Free Tax Filing?

It’s true. You can file your taxes for free. The IRS provides resources that allow most taxpayers to file their tax returns for free. If your income is less than $64,000, you can use Free File software that will enable you to file federal and state returns for free.

If your income is above $64,000 you can use Free File fillable forms. State returns are not available.

It may seem odd that a CPA firm is posting in a blog to tell potential clients that they can file their tax returns for free. It’s not. CPAs see themselves as trusted advisors. My firm, and the firms run by my CPA colleagues, focus on meeting client needs. That does not mean simply providing services for a fee. It means taking the time to work with clients to understand their needs. Most of us also work hard to make sure clients understand the reasons why things are done the way they are. That means taking the time to explain tax concepts. Seemingly simple terms such as income, deduction, exemption, or credit can be surprisingly complex. If your financial situation is very simple, you may find it advantageous to take advantage of free filing. On the other hand, your time has value, and you may want the peace of mind that working with a professional tax preparer such as a CPA can provide.

Is Free File for you? Only you can answer that. If your financial situation is simple, and you know what you are doing, Free File may be exactly what you need. Even if you choose to use Free File, you may still want to check with your trusted advisor.

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