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The Internal Revenue Service (IRS) has forged an alliance with various tax software companies to offer a free tax file service for lower-income taxpayers. This alliance is known as the Free File Alliance. The Free File Alliance allows individuals to prepare and file their taxes online for free. There are three basic requirements to determine whether you qualify for free electronic tax filing.
In order to qualify for the free tax file service you must meet one of these eligibility requirements.
Your 2007 adjusted gross income (AGI) must be $28.000 or less. If your adjusted gross income is more that $28.000 you may not be eligible for free electronic tax filing. Or
Any Military, Reservist, or National Guard member whose gross income (AGI) for 2007 is less than $52.000 qualifies for free online tax filing. Or If you qualify for the earned income credit (EIC) for tax year 2007 then you qualify for Free Federal Tax Preparation filing.
To use Free File you must use one of the tax filing companies that has been approved by the Internal Revenue Service (IRS). Free tax filing can only be done through a computer with an Internet connection. Paper returns are not an option with Free File. The program also offers free Federal tax filing for those who qualify. Currently there are 21 states participating in the free tax file program. The tax preparation company you choose should have a list of the 21 participating states.
