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Free File Software -- Theoretical Question

This year, as usual, I filled out paper forms for my income tax. Just for curiosity I looked at the Free File software via the IRS site. I noticed that many of the choices were restricted to states of residence, income, and age.

Maximum income I understand -- let those people pay. But why, minimum income limits? Place of residence I understand, because sales tax deductions might be set up only of some states; foreign addresses I understand as the necessary forms for foreign taxes might not be there.

But why age limits?

Reply to
Lawrence Israel
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Please provide more links or details. I just spent a few minutes reviewing several IRS links related to free file and only found the maximum income restriction.

Regarding age, if someone is under age 16 and has never filed before, I believe there are some general restrictions on efiling, not related to free-file, but I haven't looked them up.

Reply to
Mark Bole

I didn't see age limits, only income maximum. That is because the government is falling for the private tax software companies demands that they be allowed a special nitch to operate in. Same reason the IRS fill in forms do not do simple math.

Reply to
Pico Rico

The IRS does not provide the Free File options, private businesses do. The tax prep industry reached an agreement with the IRS to provide free filing to certain taxpayers in exchange for the IRS not instituting its own free-filing service. Beyond the minimum requirements in the agreement, the companies are free to set their own restrictions on who may qualify for free filing.

Thus, some companies set stricter requirements than others to limit the number of people using their services and thus their expenses. The reason for the age limit might be that senior citizens can be directed to the IRS's free filing program (VITA) for them, with returns prepared by trained volunteers.

I'd have to guess at the reason for minimum income limits. A child with investment income over $1,000 creates complications for the parents' return, and the parents may not be eligible for free filing. Of course, if income is below certain levels, no return is required in many cases.

Reply to
D.F. Manno

For Mark Bole who wanted the links:

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Reply to
Lawrence Israel

Thanx, that link didn't work (something about a problem with session cookies that I've never seen before), but I got through by truncating the link:

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Hmm, the extra restrictions are odd, but as previously mentioned, each company gets to set its own rules. I tried one of the links (H&R Block) where they limit age to 52 and under, but even their vendor FAQ does not explain why.

Reply to
Mark Bole

The restrictions for Tax Simple make sense - they only let you create a free federal return if you live in a state where they can sell you a paid state return.

Don EA in Upstate NY

Reply to
Don Priebe

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