As the saying goes: “Nothing is certain except death and taxes.” The dreaded IRS filing deadline is more than two weeks away! While the average 2014 refund is up this year compared to last, Americans are paying more for professionals to do their taxes. No cash? No problem! If you meet the financial requirement, you can file your federal taxes for FREE! Here’s what you need to know:
$AVED BY THE NUMBERS:
IT’S ALL ABOUT THE BENJAMINS: If you earn $60,000 or less, you can file your federal taxes at no cost using IRS Free File. Did you make more than that last year? If so, there's still an option: Free File Fillable Forms, the electronic version of the paper forms.
MONEY MAKES THE WORLD GO 'ROUND: The IRS says 70% of Americans are eligible to file their taxes for free. That's no surprise given that most recent Census Bureau data shows that the median household income in the United States in 2013 was $51,939.
THE CHOICE IS YOURS: After answering a series of questions, the IRS will determine if you are eligible. Free File offers software from 14 tax preparation companies and you will be given the ability to choose. Keep in mind - in order to get the discount, make sure you go through the IRS portal, not directly to the participating companies' websites.
MONEY MAKES THE WORLD GO 'ROUND: The IRS says 70% of Americans are eligible to file their taxes for free. That's no surprise given that most recent Census Bureau data shows that the median household income in the United States in 2013 was $51,939.
THE CHOICE IS YOURS: After answering a series of questions, the IRS will determine if you are eligible. Free File offers software from 14 tax preparation companies and you will be given the ability to choose. Keep in mind - in order to get the discount, make sure you go through the IRS portal, not directly to the participating companies' websites.
STATE OF MIND: Free File may not automatically extend to your state return. 20 states and Washington D.C. have their own version of Free File for their state taxes. The list includes: Arizona, Arkansas, District of Columbia, Georgia, Idaho, Indiana, Iowa, Kentucky, Michigan, Minnesota, Mississippi, Missouri, North Carolina, North Dakota, Oregon, Pennsylvania, Rhode Island, South Carolina, Vermont, Virginia and West Virginia. Many of the participating tax preparation companies will file your state taxes for a small fee.
REFUNDS RISING: Did you know that 2014 refunds are running ahead of the previous tax filing season? Through March 20, the IRS says the average refund was $2,893. The total paid out so far? $191.233 billion.
SAVINGS SENSE: Filing a tax return can be expensive! The National Society of Accountants says taxpayers looking to hire a professional to complete their 2014 tax return can expect to pay $273 for an itemized Form 1040 with Schedule A and a state tax return. This is a 4.6% increase over the average fee last year, which was $152.
SHOW ME THE MONEY: You can combine e-file and direct deposit to get your money faster. You can also track your refund using the “Where’s My Refund” tool on IRS.gov.
Want more information on Free File? Visit the IRS Free File website:
You've just been SAVED BY THE BELL!
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