On Wednesday, we touched on taxes — specifically how to file a certain tax form related to your retirement plans.
Today, Beau Henderson from The Rich Retirement Letter will introduce the IRS’ “Free File” tool and show you how to get started using it in three easy steps.
Take a look.
Publisher, Unconventional Wealth
How to Use This IRS Tool in 3 Easy Steps
Tax season is here!
And this year, there’s a little extra incentive to get a head start.
That’s because the IRS recently opened its Free File software, which will help many Americans file their 2019 federal taxes completely free.
The Free File program is estimated to have saved American taxpayers $1.7 billion in the years since its inception.
If you qualify for the service, it means you won’t have to pay a dime to prepare your tax return.
And today, I’m going to tell you everything you need to know about it for this year’s tax season.
Let’s jump right in…
Introducing the IRS “Free File” Tool
The IRS has partnered with some of the country’s leading commercial tax preparation services through the Free File Alliance to help taxpayers like you save money submitting their annual tax forms.
Some of the big names participating this year are Intuit (maker of TurboTax) and H&R Block.
And if you meet certain income requirements, you can use their federal tax return products for free.
Each individual provider has their own unique set of eligibility requirements based on factors like age, income and where you live. So you might not have the complete range of services at your disposal.
But if your adjusted gross income for last year was under $69,000, then you’ll be eligible to use at least one of the online packages offered by Free File.
For those 65 and up, there’s even better news…
Free File also offers the new Form 1040-SR option, which is a new and easy-to-read form designed to help seniors file their taxes efficiently.
If you’re interested in taking advantage of this helpful tool, here’s what to do.
Getting Started in 3 Easy Steps
The quickest way to complete your filing and receive your tax return is to file electronically.
It’s important that you complete and file your taxes only if you have all the income and deduction records that you need.
But once you get all the paperwork together, you can start filing your taxes for free in three easy steps:
- Visit the IRS’ Free File web page.
- Browse through each of the different offers, or use the “look up” tool to help you find the right product for your individual situation.
- Choose a provider and follow the links to their web page to begin your tax return.
The fastest way to get any refund you’re owed is choosing to have it deposited directly into your bank account.
And if you owe the IRS money, you’ll also want to consider using an electronic payment as well. It’s the quickest and most secure way to complete your filing.
Keep in mind this is only for federal income taxes.
Free File does offer some assistance preparing your state tax return, some services for free and others for a fee.
You can find these tools using the “look up” feature that I mentioned earlier.
For those who qualify, using Free File is a great way to file income taxes completely free.
And with the new 1040-SR form available for seniors, it’s now easier than ever.
But if you’re still not comfortable filing your own tax return, there are a few other free options at your disposal…
The IRS offers the Volunteer Income Tax Assistance (VITA) program, which gives qualified individuals access to certified volunteers to help with basic income tax return preparation.
This program is intended primarily for those who make $56,000 or less, have disabilities or aren’t proficient in English.
And AARP supports the Tax Counseling for the Elderly (TCE) program, which offers free tax assistance to those ages 60 and up.
They specialize in questions about pensions, retirement accounts and other related issues unique to seniors.
So if you’d like to learn more about finding a VITA or TCE location near you, search for a nearby location on the IRS website.
Don’t be afraid to take advantage of all the free resources out there that can help you plan for — or enjoy — the rich retirement you deserve.
Here’s to living rich,
P.S. Want more ways to build a richer retirement? Sign up for a free subscription to Beau Henderson’s The Rich Retirement Letter here.