The IRS's Free Fileprogram allows those with adjusted gross incomes under $62k to use the Free File software for their federal taxes for no charge in a partnership with the Free File Alliance. Many states also partner with the FFA to offer free state tax returns to those that qualify, and some states offer free e-filing for all taxpayers. Tax return processing will begin January 19, 2016.
(Note: Every taxpayer regardless of income can file for free if you want to fill out the tax forms by hand. The free service being provided here is the software back end that does the calculations for you. Tax returns prepared electronically are generally more accurate than those filled out by hand, reducing processing time and the potential for penalties that result from errors in your filing.)
What can you do in January to prepare for tax season?
- Finish up any IRA contributions for 2015 (you have until April 15, 2016 to make 2015 IRA contributions).
- Look up the schedules your various financial institutions are planning on issuing your documentation (1099s, etc) so you can watch for them. Ask your employer when you will receive your W-2.
- If you are considering professional tax preparation and haven't done so before (or are switching preparers), now is the time to be asking around to find a tax preparer. If you have an established relationship, it's always nice to reach out to say you will/will not be going with the same person again.Texas - No state income tax.Additionally, there are programs to have your taxes prepared by someone else for free. I "worked" for Volunteer Income Tax Assistance (VITA) in college. The IRS says you qualify if your income is under $54k, but in my own experience, as long as your return is simple, the dollar amounts don't really matter. But the guy in charge of our site was pretty lenient.They have locations listed on the IRS website.VITA is definitely a great option for many. Your local university accounting group, AARP, or various social service nonprofits are probably your local VITA location, if you have one in your area.All VITA sites are different - some require appointments, others have walk in hours, some do a bit of both. The IRS search lets you know and gives you their contact information to reach out directly.
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