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PHOENIX - - The Internal Revenue Service (IRS) and the Free File Alliance today announced the launch of Free File, which makes brand-name tax software products and electronic filing available to most taxpayers for free.

Free File software can help taxpayers with tax preparation, including the health care law that will affect almost everyone. People can use Free File software immediately but e-filed returns will not be transmitted to the IRS untilTuesday, January 20, when the filing season officially begins.

Free File is available only at IRS.gov/FreeFile<;http://freefile.irs.gov/>, thanks to a partnership between the IRS and the Free File Alliance, a consortium of 14 leading tax software companies that make their branded products available for free. Since 2003, more than 43 million people have used Free File, saving $1.3 billion based on a conservative $30-fee estimate. Locally, 64,917 Arizonans choose Free File to submit their tax return last year.

"You don't have to be an expert on taxes or the new health care law. Free File software can help walk you through the rules and help you get it right," said John A. Koskinen, IRS Commissioner. "For 12 years, this partnership between the IRS and the Free File Alliance has helped taxpayers save both money and time. The real winner in this partnership has been the nation's taxpayers."

Tim Hugo, executive director of the Free File Alliance, said, "We are proud to once again offer the industry's most innovative and secure tax software at no cost to 70 percent of American taxpayers. Tax time can be stressful, but Free File makes step-by-step help accessible to everyone making $60,000 or less. IRS.gov/FreeFile; is the one place where taxpayers can choose from a variety of industry-leading tax software options in order to prepare and e-file their federal tax returns at absolutely no cost."

If you earned $60,000 or less last year, you are eligible to choose from among 14 software products. If you earned more, you are still eligible for Free File Fillable Forms, the electronic version of IRS paper forms. This more basic Free File option, which is best for people comfortable preparing their own tax return, will be availableJanuary 20.

More than 70 percent of all taxpayers - 100 million people - are eligible for the software products. Each of the 14 companies has its own special offers, generally based on age, income or state residency. Taxpayers can review each company offer or they can use a "Help Me" tool that will find the software for which they are eligible.

Free File offers easy-to-use products that ask questions and you supply the answers. The software will find the right forms, find the right tax credits and deductions and even do the math for you.

Some companies also offer free state tax return preparation as well.

Free File also can help taxpayers with the new health care requirements. Almost everyone will need to do something new when filing a tax return this year. For each month in 2014, you and everyone on your return must:

Follow this link:
IRS Free File Now Available; Will Help Arizona Taxpayers with New Health Care Law

Mark Hachman | Jan. 19, 2015

E-filing federal tax returns is free for people whose needs are simple. Get all the details here--and easy access to a variety of free tax software from top providers.

Free tax software and free e-filing for federal returns are here: The IRS has opened its Free File portal, which offers handy links to all the top vendors--provided you don't make that much.

The Internal Revenue Service said Friday that its e-filing system is open for the 2014 tax year. U.S. taxpayers can e-file their taxes either by using online forms the IRS itself provides, or choosing from Free File's fourteen tax preparation services, including name brands like H&R Block.

Taxpayers can also file their own taxes using pen and paper, of course. The IRS says that it is committed to processing9 out of 10 refunds within 21 days. But the IRS also said that due to budget cuts, paper filings will take an additional week or so to process. The agency also said it expects hold times to speak with an IRS agent to stretch to 30 minutes or more. If you have questions, the best place to start would be the IRS website.

Why this matters: Free tax help from trusted names in tax preparation is always a comfort when crunch time kicks in. The 14 names on the list include some of the biggies: H&R Block, Intuit's TurboTax, and Jackson Hewitt, among others. But the more obscure tax services--Free1040TaxReturn.com is a good example--offer the fewest restrictions to signing up. That may give some of you pause.

Who can file for free

The Free File list of tax preparation servicesdoes have some caveats, however. In general, you'll need to make less than $60,000 in gross income for 2014 to qualify. Some of the most popular services have even tighter income restrictions: TurboTax requires you to earn less than $31,000 to qualify, for example. In some cases, there are age restrictions.Those who own a home, earned a hefty salary, or have a broad array of investments may be ineligible for the free services, and may have to sign up for a paid service.

The services aren't available in all states, either, so be sure to check whether you're eligible. And, of course, you'll still need to file a separate state return. Free filing options will vary from state to state. Interestingly, California has a state tax e-filing program called CalFile, but you'll have to hunt down any references to third-party tax sites. Tiny, sparsely populatedNorth Dakota makes it much easier, as does New York, although the New York site wasn't open for business yet at press time.

Also keep in mind that 2014 was the year that the Affordable Care Act was enacted. In many cases, you'll simply have to tick a box stating that you and your dependents had health insurance for the year, the IRS said.

Excerpt from:
U.S. IRS opens Free File portal for e-filing of tax returns, but only for those of modest means

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SEATTLE The Internal Revenue Service and the Free File Alliance announced Jan. 16 the launch of Free File, which makes brand-name tax software products and electronic filing available to most taxpayers in Washington.

Free File software can help taxpayers with tax preparation, including the health care law that will affect almost everyone. Washington taxpayers can use Free File software immediately but e-filed returns will not be transmitted to the IRS until Jan. 20, when the filing season officially begins.

Free File is available only at IRS.gov/FreeFile, thanks to a partnership between the IRS and the Free File Alliance, a consortium of 14 leading tax software companies.

About 70 percent of all federal tax returns come in below the $60,000 income level, says IRS Spokesman David Tucker II. Millions can use it to file a federal income tax return for free.

Nationally, more than 3.2 million people used Free File last year with nearly 76,000 coming from Washington.

Since 2003, more than 43 million people have used Free File, saving $1.3 billion based on a conservative $30-free estimate.

You dont have to be an expert on taxes or the new health care law. Free File software can help walk you through the rules and help you get it right, said John A. Koskinen, IRS Commissioner. For 12 years, this partnership between the IRS and the Free File Alliance had helped taxpayers save both money and time. The real winner in this partnership has been the nations taxpayers.

Taxpayers who earned $60,000 or less last year are eligible to choose from among 14 software products. For those who earned more, they are still eligible for Free File Fillable Forms, the electronic version of IRS paper forms. This more basic Free File option, which is best for people comfortable preparing their own tax return, Free File offers easy-to-use products that ask questions and supplies answers. The software will find the right forms, find the right tax credits and deductions and even do the math.

Free File also can help taxpayers with the new health care requirements. Almost everyone will need to do something new when filing a tax return this year. For each month in 2014, you and everyone on your return

Report health care coverage, or

Originally posted here:
IRS Free File launches; helps state taxpayers with new health care law