A:

Free File is a way for taxpayers to prepare and file their federal taxes online for free. The service is available to individuals with adjusted gross incomes below a certain level - $56,000 in 2008. Firms that offer the service are part of the Free File Alliance, in partnership with the Internal Revenue Service (IRS). An easy way to find these free file fillable tax forms is to choose a company directly through the IRS Free File web page.

Select a company according to:

Once you have selected a company, you will be taken to the company's website so that you can start filling out the free tax return.

It is important to note that you will need to create a new account with the selected company. This will allow you to save your work as you go. After this step, you can start filling out your personal income information. Once this is complete, you may electronically file, or "e-file", the return. You will have the option of printing your return but usually only after filing. (Mastering these fundamentals now will take the stress out of tax season, learn more in Next Season, File Taxes On Your Own.)

Why Online?
By filing online, you could receive your return in as little as 10 days, compared to the approximate six to eight weeks for those who file traditional paper returns. In addition, it is generally faster to complete the forms the forms online. (You have the control to determine whether you owe in April. Learn more in How To Owe Nothing On Your Federal Tax Return.)

Hot Definitions
  1. Market Capitalization

    The total dollar market value of all of a company's outstanding shares. Market capitalization is calculated by multiplying ...
  2. Expense Ratio

    A measure of what it costs an investment company to operate a mutual fund. An expense ratio is determined through an annual ...
  3. Mezzanine Financing

    A hybrid of debt and equity financing that is typically used to finance the expansion of existing companies. Mezzanine financing ...
  4. Long Run

    A period of time in which all factors of production and costs are variable. In the long run, firms are able to adjust all ...
  5. Quasi Contract

    A legal agreement created by the courts between two parties who did not have a previous obligation to each other. A normal ...
  6. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
Trading Center