium has to offer. The tiered options make the process more enjoyable if you do find you come across a piece of your taxes that requires a premium product.
1) TURBOTAX
-Free to file basic Federal & State taxes -$39.99 for Deluxe Federal taxes -$39.99 for Deluxe State taxes
Why we like it. It offers tiered options and many easy-to-use convenience features to make tax preparation easy and quick. The free version comes without the ability to make deductions like most free software, but has many different options including "self-employed" tier for more complicated tax situation.
Overall, if you are searching for the right free tax preparation software, you want to make sure that the ease of use works for you. Because doing your taxes right is always the best choice. If you have trouble using the software, you can always visit your local accountant for the easiest process of them all: have someone file it for you. Shockingly, this option is typically price competitive to many of the premium options available on tax preparation websites.