IRS offers help filing taxes online
By Kim Komando
Gather your receipts and W-2s because it's tax time. If you plan to use an online tax service, forget about pencils and a calculator because all of the forms and calculations are completed for you. Best of all, online filing is free.
For information, check www.hawaii.gov/tax/tax.html. For information for other states, go to www.irs.gov/efile/article
To encourage taxpayers to file electronically, the Internal Revenue Service, in conjunction with commercial tax preparation software companies, offers free e-filing for individuals who meet certain age, income, residency and other requirements.
Tax help
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To begin, you'll need an Internet connection and the necessary documentation (W-2s, 1099s, receipts, etc.). Then go to the IRS' Free File site (www.irs.gov/efile/article/0,,id=118986,00.html) and click the Start Now button. This leads you to a list of Web sites providing free e-filing services. Click "more details" for information on individual sites' qualification requirements. It also includes pricing information if you don't qualify.
You don't have to read the requirements of each site. Instead, click Guide Me to a Service, which brings up a form that asks about age, adjusted gross income, state of residence and other questions. With that information, the IRS directs you to sites for which you qualify.
This year, several sites, including H&R Block, have opened free e-filing to all taxpayers. TaxACT and TurboTax, which are tax preparation programs, are also providing free e-filing with no restrictions.
Regardless of the service you choose, you must begin with the link on the IRS' Web site. If you go directly to a company's Web site, you will pay for the service.
Many sites offer different tiers of service. Generally, the free e-filing gives you access to a basic level. This usually includes access to forms and technical support through e-mail.
If you've never used tax preparation software, you may be in for a shock. Instead of filling out an online version of the 1040, the sites conduct an online interview. The interviews include easy-to-understand, but detailed, questions about income, interest earned, stock options, real-estate holdings and so on.
The programs do a good job of holding your hand. But if you're used to zipping through the forms, you may find the numerous questions tedious and repetitive. If you get tired or bored, you can stop at any time and return later.
If you used an online tax preparation site last year, you might be able to import last year's income tax information into this year's forms. But you'll have to use the same site you used the previous year.
Sites may urge you to upgrade to a higher tier of service. You are under no obligation to do so, but it might be helpful.
For example, H&R Block's premium online tax program includes free 24-hour technical support, access to an interactive video library, a free phone or e-mail session with a tax adviser, and other tools.
Most sites will file your state tax forms electronically for a fee. The cost varies from $6 to $20. Every state's procedure is a bit different.
