| Looking for a way to reduce the cost of income | | | | TAX$IMPLE -- $28,000 |
| taxpreparation this year? Then you came to the right | | | | -- -- $40,000 |
| place --maybe! | | | | TaxEngine -- $9,200 |
| The IRS has launched a new program this year -- it's | | | | Only one vendor allows you to qualify if your incomeis |
| called | | | | above a certain amount. is free if yourincome is |
| "Free File", and it enables you to prepare and e-file | | | | greater than $50,000. |
| yourpersonal income tax return online for free. | | | | 2. Age -- if you are above or below a certain age,you |
| But, alas, there is no free lunch and likewise this | | | | qualify. |
| "free" program isn't really free for everyone. You | | | | TaxBrain -- age 50 or older |
| haveto meet certain eligibility requirements to take | | | | OnLineTaxes -- age 20 or younger |
| advantageof Free File, so read on! | | | | 3. State of residence -- if you happen to live inone of |
| Simply put, Free File is a new government program | | | | the following states, you qualify. |
| thatenables certain qualifying individuals to both | | | | -- Arizona, Georgia, Michiganor -- Illinois, N. Carolina, Ohio |
| prepareand e-file their income tax returns for free -- | | | | or |
| online. | | | | Georgia |
| The IRS has entered into a partnership with 17 | | | | And there's one more: lets all |
| privatetax software companies who each offer their | | | | Active Duty Military personnel file for free. |
| services tothe public at no cost. | | | | Here's a few points to keep in mind. |
| But here's the catch: not everyone qualifies, and | | | | First, you still have to prepare the returnyourself, and |
| eachof the 17 software companies has different | | | | you have to do it online at the websiteof each |
| eligibilityrequirements. | | | | software company. So, the point here isobvious: Free |
| Generally speaking, lower income people qualify, asdo | | | | File is a viable option fordo-it-yourself-ers only. |
| people of certain ages and those who live in | | | | If you're not inclined to prepare your returnyourself, |
| certainstates. | | | | Free File is not for you. |
| (Gee, sounds confusing, doesn't it? Guess that's whyit's | | | | Second, you must use the vendors web-basedtax |
| a government program.) | | | | preparation software and you also must e-file |
| There are 3 main requirements. You only have tomeet | | | | rightfrom the vendor's website. Maybe you've been |
| one of these criteria to qualify: | | | | usingone particular software for awhile -- your |
| 1. Income -- if your income is below the | | | | softwarecompany may not even be in this program, |
| followingamounts, you qualify. Take note: there are | | | | so you'llhave to learn a new program, which may not |
| severaldifferent qualifying amounts, depending on | | | | be worththe extra time. |
| thesoftware vendor. | | | | Third, and most importantly -- all this hype about |
| TurboTax -- $27,000 | | | | Free File is really a mute point if you don't qualify. |
| -- $28,000 | | | | And most middle-class and upper-class folk |
| H&R Block -- $28,000 | | | | don'tqualify. |
| TaxBrain -- $12,000 | | | | If you make more than $50,000 and happen to like |
| CompleteTax -- $33,000 | | | | TaxACT.com, you're in business. Or if you happen to |
| -- $28,000 | | | | livein one of 7 states, you're also in luck. |
| -- $30,000 | | | | Otherwise, this program is probably more for |
| -- $30,000 | | | | yourchildren than for you. |