Fed & State Income Tax E-File should be totally free--no strings attached!

[tokenlib]

This is a pet peeve that irritates the hell out of me. Both Federal and State governments want us to use E-File--because it is simpler-cheaper for them and faster. I can understand that. But this "partnership" with the private sector whereby you either have to buy software, or go through private sector companies is total CRAP!

Filing taxes should be totally free for all of us, no strings attached, no private vendor middlemen involved. We the PEOPLE should be able to interact with our government freely and directly with no hassles. Why should our most personal information--income, social security numbers, etc, have to go through the private sector to get to the government. Sure they have cut deals for free filing for "the poor"--well, it just is not good enough!

We shouldn't have to depend on a "partnership" with the private sector to pay our taxes--and I think it is a matter of principle. I'd love to see legislation that gets rid of "the middlemen." And until something is done about this--I'll file a paper return and pay for the postage. And I wish more people would do the same.

The demise of Tele-File really pissed me off too!! Screw this subsidizing of the private sector.

[napi21]

1. I agree with you, however, since this door has been opened,

and the private businesses have invested their $$ into the software, I doubt you're going to get it closed again!

You're free to protest any way you wish. I'm going to spend my $20 for the new software and file online. It checks my math, finds all the little deductions I might mot be aware of, and I've been getting my refund check in about 4 days.

I believe in protesting, but not by doing something that isn't going to make any difference to the Feds and it would ba a disadvantage to me.

[tulsakatz]

6. how do you get a refund in 4 days?

I've filed online before but if I remember correctly, it took a couple of weeks to get the refund.

[kliljedahl]

12. Direct deposit

about 6 days for me. If they mail a check it'll be two weeks.



Keith’s Barbeque Central

[napi21]

13. I select direct deposit, and it was there in 4 days!

You have to realize, all the efiled info never sees human hands. It all happens via computers somewhere, and when you select direct deposit via the efile, your bank info is available to simply complete the process all at once.

[tulsakatz]

17. that's weird..........

last year I filed online and used Direct Deposit and it still took like 10 days - 2 weeks to get the money.

Just now I checked H R Block's website and they suggest the same time.........about 2 weeks.

[ewagner]

2. There is a free registration

on the IRS site but you have to manually imput all of the data...it can't read the software like Turbo-tax or Tax-cut. We're going to file in about an hour...just putting the finishing touches on now.

Made a surprising discovery concerning the AMT (Alternative Minimum Tax)

It was a nasty little surprise. If you refininced your home and used some of the proceeds for purposes other than your home the interest on the part not related to your home is not tax deductible!

Lets say you refinanced for $200,000 but your mortgage was only $150,000 and you took the other 50K and, say, paid off 25K in credit card debt and used the other 25K to buy a boat...or car...guess what you have to break out the interest on that other 50K IS NOT DEDUCTIBLE..

that's got to be a nasty, nasty surprise for a lot of people who refinanced to get the interest deduction....whew!

[kath]

7. Just looked at the IRS Publication on mortgage interest, and it looks like

you are mistaken. In the example you gave, it would depend on the Fair Market Value of your home (not the amount of the mortgage)- if the Fair Market Value is $200,000 or more, then all of the interest would be tax deductible (no matter what the proceeds were used for). From what I can tell, a problem only arises *if the amount of the mortgage is MORE than the Fair Market Value*. Then, the inerest on the amount of the mortgage in EXCESS of the market value is deductible ONLY if it was spent on home improvement. So - as long as you're not borrowing above the value of your home, it looks like you're OK.


CAVEAT - The comments above will apply to *most* middle-income taxpayers - if you are stuck in the "Alternative Minimum Tax Trap", then I am not exactly sure what happens re: mortgage interest. So far we haven't landed in the AMT trap - thank goddess.

[ewagner]

16. We just missed the "trap"

and the AMT is what caused us to discover this.....

I should have included the caveat that this was a specific case...

my wife has a background in accounting but doesn't do taxes for others any longer so I trust her judgement.

[Connie_Corleone]

3. I liked Tele-File. It was quicker.

I did my federal taxes by e-file yesterday and it took me almost an hour because I'm still on dial-up (until I move). At least it was still free for me.

I'm still able to do state by Tele-File.

[CountAllVotes]

4. links?

I need to file and I don't want to pay some tax guy another $500 like I did this past year. Where is Tele-file? I also have a copy of TurboTax w/State too for 2005. I don't quite know where to begin. ??

:kick:

[Connie_Corleone]

18. Sorry. I was watching TV.

It's best to go through the IRS website in order to get to the free e-file sites. http://www.irs.gov

[tokenlib]

5. Tele-File was great...

Apparently some states dumped it when the Feds did(like Michigan). If some states kept it, that is a good thing.

There are free e-file offers we qualify for--so I'm not complaining because I can't do it for free. The problem I have is that there is really no reason other than subsidizing the private sector for there not to be a direct link for taxpayers to file with the IRS. There is none. Even the free file offers go through private companies.

[bluestateguy]

8. That's why I do it the old fashioned way

There is a lot to be said for the old fashioned pen, paper and postage stamp.

[papau]

9. IRS approved free efile links below using free Turbotax, etc

http://www.irs.gov/efile/article/0,,id=118986,00.html

http://www.irs.gov/app/freeFile/jsp/index.jsp

1040NOW.net Free File: Free federal online tax prep & e-file if your adjusted gross income is $50,000 or less and you live in AL, AR, AZ, CA, CO, CT, DC, DE, GA, HI, IA, ID, IN, KS, KY, LA, MD, MI, MO, MS, MT, NC, ND, NE, NJ, NM, NY, OH, OK, OR, PA, RI, SC, UT, VA, VT, WI, or WV. Extensions e-filed for free. More details

H&R Block's TaxCut: Free federal online tax prep & e-file if your adjusted gross income is $50,000 or less and you are age 50 or under. More details

FreeTaxReturns.com: Free federal online tax prep & e-file if your adjusted gross income is $50,000 or less and you live in AZ, CA, CO, CT, DE, GA, HI, IA, ID, IL, IN, KS, KY, LA, MD, MI, MO, MS, MT, NC, ND, NE, NJ, NM, NY, OH, OK, PA, RI, SC, UT, VA, VT, WI, or WV. More details

123Easytaxfiling.com: Free federal online tax prep & e-file if your adjusted gross income is $29,000 or less. More details

CompleteTax: Free federal online tax prep & e-file if your adjusted gross income is $29,000 or less. More details

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TaxEngine.com: Free federal online tax prep & e-file if your adjusted gross income is between $10,000 and $50,000. More details

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FileYourTaxes.com: Free federal online tax prep & e-file if your adjusted gross income is $50,000 or less and you live in AL, AZ, CA, CO, DE, GA, IL, KS, KY, LA, MD, MI, MO, MS, NC, NJ, NY, OH, OK, OR, WI, or you are age 18 or under. More details

ezTaxReturn.com: Free federal online tax prep & e-file return if your adjusted gross income is $50,000 or less and you are between ages 16 and 51. More details

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TaxACT.com: Free federal online tax prep & e-file if your adjusted gross income is $50,000 or less and you live in AL, AR, AZ, CA, CO, CT, DC, DE, GA, HI, IA, ID, IN, KS, KY, LA, MA, MD, ME, MI, MN, MO, MS, MT, NC, NE, ND, NH, NJ, NM, NY, OH, OK, OR, RI, SC, UT, VA, VT, WI, or WV. Extensions e-filed for free. More details

TURBOTAX® FREE FILE: Free federal online tax prep & e-file if your adjusted gross income is $28,500 or less, or eligible for EITC, or active military duty with an adjusted gross income of $50,000 or less. More details

efiletaxreturns.net: Free federal online tax prep & e-file if your adjusted gross income is $29,000 or less. More details

average1040.com: Free federal online tax prep & e-file if your adjusted gross income is $50,000 or less and you live in AZ, GA, MI, NC, or NY. More details

[shanti]

11. yeah, 50,000 or less

if you're 100 bux over that, you SOL. :mad:

[502ramjet]

10. This is the same government...

Thinking that wants us to use all-electronic voting. In both cases, if hackers can fry my computer, who knows what will happen if entire government programs are tapped.

[Sgent]

14. You can still do it by paper

but the printing and mailing costs are often more expensive than a cheap data-only (no software) efile provider.

I'm not sure how this is different than using companies like Blue Cross, Anthem, and Humana to process Medicare cliams -- including social, diagnosis, etc.

[RebelOne]

15. Check out TurboTax. 100 percent free.

I have been filing with them for a few years now.

[BushOut06]

19. 100% free? How so?

I just used TurboTax to file my taxes today. First I had to pay the $29 or whatever it was for the software. Then on top of that, it charged me $14.95 to file my taxes electronically. I could have gone with another option and had the fees taken out of my refund for another $29.