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Some tax preparers are touting free filing software to taxpayers but many who are eligible for the service could already file that paperwork for free.
Intuits INTU, -1.17% TurboTax is advertising a new free service this season to file both federal and state 1040A and 1040EZ returns. Since the 2003 filing season, taxpayers who earn $60,000 or less have already had this option: The IRS has a Free File program that includes preparation and electronic filing services in partnership with 14 tax software companies. Those who earned more can still file a range of the most common forms for free through the IRS using the electronic version of paper IRS forms.
Read: Reality check on Obamas tax proposals
Since 2003, more than 43 million federal tax returns have been submitted using the Free File system, saving taxpayers $1.3 billion, according to the IRS.
At the State of the Union on Tuesday, President Obama took a few jabs at the new Republican-controlled 114th Congress.
The IRS says more than 70% of taxpayers are eligible for the software.
The new TurboTax promotion allows taxpayers to file 1040A or 1040EZ forms for free, regardless of their income. Those two types of forms accounted for about 43% of returns filed for the 2012 tax season, according to IRS data.
Colleen Gatlin, a spokeswoman for the company, told MarketWatch that while TurboTax has for years offered the free federal version its among the IRS Free File partners the new program also offers free state returns. About 29 million customers used TurboTax last year, Gatlin says.
Some companies offer free state returns through the Free File program, according to the IRS. And 20 states and D.C. also offer their own version of Free File.
This has been around for some time so it should not be something that changes things for this upcoming filing season, says Melanie Lauridsen, a technical manager at the tax division of the American Institute of CPAs, referring to new promotions.
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TurboTax offers free filing service but for many, it was already free