Irs Free File Now Accepting 2021 Tax Returns
COVID Tax Tip 2022-16, January 31, 2022
IRS Free File, available only through IRS.gov, is now accepting 2021 tax returns.
IRS Free File is available to any person or family with adjusted gross income of $73,000 or less in 2021. The fastest way to get a refund is by filing and accurate return electronically and selecting direct deposit. This year, there are eight Free File products in English and two in Spanish.
This program gives people an opportunity to file their taxes and claim the 2021 recovery rebate credit, the enhanced child tax credit, the earned income tax credit, and other credits. Taxpayers can also use Free File to claim their remaining child tax credit or any advance payments they did not receive in 2021. By law, the IRS cannot release earned income tax credit and additional child tax credit refunds until mid-February.
Additionally, IRS Free File users can use direct pay or electronic options to submit their tax payment if they owe a balance.
As an alternative, Free File Fillable Forms are electronic federal tax forms available to everyone, regardless of income. Only people who are knowledgeable and comfortable preparing their own tax return should use them.
File With Approved Tax Preparation Software
If you don’t qualify for free online filing options, you can still file your return electronically with the help of commercial tax preparation software. View approved software options.
To file on paper, see Forms and Paper Filing below. If you do choose to file on paper, please note that, due to COVID-19 workplace protocols and mail delays, it will take longer for us to process your return.
Youre Our First Priorityevery Time
We believe everyone should be able to make financial decisions with confidence. And while our site doesnt feature every company or financial product available on the market, were proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward and free.
So how do we make money? Our partners compensate us. This may influence which products we review and write about , but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services.Here is a list of our partners.
Recommended Reading: When To Expect My Tax Refund 2021
Information And Links That May Assist When The Program Is Closed:
- If you weren’t able to e-file your return but printed a copy, mail it
- If you do not have a copy to mail, you’ll need to prepare another return
- Get a transcript of youraccepted federal return data with Get Transcript
- For other filing options, view the Online Individuals page
- Get up-to-date refund information with Where’s My Refund
- Pay your balance or make estimated tax payments with Direct Pay
The Free File Fillable Forms program welcomes your .
Once the program opens in 2023, go to the IRS Free File page to start your tax return.
Some Private Firms Also Offer Free Services
There are also some private companies that offer tax filing services at no cost, such as TurboTax, owned by Intuit, H& R Block, TaxAct and Credit Karma.
These companies all have free filing options available to some, depending on their annual income, the simplicity of the return, where they live, military status, eligibility for certain credits and more.
Before using online software outside the IRS Free File program, check with the company to see if you’re eligible to file for free and make sure you’re using the correct product, instead of one that will charge you.
Gabriel Mendez- Frances, 20, a student at the University of Alabama in Huntsville, used Credit Karma for the first time to file his taxes last year. He previously did his taxes by hand printing out forms from the IRS website and mailing them in because he had a very simple return, he said.
But last year, he started making money through a side gig as a freelance software developer and wanted help filing his return. He used Credit Karma to help build his credit score, so decided to try their tax tool.
“It’s much more simple online,” Mendez-Frances said, adding that Credit Karma’s tool was a big help in filing his more complicated tax return last year. He didn’t pay anything to file his federal or state return, he said.
There are free options, they do not necessarily have to pay to get their taxes doneTania BrownCFP, financial coach, SaverLife
Don’t Miss: Where Do My Taxes Go
Free Online Tax Software
Online free tax preparation offers a convenient and reliable way to file your taxes.
If youre comfortable using computers and confident preparing your own taxes, consider using a free online tax software.
MyFreeTaxes is an easy online tool that helps you file your taxes for free. The site offers free step-by-step guidance to filing taxes as well as help through an online chat. Tax filing is free for both federal and state tax filing.
MyFreeTaxes offers a broader range of tax forms than most VITA sites. However, you cannot use this site if you have self-employment income. If youre not comfortable using the website on your own, ask someone you trust to help you.
Another free online option is Free File Alliance, a suite of programs in partnership with IRS. You can find Free File programs on the IRS website. If you choose to use one of these programs, read the fine print carefully. Each program has slightly different criteria for their software. In addition, some companies offer free state tax returns, while others dont.
Get The Help Of A Financial Professional
Filing your taxes as soon as the IRS accepts them provides benefits that include faster refunds and a lower risk of identity theft. However, filing taxes and maximizing deductions and credits can be complicated.
Even if you think your return is simple, a CPA might be able to clue you in on tax credits you didnt know existed.
Read Also: What States Have The Lowest Property Taxes
Can I Pay My Tax In Installments Over Time
If you find yourself owing more than you can afford, you should still file a return.
- Even if you dont enclose a check for the balance due, sending in your return protects you from the late-filing penalty that otherwise would keep digging you deeper into a hole.
- Attach a Form 9465 Installment Agreement Request to your tax return asking the IRS to set up a monthly payment plan to pay off what you owe.
About 2.5 million taxpayers are paying off their bills under such an arrangement and recently the IRS made it easier to qualify. In the past, before the IRS would okay an installment plan, the agency demanded a look at your financesyour assets, liabilities, cash flow and so onso it could decide how much you could afford to pay.
- Thats no longer required in cases where the amount owed is under $10,000 and the proposed payment plan doesnt stretch over more than three years.
- You can also now apply online for the installment agreement. More details are available on the IRS website
Dont think the IRS is a patsy, though. You may be better off if you can borrow the money to pay your bill, rather than go on an installment plan which means, effectively, borrowing from the IRS.
In an attempt to help Canadians struggling with record-high inflation and soaring rental prices, the Canadian governments one-time payment of $500 to eligible renters is taking applications starting Monday.
Heres what we know about the top-up to the Canada Housing Benefit.
Extension To File Your Tax Return
If you cant file your federal income tax return by the due date, you may be able to get a six-month extension from the Internal Revenue Service . This does not grant you more time to pay your taxes. To avoid possible penalties, estimate and pay the taxes you owe by the tax deadline of April 19, 2022, if you live in Maine or Massachusetts or April 18, 2022, for the rest of the country.
Recommended Reading: How Long Do I Have To File Tax Extension
What Happens If You File Taxes Late
If you are getting a refund, there is no penalty, according to H& R Block. Then again, not getting your money from the IRS might be punishment enough.
If you owe the IRS, the penalties kick in. TurboTax says penalties can reach 5% of the amount owed for each month you are late. The maximum amount taxpayers can be penalized is 25% of the amount due, according to TurboTax.
Recommended Reading: File State And Federal Taxes For Free
Claim Your Renewable Energy Credits
You might not be able to deduct your mortgage interest payments in any meaningful way, but you can still claim renewable energy credits. You should file Form 5695 if you have qualified costs for residential energy across any of these areas:
Youll also use this form to deduct any energy-efficient home improvements youve made to your property.
These nonrefundable credits can help lower your tax bill to $0, but they wont put any money back in your pocket.
You May Like: Where To Find Federal Tax Id Number
Some Private Sector Firms Have Offered Free E
IRS Free File program is a multi-year agreement between IRS and the Free File Alliance to provide free service to more taxpayers. To be true IRS Free File, the services must be accessed through IRS.gov.
With IRS Free File, taxpayers have easy access to IRS.gov/freefile, which offers a list of the participating free offerings on a single web page. Under our agreement, Free File Alliance companies offer both free preparation and free e-filing services. There is no cost for a federal tax return to qualifying taxpayers.
Note: The IRS does not endorse any individual Free File Alliance company. While the IRS manages the content of the IRS Free File pages accessible on IRS.gov/freefile, the IRS does not retain any taxpayer information entered on the Free File site.
Connect With Military Tax Consultants
If you have questions, enlist free one-on-one help from MilTax experts: tax pros with special training in military-specific tax situations. Call or chat anytime 24/7 to schedule a consultation, or get in person support at a Volunteer Income Tax Support Assistance office location.
VITA support may also be available elsewhere in your state but is not available in every state or location.
Talk to a Tax Pro
Also Check: How Far Can You Go Back To File Taxes
How Do I Choose The Right Tax Preparation Method
If you dont feel comfortable using tax software or just want live support, free in-person or virtual tax preparation is your best option. You may be able to find tax support from your local free tax site or Code for Americas Get Your Refund service.
If you feel comfortable filing your taxes with minimal support, free online filing services like MyFreeTaxes or Free File Alliance may provide what you need.
If you have self-employment income or make more money than the income limits for certain free tax filing programs, you can find a paid tax preparer or paid tax software. For paid tax software, use NerdWallets best tax software chart to compare options and find the best choice for your specific tax situation.
If you prefer in-person paid assistance, make sure to research your options first. Unfortunately, the tax industry is not regulated, so be careful when looking for assistance. Although many paid preparers are honest, some preparers take advantage of their clients by not disclosing their fees or offering refund anticipation products.
How To Get The Quickest Return
Filing your return as soon as possible helps you get any refund you are eligible for faster. That said, there is more you can do to help your cause.
The fastest way to get your tax refund is to eFile and choose to receive your payment via direct deposit. You do have the option to split your deposit into up to three separate accounts.
After you file, you can use the Wheres My Refund tool to track progress.
Don’t Miss: How Much Do You Need To Earn To File Taxes
Your Security Is A Top Priority Now And Always
TaxAct Costs Less: File for less and percentage savings claims based on comparison with TurboTax federal pricing for paid consumer online 1040 filing products on 10/07/2022.
Maximum Refund Guarantee: If an error in our software causes you to receive a smaller refund or larger tax liability than you receive using the same data with another tax preparation product, we will pay you the difference in the refund or liability up to $100,000 and refund the applicable software fees you paid us. Find out more about our Maximum Refund Guarantee.
$100k Accuracy Guarantee: If you pay an IRS or state penalty or interest because of a TaxAct calculation error, well pay you the difference in the refund or liability up to $100,000. This guarantee applies only to errors contained in our consumer prepared tax return software it doesnt apply to errors the customer makes. Find out more about our $100k Accuracy Guarantee.
Satisfaction Guarantee: If you are not 100% satisfied with any TaxAct product, you may stop using the product prior to printing or filing your return. We are unable to refund fees after you print or e-file your return.
Edition Pricing: Actual prices are determined at the time of payment, print, or e-file and are subject to change without notice. Add sales tax for applicable orders. Offers may end at any time and promotional offers may not be combined.
Also Check: How Does Income Tax Work
Be Aware Of Two Points In Going To These Sites:
The offers below are listed in alphabetical order, by company. To take advantage, read the descriptions, choose one of the offers, and click on the link. When you click, you will leave the Division of Taxation’s website.
1040NOW
With 1040NOW, you can prepare and file your federal and Rhode Island personal income tax returns online at no charge if:
- You live in Rhode Island and your federal adjusted gross income for 2021 was $32,000 or less.
Access 1040NOW’s dedicated Free File website by clicking on 1040Now’s Free File logo below. Otherwise, fees or charges may apply.
FreeTaxUSA
With FreeTaxUSA, you can prepare and file your federal and Rhode Island personal income tax returns online at no charge if:
- Your federal adjusted gross income for 2021 was $41,000 or less or
- You are active duty military with federal adjusted gross income for 2021 of $73,000 or less.
Access FreeTaxUSA’s dedicated Free File website by clicking on the logo below. Otherwise, fees or charges may apply.
Online Taxes at OLT.com
- Your federal adjusted gross income for 2021 was between $16,000 and $73,000 or
- You are active duty military with federal adjusted gross income of $73,000 or less.
Read Also: How Long Does It Take To Get Your Taxes
Main Takeaways About Filing Your Basic Federal Return With Taxact
TaxAct makes free online tax preparation easy when you file your basic federal tax return with us. Well guide you step-by-step through filing your own taxes for free.
When you file with us, youll also get peace of mind thanks to our free Xpert Assist2 feature that connects you with a real tax professional for tax assistance and our Maximum Refund and 100k Accuracy Guarantees.*
Ready to file? Lets get started.
All TaxAct offers, products and services are subject to applicable terms and conditions.
*Read more about the TaxAct Maximum Refund and $100k Accuracy Guarantees.
1Free TaxAct Online Free Edition makes free federal filing available for basic returns only. Not everyone has a basic return. Find out if you have a basic return and more about what this years Free Edition includes. For all other online products, you can start free and pay only when you file. This means you will not be charged if you decide to stop using any product prior to printing or e-filing.
2 Offer for Free TaxAct® Xpert Assist may expire at any time without notice. Xpert Assist is available as an added service to certain users of TaxActs online, consumer prepared 1040 product. Service hours limited to designated scheduling times and by expert availability. Some tax topics or situations may not be included as part of this service. View full TaxAct Xpert Assist Terms and Conditions here.
4 Our Deduction Maximizer is programmed to research dozens of deductions that often go overlooked.
Free Virtual Tax Filing Service
Code for America, in partnership with VITA, has created a fully virtual intake process for free tax assistance. In light of COVID-19, Code for Americas Get Your Refund service is a free and safe alternative to prepare your tax return without the risk of in-person interaction.
Visit Get Your Refund to connect with an IRS-certified volunteer who will help you file your taxes. First, you will upload your tax documents online. Then, an IRS-certified volunteer will call you to discuss, prepare, and review your tax return for filing.
Code for Americas Get Your Refund service is free for those who earn less than about $66,000. This is a good option if you are comfortable using technology, including sending pictures or documents electronically.
Don’t Miss: How Much Is Tax In Los Angeles
Tax Counseling For The Elderly
The Tax Counseling for the Elderly Program, or TCE, provides free basic tax return preparation to people ages 60 and older. The program has been around for 45 years.
The IRS provides funding to various community organizations, such as the United Way, which administer programs at the local level.
Volunteers are trained to assist with retirement-specific tax issues, including questions about pensions, Social Security and required minimum distributions.
You can rest assured your tax return is in good hands: All TCE volunteers who prepare returns are required to undergo and pass tax law training that meets or exceeds IRS standards.
You dont need to fill out an application to receive help at a TCE site, but most locations require an appointment.
To find the nearest TCE site in your area, call 800-906-9887 or use the VITA/TCE Locator Tool.
