IRS Free File / e-File Help Center & Frequently Asked Questions (FAQs)

Through a public-private partnership between the IRS and the tax software industry (i.e., Free File Alliance, LLC ), you may access free commercial online tax preparation and electronic filing services through www.irs.gov. Eligible taxpayers may prepare and file their federal income tax returns using commercial online software provided by the Free File Alliance companies - not the IRS.

What benefits will these Free File services provide taxpayers?

The benefits of using these free services are identical to those of e-filing, which include:

Who is eligible for Free File?

The Free File program is limited to taxpayers with an Adjusted Gross Income (AGI) of $50,000 or less. Taxpayers who used Free File in past filing seasons might not qualify for the free services for the 2006 filing season. Each participating software company sets its own eligibility requirements.

What if I don't qualify for Free File?

If your Adjusted Gross Income (AGI) exceeds $50,000 or you determine after you start preparing your tax return with a particular company that you are not eligible for the company's free service, you have the following options:

1. Return back to the IRS' Free File homepage and review the list of companies and their services and select another company you may qualify for;
 

2. Choose a company to complete your return but take note of the fee displayed on the company's website; or

3. Visit the IRS e-fiile Partners for Individual Taxpayers web page to view additional low-cost e-file opportunities.
 

How do I get started?

From the “Free File Home – Your link to Free Online Filing” page, click the “Start Now” button. You will go to an IRS.gov web page where you may start your search for a Free File Alliance company.

How do I link to the Free File services?

Scan the listing of Free File Alliance companies on the IRS.gov page after clicking the “Start Now” button on the Free File Home page. Upon determining eligibility for a free service, link directly to the company’s web site by clicking on the company’s name. Upon doing so, you will be notified you are leaving the IRS.gov web site and entering the company’s web site. You will be located on the company’s web site and may start the process of preparing your federal income tax return. A description of a company’s service under “More details” is also on the IRS.gov free file pages.

What is the “Guide Me To A Service button”?

Alternatively, if you are having trouble choosing a company from the list, click on the button “Guide Me To A Service” to help you choose a Free File Alliance company that offers free preparation and e-filing for you.

You will be presented a short list of questions. If you are uncertain about your answers to the questions contained in Guide Me To A Service, you may want to view the complete list of companies and their services. The accuracy of the results is dependent on the accuracy of the answers you provide to the Guide Me To A Service tool.

Is the tax software preparation provided by the Free File Alliance companies?

Yes. The company's tax software prepares and e-files your federal income tax returns using proprietary processes and systems. Electronically filed returns are transmitted by the company to the IRS using secure technologies.  An acknowledgment, notifying you the return has been either accepted or rejected by IRS, is sent to you either via email from the company or available online from the company’s web site by logging into your established customer account with the company.

Where do I find details about preparing and e-filing my state tax return?

Please check for state tax return preparation and e-filing services on the Free File Alliance company’s web site. You may also visit your state tax agency’s web site for more information.
 

Is this Internet filing?

Yes. The free services are provided via the Internet. Taxpayers enter data and calculations are performed online. Completed tax returns will be sent electronically from the company to the IRS through the existing e-file system using secure telephone lines. An acknowledgment file, notifying the taxpayer the return has been accepted or rejected will be sent via e-mail from the Free File Alliance company.

How may taxpayers without home computers access free Internet filing?

The IRS continues to work with existing community-based coalitions, churches and community associations to expand computer access to taxpayers without home computers. The IRS also supports many volunteers during the filing season through Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE).

Does IRS endorse bank products such as Refund Anticipation Loans (RALs)?

No. You are under no obligation to use Refund Anticipation Loans or purchase any product from the software company (Some participating companies do not offer such services). Obtaining a fee-based product is a decision left to the individual taxpayer. If you choose to e-file you can expect to receive your refund in half the time than filing by paper, even faster with Direct Deposit. The IRS reminds taxpayers that using e-file with direct deposit can lead to receiving a refund in two weeks or less.

Security and Privacy

How is my security and privacy being protected?

Tax return preparation is accomplished using proprietary software approved by the IRS; transmittal is through the established IRS e-file system. Each Free File Alliance company must attain a third party privacy and security certification. Companies must comply with all federal rules and regulations on taxpayer privacy for paying and free customers. These rules prohibit use of tax return data for purposes not specifically authorized by the taxpayer.

What information will the IRS collect or retain from me as a result of using Free File?

The information you provide through the Guide Me to Service Button is only used to determine the free services for which you may qualify. The information is entirely anonymous and will not be retained or used for any determination of tax liability. IRS policy prohibits the use of permanent Internet cookies. In order to assist you or to identify you to make certain you are the correct recipient of information you requested, we may use "temporary" or "session" cookies. These are deleted when your Internet visit ends. No information about you is maintained as a result of a temporary or session cookie.

May a Free File Alliance company share my data with anyone besides the IRS?

No. As part of the agreement, the Free File Alliance companies must adhere to the strict privacy standards of the IRS. Only with your permission and in accordance with Treasury regulations may the company disclose your tax return information.

What oversight of the program will the IRS provide?

The IRS will monitor the progress of each of the Alliance companies. If any problems develop, the companies are required to alert the IRS. If appropriate, the IRS will remove the company from the IRS.gov web site until the problem is resolved.

Customer Service

Where do I go for Customer Service help or who may I contact if the Free File Alliance company’s software isn’t operating or computing taxes correctly, or if I need assistance navigating through the software program?

Check the Free File Alliance company’s web site for customer service options such as a help desk phone number, online assistance, or an e-mail address for technical and/or tax law assistance. Free File Alliance companies are required to display their customer service options along with associated fees, if any.

What if I need assistance with general tax law questions?

For assistance in answering your general federal income tax law questions, please refer to the link Help with Tax Questions . Use this link to ask the IRS a general tax law question related to filing tax returns---such as what to file, when to file, where to file, whom you can claim, what you can deduct, changes in tax law, etc. This site was created to answer general tax questions.

What if I want to report a technical issue about Free File to the IRS?

If you have a technical question about the IRS.gov Free File site, need assistance getting around the site or wish to report a Free File issue, please e-mail us at helpdesk@speedymail.com. We encourage you to continue working with the Free File Alliance companies to resolve any ongoing issues. If you are not able to resolve your issue with the Free File Alliance company, you may wish to try another Free File Alliance company's service.

Tax Filing Definitions

To determine eligibility for free file services, you may need access to the following information.

Age and your spouse's age (if applicable)

Use your age as of December 31, 2005.

Your Adjusted Gross Income (AGI)

Adjusted gross income is defined as gross income minus adjustments to income.  If your income (e.g., change in job) or personal circumstances (e.g., change in marital status) did not change from last year, we suggest you refer to your 2004 federal income tax return to get a quick estimate of your 2005 AGI. On your 2004 federal tax return, please refer to:

Important Reminder: If your filing status was single on your 2004 tax return and you plan to file a joint return for 2005, then make sure to add your spouse's 2004 AGI to yours when estimating your 2005 AGI.

AGI is defined as your taxable income from all sources including wages, salaries, tips, taxable interest, ordinary dividends, taxable refunds, credits, or offsets of state and local income taxes, alimony received, business income or loss, capital gains or losses, other gains or losses, taxable IRA distributions, taxable pensions and annuities, rental real estate, royalties, farm income or losses, unemployment compensation, taxable social security benefits, and other income minus specific deductions including educator expenses, the IRA deduction, student loan interest deduction, tuition and fees deduction, Archer MSA deduction, moving expenses, one-half of self-employment tax, self-employed health insurance deduction, self-employed SEP, SIMPLE, and qualified plans, penalty on early withdrawal of savings, and alimony paid by you. Do not deduct your standard or itemized deductions.

For more details, see the Instructions for Form 1040 or you may want to refer to the Form 1040.

State of Residence

Where do you live? Use the state that will be listed at the top of your federal income tax return.

Eligibility for claiming the Earned Income Tax Credit (EITC)?

The Earned Income Tax Credit (EITC) is a tax credit for certain people who work and have earned income in tax year 2005 under $37,263.   Will you qualify for the EITC this year? Tired of guessing? Don't guess. There's a lot to know about qualifying for EITC, but the most important thing to know is you can get help figuring it all out. The EITC Assistant is a convenient way for you to find out if you are likely to qualify for the EITC tax credit by answering questions online, about yourself, your children, your living situation, and your income.

For additional information about the Earned Income Tax Credit (EITC) search IRS.gov for EITC Questions and Answers. 

Military Status

All active armed forces, federal reservist and National Guard personnel are eligible for Free Filing. Veterans and retirees are not automatically eligible. You or your spouse must have a 2005 Form W2, Wage and Tax Statement from one of the military services.

About the Free File Alliance

What is the Free File Tax Agreement?

On October 30, 2002, a public-private partnership agreement was officially signed between the IRS and the Free File Alliance, LLC , a group of tax software companies. The IRS entered into a three-year agreement with a group of private computer-software companies to provide free electronic filing for at least 60 percent of all taxpayers who file an individual tax return.

On October 29, 2005, the IRS and the Free File Alliance reached a new four-year agreement to continue the Free File program. The new agreement contains important consumer protections and seeks to focus services on those taxpayers most in need. The agreement calls for services to be provided to 70 percent of the nation’s taxpayers.  The 70 percent equates to taxpayers with an AGI of $50,000 or less. The AGI level likely will change annually.

Why was the Free File Alliance formed?

In November of 2001, the Office of Management and Budget's (OMB) Quicksilver Task Force established 24 e-government initiatives that were a part of the President's Management Agenda. These initiatives were designed to improve Government to Government, Government to Business, and Government to Citizen electronic capabilities.

One initiative, IRS Free File, instructed the IRS to provide free and secure online tax return preparation and filing services to taxpayers. In accordance with this OMB directive, the IRS began working in partnership with the tax software industry to develop a solution. The result was the formation of the Free File Alliance, LLC , a group of tax software companies who provide free commercial online tax preparation and electronic filing services.

What are the objectives of the Free File agreement?

Why is the government doing this through a partnership with private industry rather than providing its own software free to the public?

The government believes private industry, given its established expertise and experience in the field of electronic tax preparation, has a proven track record in providing the best technology and services available. Additionally, Treasury has indicated it does not want the IRS to enter into the tax software business. The Government believes a partnership with private industry will: provide taxpayers with higher quality services by using the existing expertise of the private sector; maximize consumer choice; promote competition within the marketplace; and meet objectives in the least costly manner to taxpayers.

Some private sector firms have offered free e-filing to select taxpayer groups for several years; how is this approach different?

This approach offers a multi-year agreement between the IRS and the Free File Alliance to provide free service(s) to more taxpayers. Previously, free offerings were not consistently available and were subject to modification or discontinuation from year to year.

Taxpayers have easier access to the Free File web page (hosted on irs.gov), which provides a listing of all free offerings in a single location.

Free File Alliance companies offer both free preparation and e-filing services. There is no cost to qualifying taxpayers. Previously, some companies charged for preparation (filling of forms and tax calculations) while offering the transmission free, or provided the preparation free while charging for transmission, or some variation thereof. Under the Agreement, both are free to eligible taxpayers.

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