Tweet This
Ready to do your taxes on Friday the 13th? The Internal Revenue Service announced today that the Free File program, available at IRS.gov/FreeFile, opened today, Friday, January 13, 2017. Taxpayers with income below $64,000 in 2016—that’s more than 70% of taxpayers--can access free brand-name federal and state tax prep software starting today. Taxpayers with income above $64,000 can access fillable, electronic version of paper forms starting Jan. 23—the day filing season officially begins and the IRS starts accepting returns.
With Free File open now, you can get a head start on preparing your return and even complete it. The providers that offer the tax software will hold e-filed returns and transmit them to the IRS on Jan. 23. The filing deadline is Tuesday, April 18, 2017.
When can you expect your refund? The IRS anticipates issuing more than nine out of 10 refunds in less than 21 days from the time returns are received. But note that a new law requires the IRS to hold refunds for returns that contain an Earned Income Tax Credit or an Additional Child Tax Credit until Feb. 15th to ensure the claims are accurate. The IRS plans to update projected deposit dates for early EITC and ACTC filers a few days after the 15th on the IRS.gov Where’s My Refund? web page and the IRS2Go phone app. The IRS has cautioned that these refunds likely will not start arriving in bank accounts or on debit cards until the week of February 27. In any case, your best bet for a speedy refund: E-file and choose direct deposit . (In 2016, the average refund was $2,857.)
Free File really works. Since 2003, more than 49 million people have used Free File, saving more than $1.4 billion based on a conservative $30 fee estimate. “Free File is the one place where taxpayers can choose from a variety of industry leading tax software options in order to prepare and e-file their federal tax returns at absolutely no cost,” said Tim Hugo, executive director of the Free File Alliance in a news release.
All Free File providers will file your federal return, but not all will file your state return (or they may charge a fee). Start on the home page of the Free File site with the Free File Software Lookup Tool. That brings you to a page where you answer a few basic questions (age, estimated 2016 income, state of residence, whether you’re eligible for the earned income tax credit, and whether you or your spouse received military pay in 2016, and if you want to file a free state return). The Lookup tool narrows down the list of providers that match your profile and criteria. Note: Active duty military personnel with incomes of $64,000 or less may use any Free File software product of their choice.
There are 12 tax software providers participating this year: TurboTax All Free, TaxSlayer, 1040NOW.NET, TaxAct Free File, Free1040TaxReturn.com, eSmart Free File Edition, ezTaxReturn.com, FileYourTaxes.com, H&R Block’s Free File, 1040.com Free File Edition, Online Taxes at OLT.com, and FreeTaxUSA IRS Free File Edition.
Before you start, make sure you have the required tax information. You verify your identity by using your 2015 adjusted gross income, so you should have your 2015 return handy. You also need any forms W-2, 1099 and 1098 from your employer and financial institutions showing wages, interest income, and mortgage interest paid, for example. Be prepared to report your health care coverage on your return. Like last year, you have to check a box to report health care coverage, claim an exemption or report a shared responsibility payment.
