In order to ease the process of tax return preparation and submission, IRS has provided an additional facility of filing of online tax returns (also known as e-file) to the taxpayers.

Taxpayers can file their income tax returns without paying any fees. Taxpayers have an option to use free file software or free file fillable forms available on IRS website. Taxpayers are required to electronically sign their income tax returns while filing their returns online.

E-Filing Of Tax Return With IRS

Filing Tax Return with Free File Software

It is important to note that free file software can be used for free only if the gross adjusted income of the person filing the return was $ 58,000 or less than $ 58,000 in the year for which the return is filed. Free file software is generally available with third party companies which may have their own specific norms, rules and regulations for granting a right to the taxpayer for using the software free of cost.

The list of companies offering such free file software is available on IRS website. Free file is a branded software which simplifies the process of tax return preparation and tax return submission by providing step by step guidance to the taxpayer on the process of tax return preparation and electronic filing of tax return. This software is not required to be downloaded by the taxpayer and tax return can be prepared and submitted directly from the company’s website.

Filing Tax Return with Free File Fillable Forms

Income tax returns can also be filed by using free file fillable forms. In case adjusted gross income of a taxpayer was more than $ 58,000 in the year for which the return is filed, he/she will not be able to utilize the facility of free file software (as mentioned above). Fillable forms have no such limits and can be used without paying any fees. These forms can be used by taxpayers who can manage tax return preparation on their own without any software.

These forms are similar to paper forms with a difference that with the help of these forms, tax related data can be transmitted electronically which makes preparation and filing of tax returns much easier and faster. In order to use this facility for filing electronic tax return, a taxpayer is required to visit the IRS website and select the option of fillable forms and create an online account with a username and password. This online account can also be used later on by the taxpayer for accessing tax returns already filed by him/her. However, fillable forms can be used only for filing federal tax returns and cannot be used for filing state tax returns.

Even though both the methods are available to the taxpayer for electronic return filing, it is advisable to check the eligibility for free file software as it can be used more easily in comparison to a fillable form. Moreover, free file software can be used for filing state tax returns. It is important to note that more than 70% of the taxpayers have $ 58,000 or less than $ 58,000 as adjusted gross income which makes them eligible for using the software free of cost.