IRS Free File Program

Free for those who qualify
Reviewed
March 2011
Email
IRS Free File Program

Pros
  • Free preparation of federal tax returns
  • Free e-filing
  • Choice of online tax preparation software
Cons
  • 2010 adjusted gross income must be $58,000 or less
  • State filing may cost extra
  • Best for basic returns and schedules

The Internal Revenue Service Free File Program uses software from third-party vendors such as TurboTax and is available via the IRS website. It includes e-filing, and is free for all taxpayers whose 2010 adjusted gross income is $58,000 or less. Note, however, that the Free File Program is far from your only option when it comes to free online tax prep. In our update on tax preparation software, we note that most of the big software companies now offer some kind of free version. Preparation of state taxes isn't always free, however, and not everyone is comfortable preparing their taxes online.

If you'd rather get help in person, the IRS offers assistance at sites throughout the U.S. through the Volunteer Income Tax Assistance (VITA) program, which serves those who meet eligibility requirements for the earned income tax credit. For example, if you had a household income of less than $49,000 in 2010, you may qualify. If you're 60 years old or over and meet the income requirement, you have another option: the Tax Counseling for the Elderly (TCE) program, which partners with the AARP to provide tax help for seniors.

About.com is the best source we found for information regarding the IRS Free File Program. (Note: ConsumerSearch is owned by About.com, but the two don't share an editorial affiliation.) We also found some older informational articles about using the Free File Program at PCMag.com and PrimeTimeMoney.com.

Our Sources

1. About.com

Financial software guide Shelley Elmblad explains the Free File Program, including this year's two options, Traditional Free File (a vendor's software walks you through the process of completing your tax return) and Free File Fillable Forms (you fill in your tax-return forms online without software to assist you, though the program does do the math). You must meet income limits for the traditional free-file option, but not to use Fillable Forms. Elmblad also reports that companies like H&R Block, Jackson Hewitt and Liberty Tax Service now offer free online tax software for basic federal tax returns, without income restrictions, though you must pay for state returns. (Note: ConsumerSearch is owned by About.com, but the two don't share an editorial affiliation.)

Review: What is Free File?, Shelley Elmblad, Feb. 22, 2011

2. About.com

About.com's tax planning guide reviews the free online tax software offered through the IRS's Free File program. William Perez evaluates the software based on cost, ease of use, speed and accuracy and recommends several. (Note: ConsumerSearch is owned by About.com, but the two don't share an editorial affiliation.)

Review: Top 10 Free Tax Preparation Programs, William Perez

3. PCMag.com

In this roundup of tax software, Kathy Yakal makes the argument for using the government's Free File Program. Also included are reviews of the commercial software that's been adapted for the Free File Program.

Review: The Top Tools For Tax Season, Kathy Yakal, April 8, 2009

Tax Preparation Services Runners Up:

Jackson Hewitt *Est. $190 for an average return

1 pick including: ConsumerAffairs.com, SmartMoney.com…

Back to top