March 2007

And now some good news about taxes: there’s a free federal tax preparation and electronic filing program for eligible taxpayers, called The Free File program. It debuted in 2003 and was developed through a partnership between the Internal Revenue Service and the Free File Alliance LLC, a group of private sector tax software companies. Free File allows taxpayers with an Adjusted Gross Income (AGI) of $52,000 or less in 2006 to e-file their federal tax returns for free — which is 70 percent of all taxpayers.

To find out more information, go to (www.irs.gov) and click on 2007 Free File near the top of the page. This well-organized web site also has information on almost any tax topic, as well as instructions and all the various forms. The site even has some interactive tools for making certain caluculations.

The dozens of links on the page for individual filers include information on free tax return preparation by volunteers, electronic filing, and the Earned Income Tax Credit. There are special sections of the site for businesses, students, senior citizens, the self-employed, parents, and more.

Another freebie is TaxACT.com, a free service for preparing and filing taxes. According to the web site, “Despite claims by others to offer free preparation and e-file services, the only place where all American taxpayers can find truly free federal tax preparation software and e-filing services is at TaxACT.com.” TaxACT Standard includes the forms, schedules and worksheets filers need to prepare 1040, 1040A and 1040 EZ Individual Income Tax Returns. Their Deluxe edition ($10 for doing your taxes via the web and $13 for downloading their tax preparation software) includes extra help and advice and free phone support.

Another service is ExpressTaxRefund.com, which is more expensive at $30. The site offers live expert assistance with telephone support seven days a week. Refunds are generally available in eight days.