Free Tax Filing and returns can be very complex, depending on the income. All the information provided to the IRS should be accurate to get a refund. Besides, the filing should be done so that the refunds are high.
You can file for returns yourself or you can take the help of a professional tax preparer. Professional tax preparers not only help in preparing the forms but also provide advice for obtaining maximum returns. There are certain forms tha have to be filled for paying taxes as well as applying for any eligible refunds. The basic form 1040 (or 1040EZ or 1040A) has to be filled by everyone, apart from any other forms. Form 1040 is meant for all kinds of incomes, if the annual income is more than $50,000. This form is also used for itemizing deductions when not applying standard deduction. 1040EZ is for single people or when married and filing jointly. The applicant should not have any dependents, should be less than 65, not blind, and taxable income (from certain sources) is less than $50,000, the earned interest is less than $400 and deductions are not itemized. Form 1040A is for people who have annual income less than $50,000 and have itemized deductions.
The forms can be obtained from the public library or IRS. After selecting the right form, prepare the return using W-2s (wage and tax settlements given by the employer), 1099s (dividend and interest forms given by banks, mutual funds and other investments), and other receipts. Attach all the required documents to the form including the payment voucher form 1040-V (if required). Make sure that you sign the form and the social security number on the form is correct.
The information required for Free Federal Tax Preparation is: wage statements (Form W-2), Pension, or retirement income (1099-Rs), Social Security card(s), driver's license(s), dependents' Social Security numbers and dates of birth, last year's tax return, information on education expenses, commissions received and/or paid, sales of stocks and/or bonds, self-employed business income and expenses, lottery and/or gambling winnings and losses, state refund amount, social security and/or unemployment income, income and expenses from rentals, Alimony paid or received, record of purchase or sale of real estate, medical and dental expenses, real estate and personal property taxes, estimated taxes or foreign taxes paid, cash and non-cash charitable donations, mortgage or home equity loan interest paid (1098), un-reimbursed employment-related expenses, job-related educational expenses and childcare expenses and provider information.
These days, returns can be filed even online, or using certain software that can be downloaded online or bought from professional agents.
Online Tax Preperation provides detailed information on Tax Preparation, Income Tax Preparation, Tax Preparation Software, Tax Return Filing Preparation and more. Tax Preparation is affiliated with IRS Tax Help.