If you are one of the many people who will be filing federal taxes for the first time this year, IRS Free File may be the perfect match, especially if you are looking to save money on tax preparation.
Most Free File users are under the age of 30 with modest incomes. The Free File adjusted gross income limit for 2020 is $69,000. If you want to do your own taxes, Free File means free tax preparation, free electronic filing and free direct deposit, which is the fastest way to get a refund.
Free File features 10 brand-name tax software providers who are in a partnership with the IRS to offer their online products for free. Each provider sets additional eligibility requirements, generally based on age, state residency and income.
Taxpayers using Free File software for the first time will need a few things before starting. You will need:
•Your Social Security number.
•Your wage and income information. This is usually found on forms from your employer such as Form W-2 and Form 1099.
•Make sure your parents are not claiming you as a dependent. If your parents are claiming you as a dependent you may still file a separate tax return, but make sure you indicate you are a dependent on another person’s return.
•Documentation for all tax credits and deductions. You should remember that the standard deduction has been greatly increased so that itemizing deductions may not be necessary
•Prior-year adjusted gross income. This is required for all electronic tax returns as part of the user’s electronic signature. First-time filers over the age of 16 can simply enter “0” as your prior-year income for signature purposes. If you have filed before, your prior-year tax return will show your adjusted gross income.
•Your bank account and routing number. Most people receive a tax refund. This is the fastest way to get your money; through direct deposit to a financial account.