postheadericon How to Calculate Income Tax Returns for Free

E-file through IRS is the safest, fastest and easiest way to prepare and calculate income tax returns. Almost a billion Form 1040 series tax returns have been e-filed by taxpayers since it became available in 1986. Now with the IRS Free File to provide free online tax preparation and filing services, you can take advantage of this by following these simple steps.

How to Calculate Income Tax Returns for Free

1 Gather all your tax information such as last year’s tax return, W-2 forms, or 1099.

How to Calculate Income Tax Returns for Free

2 Determine how much your adjusted gross income is. This information will tell you if you are eligible for Free File.

How to Calculate Income Tax Returns for Free

3 Use Free File service through the IRS. Go to www.irs.gov/freefile to access this service. Free File allows you to e-file your federal tax at no charge. Although, there are Free File companies or Alliance members who do not charge a fee for state tax returns.

How to Calculate Income Tax Returns for Free

4 Find Free File tax software. To be eligible for this program, you must have an adjusted gross income of no more than $58,000. You can do either one of these 2 ways: Review a list of Free File software companies. Go to http://apps.irs.gov/app/freeFile to view the list. Free File companies have their own eligibility requirements.

How to Calculate Income Tax Returns for Free

Use a web tool to find a Free File company at http://apps.irs.gov/app/freeFile/jsp/wizard.jsp. You will be asked to enter your information such as age, income, state, eligibility for Earned Income Tax credit and military status.

How to Calculate Income Tax Returns for Free
How to Calculate Income Tax Returns for Free

5 Enter your information and let the tax software do the math for you. All you have to do is answer the series of questions and get the information from your W-2 forms and other records needed for filing.

How to Calculate Income Tax Returns for Free

6 Use an alternative to Free File software if preferred. Free File Fillable Forms through the IRS is available to all taxpayers, including those who made more than $58,000. You can find Fillable Forms online at www.freefilefillableforms.com. This is an electronic version of IRS paper forms in a fill-in-the-blank format.

How to Calculate Income Tax Returns for Free

You will need to enter your information, such as your exemptions, standard or itemized deductions, your taxable amount, and the amount of adjusted gross income. You must be able to do the calculations when using these forms.

How to Calculate Income Tax Returns for Free
How to Calculate Income Tax Returns for Free

7 Send your tax return to the IRS electronically using e-file. Get your tax refund through direct deposit. Direct deposit is the fastest (it could take only 10 days) and safest way to get your refund. And, after you e-file, you can track your refund status within 72 hours.

How to Calculate Income Tax Returns for Free

Pay electronically if you owe taxes. It is convenient, safe and secure. You can authorize electronic funds withdrawal, pay with your credit or debit card, or even enroll in the US Treasury Electronic Federal Tax Payment System (EFTPS).

How to Calculate Income Tax Returns for Free

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