It is actually free to file taxes for millions of Americans and there are a number of tools and programs that could make the process a lot less stressful and affordable. There are free possibilities at all levels of difficulty, whether you are filing this year’s tax return or are trying to catch up with your tax returns from previous years. This blog outline all your options in a clear manner so that you can make an informed decision on whether free filing is right for you or not and whether hiring the professionals is.
What is the easiest method to get the current taxes done free?
The top free tax filing sites are Free File, VITA and free software versions of tax preparation programs. Many features and eligibility requirements differ knowing what’s included in each and what you qualify for will save time and prevent you from being surprised during the process.
Learn about Free Tax Filing Options and Eligibility
IRS Free File offers free, guided and brand name software for taxpayers with an adjusted gross income of $79,000 or less. VITA( Volunteer Income Tax Assistance) provides free tax preparation for qualified individuals whose incomes are low to moderate, people with disabilities and limited English proficiency with IRS certified volunteers.
How and Can You File Back Taxes for Free and How Far Back Can You File?
Yes, back taxes may be able to be filed for free and the IRS is looking for returns to be filed to comply with tax rules back 6 years, but there is no statute of limitations on filing a return that was never filed.
Options for filing past-due tax returns are numerous.
- Free options for back taxes are not as extensive as for year-to-date taxes IRS Free File offers only year-to-date tax returns, so year-to-year tax returns are usually available only on downloadable software, as paper-filed returns or pro tax returns are needed. The IRS offers free fillable forms for previous years, but isn’t supported by guided tax preparation software.
- Free tools are not always enough for those who have unfiled returns, IRS notices or complicated back-tax issues. That’s where professional assistance can really help. H&M Tax Group does not provide tax preparation services for free, however our accountant staff can assist you with complex tax filings, IRS correspondence, bookkeeping and back tax resolution, ensuring that the document is accurate and complete, required for any back tax resolution service.
How to use Free Tax Filing Options in Simple Tax and Complex Tax Situations?
There are a number of choices for filing that are free, from complete software that guides you through the process to simple forms for those more adept at filing, but they have their limits when income sources, deductions, and compliance become more complex.
IRS Tools, free tax software and other methods of filing.
- IRS Free File Guided Software is best for easy returns with earnings less than $79,000; it features brand-name software with guidance via the IRS website, for free to filers.
- IRS Free Fillable Forms: These are for anyone with income, but provide no direction and are best suited for those who have some experience in preparing their tax returns on their own without any “how-to” assistance.
- VITA and TCE sites: Free, face-to-face help for those who qualify, such as people with simple returns that don’t include business income or complex investment activity and seniors and low-income individuals.
- Some commercial software, like TaxSlayer, TurboTax Free Edition and H&R Block Free Online, are free for simple W-2 returns but usually have fees for upgrades if more forms or schedules are required.
What documents are needed when taxing current and back taxes?
The best way to go quickly and smoothly through any filing, free or professional, is to have the necessary documents in front of you. Some of the most frequent problems causing returns to be delayed, rejected, or filed incorrectly the first time are missing documents.
Collection of Income Records, Deductions and Supporting Papers
- W-2 forms from all employers from the tax year – all paid employees get these forms, no matter how they file their taxes.
- Any 1099 income earned outside of your employment, such as from investments, retirement distributions and 1099s that are not received by you for income from your job (for the tax year the 1099 was issued for) are IRS discrepancies.
- Prior year tax returns are important especially for back tax filing because they include carryforward amounts, adjusted gross income and filing history that all influence the current filing.
- Documentation of deductions, such as mortgage interest, charitable contributions, business expenses and education deductions, to prevent missed deductions and support any amounts claimed on the return.
When income taxes go beyond the scope of the free tools, H&M Tax Group can provide income tax filing, bookkeeping, and QuickBooks services to individuals and businesses. When it involves complexity, back taxes or IRS issues, get professional assistance it costs a lot less to file correctly in the beginning than fix errors afterward.
H&M Tax Group is Your Comprehensive Tax Solution for All Your Tax Needs
- Expert Tax Professionals
- Certified CPAs
- Quality Of Service
- Affordable Rates
Conclusion
Free tax filing is a great feature if you have your tax filing situation is simple however it does have its boundaries. Understanding the right tool for the job will save time and prevent you from making expensive mistakes. If you need help with back taxes, business income, or IRS correspondence, H&M Tax Group is the Dallas CPA firm that will be there with the professional assistance you deserve.