If you're not sure which way to go this tax season, ask yourself the following: How has my life changed over the past year? While a free file program makes sense under some circumstances, it's not right for everyone. When paying for tax filing services makes sense If you go into tax preparation without knowing which type of return works best for you, you could be disappointed by having to spend more money than planned to complete your taxes. Most tax preparation programs allow you to begin your taxes for free and it's only when you're deep into the return you learn you'll need to upgrade to a different program. For example, if a problem arises and you need a tax professional to walk you through, there may be a fee involved. It's important to know that you may run into fees if you need assistance.
Access to a tax professional when needed.In compiling this list, we looked for tax software with the following characteristics: Credits, deductions, and income reported on schedules 1-3 (although Cash App Taxes and H&R Block free file versions accommodate filers with these schedules).Here's an idea of the kind of taxpayer who is unlikely to qualify for most free tax prep offers: Have limited interest and investment income.Claim the Earned Income Tax Credit (EITC).Claim the standard deduction (rather than itemizing).Here's a breakdown of the types of taxpayers who can take advantage of most free-file offers: Those with more complex tax returns are better off using tax prep software designed to walk them through the entire process.
Taxpayers who file Form 1040 only are ideal candidates for free tax filing.
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