SEATTLE — The Internal Revenue Service and the Free File Alliance announced Jan. 16 the launch of Free File, which makes brand-name tax software products and electronic filing available to most taxpayers in Washington.
Free File software can help taxpayers with tax preparation, including the health care law that will affect almost everyone. Washington taxpayers can use Free File software immediately but e-filed returns will not be transmitted to the IRS until Jan. 20, when the filing season officially begins.
Free File is available only at IRS.gov/FreeFile, thanks to a partnership between the IRS and the Free File Alliance, a consortium of 14 leading tax software companies.
“About 70 percent of all federal tax returns come in below the $60,000 income level,” says IRS Spokesman David Tucker II. “Millions can use it to file a federal income tax return for free.”
Nationally, more than 3.2 million people used Free File last year with nearly 76,000 coming from Washington.
Since 2003, more than 43 million people have used Free File, saving $1.3 billion based on a conservative $30-free estimate.
“You don’t have to be an expert on taxes or the new health care law. Free File software can help walk you through the rules and help you get it right,” said John A. Koskinen, IRS Commissioner. “For 12 years, this partnership between the IRS and the Free File Alliance had helped taxpayers save both money and time. The real winner in this partnership has been the nation’s taxpayers.”
Taxpayers who earned $60,000 or less last year are eligible to choose from among 14 software products. For those who earned more, they are still eligible for Free File Fillable Forms, the electronic version of IRS paper forms. This more basic Free File option, which is best for people comfortable preparing their own tax return, Free File offers easy-to-use products that ask questions and supplies answers. The software will find the right forms, find the right tax credits and deductions and even do the math.
Free File also can help taxpayers with the new health care requirements. Almost everyone will need to do something new when filing a tax return this year. For each month in 2014, you and everyone on your return
• Report health care coverage, or
• Claim an exemption from coverage or
• Make a shared responsibility payment with your tax return.
Most people will simply have to check a box to report health care coverage for the entire year.
Free File will be available through October 2015. Taxpayers who cannot meet the April 15 tax deadline can also use Free File to file a six-month extension.
Here are some common tax-related documents you will need to complete your tax return.
Remember, individuals must also have documentation of any credit or deduction you are claiming as well:
• A copy of last year’s tax return;
• Valid Social Security numbers for yourself, spouse and children;
• All income statements, i.e. W-2 forms, from all employers;
• Interest/dividend statements, i.e. 1099 forms;
• Form 1099-G showing any state refunds;
• Unemployment compensation amount, if any;
• Form 1095-A if you purchased coverage from a Health Insurance Marketplace;
• Proof of health care insurance coverage for you and everyone on your return.
