Tax Time: Free File here I come
“That means 70 percent of all taxpayers – 95 million taxpayers – can take advantage of the Free File program.”
Last year I used Inuit’s (Turbo Tax) Free File Software. I was very pleased with it and will be using it again this year.
The only catch is that with most (if not all) of these programs you have to pay for state taxes. (That is: Federal Tax Preparation=free; State Tax Preparation=$$). I think I paid around $10 or $20 last year for the state service. Alternatively you could just have the software do your Federal taxes and with that information fill out the State taxes yourself.
For me using tax software was well worth it. I could have probably done by taxes by hand, but I had more confidence using the software and got a better deal in the long run. (It found a tax credit I qualified for that I wasn’t aware of). This year my taxes will be even more complicated because of going back to school and working multiple part-time jobs; thus the software will benefit me even more. Also, because of all these life changes I have no idea if I owe or if the Government owes me. If the IRS owes me you can bet that I will be filing right away. If I owe them, well, I’ll wait until late-March/early-April to file.
UPDATE: TurboTax doesn’t have the same offer this year. You have to have an AGI of $27,000 or less unless you’re active military or qualify for an Earned Income Credit.