IRS Free File Software Now Open for Tax Preparation

Many taxpayers can prepare and file their federal income tax returns on the Web at no charge. These free tax preparation services are provided through the Free File Program, which is a collaboration between the IRS and various software publishers to make their tax prep programs available free of charge to eligible taxpayers.

Taxpayers with an adjusted gross income of $54,000 or less will be eligible to use the Free File services. The IRS estimates that seven out of ten taxpayers will be able to use the Free File program to prepare and to file their taxes. Each participating vendor sets its own eligibility criteria, however. Popular tax program TurboTax is available through Free File, for example, "if your Adjusted Gross Income is $30,000 or less or you will claim EITC, or you are active duty military with an AGI of $54,000 or less." Other vendors have similar eligibility criteria, which can make it confusing just to start the tax preparation process. Here's a list of all the participating Free File vendors and their Free File eligibility criteria.

Free File is also available in Spanish, and two of the software vendors offer their tax prep software in Spanish.

Since this year's batch of Free File software has just opened to the public, I will be taking quite a bit time over the next few days to test each of the 18 Web-based software programs participating in the Free File program.

More information:

• Most Taxpayers Eligible to File Their Taxes Online for Free (IR-2008-6 from the IRS Web site)
• IRS E-File Opens for 2008 Filing Season for Most Taxpayers (IR-2008-5 from the IRS Web site)
• IRS Free File Program start page (on the IRS Web site)
• Reviews of last year's Free File software (from About.com)