Filing your Taxes for Free
I filed my taxes last week, as soon as I got all my relevant paperwork in the mail. I’m one of those people that hates having things drawn out over a long period of time, so as soon as I can get it over with I file my taxes and can ignore all the chatter that will come in the next few months.
[update: I got my rebate direct deposited into my ING account on Wednesday, January 30]
I am done with it and for the first time it didn’t cost me a cent.
In the past I have used H&R Block’s online tax preparation software and I’ve been happy with it, despite some negative reviews I’ve seen around the web for it. Last year was my first year filing here in Chicago so I wasn’t eligible to file for free through the state website. But the way H&R Block works is that they offer to do your federal return for free, then once they have all your information they tell you that you are one click away from filing your state taxes too, and that it will only cost you $30 or whatever it costs.
But last week I was reading some blogger’s opinions on the best ways to file your taxes and many of them were saying negative things about H&R Block. I was surprised: I had never had a problem with them.
So I ignored their advice and went straight to their website. After all, they already have my information from last year so it makes it even easier, right?
Everything went smoothly until I got to my Roth IRA contributions, which are really a formality since it doesn’t affect my taxes in any way. For some reason they calculated I had gone over the $4,000 contribution limit for the year, which was wrong. I went back and retyped all the numbers and still the same error occurred. This took my rebate down from $750 to $680.
The only option I had was to print the paperwork and then attach a document saying there was a mistake. I didn’t want to go through that hassle so I logged out and tried again: no dice. I was starting to get a little angry, so I closed H&R and said the hell with it.
Here is what I think you should do if your taxes are simple enough to file yourself:
- Go to the IRS’s E-File page. Here they will walk you through the process of finding a company that will file your federal taxes for free. There are plenty of options so it shouldn’t be a problem. You’ll see H&R Block on there—ignore them. My recommendation? I went with Eztaxreturn.com, which works in AL, AZ, CA, GA, IL, LA, MA, MI, MS, NC, NJ, NY, OH, PA, VA, and WI. The only catch is that you must make less than $54,000 (aren’t I lucky?). All the different companies listed have certain conditions so make sure you read the fine print. Only those who make less than $54,000 can file for free.
- File your Federal Return for Free. Don’t file your state return with whichever company you chose. You’ll do that later. Enter all the numbers you are supposed to enter. Take your time and make sure you get it all right. Don’t try to rush through it like I did because it can stress you out and cause you to make mistakes. You don’t want the IRS coming after you. When they ask if you want to file your state return right away (“Just one click away!”) be like “Hellz no.”
- Find your EZ-File Card. I’m not sure if it works in other states but I think it’s similar: you should have gotten a card in the mail with your ID number that will allow you to file your state return for free directly through your state’s website. Use the number on this card to get access to the state’s IRS site and file your state return for free.
- Have your return direct deposited. It’s faster and saves paper. It took less than a week for my return to show up in my ING Account.
One more thing, I think you have to have filed your taxes once before in the state you currently live in to be eligible for the free state return. So if you didn’t file for taxes in your current state last year you probably won’t get a card and may have to pay for it.
* And, obviously, don’t go spending that return on silly stuff. Put it into your savings account or put it towards your financial goals.
