If you’re doing your own business taxes, you need a good tax software program. Whether you want to maximize your credits and deductions, or avoid penalties and audits, you need to be sure you’re partnering with a great company. Incomplete forms and inaccuracies are unforgivable when it comes to taxation, so it’s important to select software that’s going to do the job right the first time.
IRS Free File Software
Might be good for you: If you want a variety of options to choose from. IRS Free File Software allows you to prepare and e-file your taxes for free through certain brand-name software.
May not be the best: If your adjusted gross income in 2017 was more than $66,000, you cannot use IRS Free File Software to file your 2017 taxes.
Pros
Works with multiple free brand-name software programs. The IRS website lists a dozen free-file software providers.
Help choosing a provider. By answering some basic life questions such as your income, age and state of residence, the Free File Software Lookup Tool can help you choose a Free File Software provider for your tax situation.
Cons
There’s an income limit. You can’t use IRS Free File to file your 2017 tax return if your AGI exceeded $66,000 in 2017.
You may not qualify for all the business automation software available. Each software provider may have its own eligibility requirements, and you may be restricted based on your age, state of residence and/or military status.
You may have to pay to file your state taxes. Some companies will allow you to also file a state return for free, while others will charge. You’ll need to review each company’s offering to find out if a state return is included in the free e-filing service.
So, What is unique about Free File?
Completely free taxation platform. Free File allows taxpayers to choose their preferred company to prepare and efile tax returns for free. It is also combined with direct deposits to enable users to obtain refunds in a shorter period of time.
Free fillable forms. The Free File Fillable Forms offers taxpayers a convenient way to fill IRS forms electronically. It is an excellent option for taxpayers used to preparing and filing income taxes on their own.
Tax breaks. Free File features a question-and-answer format which is instrumental in helping eligible taxpayers to find tax breaks. Some of the possible tax breaks reserved for taxpayers could consist of credits like the earned income tax credit and more.
Easy online extensions. If for any reason you fail to finish your tax return by the deadline, you can request a six-month extension using the Free File. However, the extension to file your returns will not mean an extension of the time to pay.
IRS partnership. This service is, in fact, a result of the partnership between the International Revenue Service (IRS) and the Free File Alliance, a union of the leading private sector tax preparation institutions.