Free e-file

Hi,

Some sites offer free e-file, I hear. Who? and what's the catch?

I am deciding between TaxCut again or trying TaxAct. TaxCut lets me input last years information - maybe worth the $20 price difference but TaxAct gives free e-file. Free e-file elsewhere would tip the balance.

Thanks, Gary

Reply to
Gary Brown
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While I know nothing about either TaxCut or TaxAct, we all know nothing is truly free. Is there really a free e-file or is just a come-on to get "your personal information"? Selling "your personal information" is a major revenue stream stream for many companies.

Why not optimize your withholdings and paper file? Your refund or taxes due should be minimal and you should receive fewer telemarketer calls (if that is possible)!

Dick

Reply to
Dick Adams

They're probably trying to sell you refund anticipation loans at rates that would make your local loan shark blush.

Reply to
John Levine

It's so usurous that I'm surprised the Mafia has not started a tax prep business. But maybe they have.

Dick

Reply to
Dick Adams

TaxCut and TaxAct are both legitimate. They both have been around for several years. You can buy TaxCut at Wal-Mart. It used to sell for about $9.99, I think it is double that now. You can go to TaxAct on the web and file your Federal income tax free and e-file free. While you are filling out your taxes, it asks if you want to upgrade to the deluxe edition with state filing for about $12.99 which is cheaper than TaxCut. You don't have to upgrade, you can just say no each time it asks. I filed my Federal tax free 2 or 3 weeks ago and e-filed free. I declined the upgrade. They notified me the next day that the IRS had accepted my e-file and I had my refund 7 days later.

Reply to
Bada

"Gary Brown" wrote

Except for an income limit of typically $54,000 and occasionally some restriction on tax forms available, there is no catch.

Go to

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and click on "freefile" on the left. Search more at the IRS site and you will find that the IRS has found it desirable to liaison with tax preparation companies to offer this service. It has been doing so since

2002. The IRS improves efficiency and apparently gets a pat on the head (from the President, Congress and you and me) for making filing easier and less expensive. The tax prep companies get some free advertising. Plus the state return prep and efiling charge is typically on the order of $10.

I used Taxact.com 's site for my return (Sch D needed). I also coached a friend through using it (Sch A needed). Both of us liked it a lot.

I think Turbotax.com's free site is nicer, but it has a stricter income limit and does not allow Schedule D.

The IRS FAQ on free file:

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8993,00.html I owed money this year but decided to use Taxact's freefile (having what I owe deducted on the date I chose before Apr.

15) because, the IRS says, my Stimulus Act rebate will now be direct deposited. There is an outside chance that early filers will also see their rebate sooner, though the IRS is not claiming this.
Reply to
Elle

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