Free Tax Preparation Services For Low Income – No matter whether you’re filing a simple tax return, amending previous years’ returns or owing money to the Internal Revenue Service, it is possible to qualify for free tax advice through various sources. From community-based services to free software, there are tons of resources for low-income families that help them with filing tax returns at completely free of cost.
Free tax help includes volunteer tax preparation and online counseling, popular online software, legal clinics, IRS phone lines and offices to name a few. In this comprehensive guide, we will provide you with a detailed breakdown of different free tax filing services that can be of great use to low-income families. So let’s just dive in.
Highlights of this Post
Key Takeaways
- Low-income taxpayers can access free tax filing through IRS Free File, free software, volunteer programs, and government initiatives.
- Income thresholds, age, disability status, and military service may affect eligibility.
- Bring Social Security cards, ID, income documents, expense records, health insurance documents, and tax credit documents.
- Find free tax preparation sites near you using the IRS locator tool or contacting relevant organizations.
What Are The Eligibility Criteria For Free Tax Preparation Services For Low-Income?
The eligibility criteria to get free tax preparation programs for low-income families or individuals may vary depending on the source or organization providing the service. Following are the common eligibility criteria that you need to fulfill to avail of these services:
- Income Threshold: Individuals with income below a specific percentage of the federal poverty level qualify for free tax preparation services. The income threshold may vary depending on your household size and the state of residence.
- Age: A few programs have age limitations such as being available to retirees or senior citizens.
- Disability Status: Individuals with disabilities may be prioritized and get specialized tax preparation assistance through certain programs.
- Military Service: A few programs offer free tax preparation services for veterans, military personnel and their families.
- Citizenship/ Residency Status: The eligibility criteria to avail of free tax preparation services for low-income depend on US citizenship or residency status. The availability of these services may vary depending on your region for instance a few programs may be accessible only in certain areas, counties or cities.
- The Complexity of Your Tax Situation: A few services prioritize individuals with simple tax situations while others can assist you with complex tax filings.
What Are The Documents Required To Qualify For Free Tax Preparation Services For Low-Income?
The document requirements for free tax assistance from the government for low-income families may vary depending on the organization offering the service including the complexity of your tax situation. Following is a general list of the documents that are required:
- Identification documents like a Social Security card or valid photo identification, driver’s license, passport, state ID, individual taxpayer identification number for you, your spouse and dependents.
- Income documents like 1099 forms (for additional income like interest, freelance worker dividends), W2 forms (from employers for the tax year) and documents of all sources of income like rental income, unemployment benefits or alimony.
- Expense and deduction documents such as: documentation of deductible expenses like property tax mortgage, interest from a charitable contribution and medical expenses, receipts for educational expenses like student loan interest and tuition payments and records of business-related expenses if you are self-employed.
- Health insurance documents like 1095-A, 1095-B and 1095-C are applicable to verify your health insurance coverage.
- Documents showing tax credits or deductions that you’re planning to claim like Earned Income Tax Credit, education expenses or child care expenses.
- Any notice from state tax authorities or the IRS regarding your taxes.
- Bank account details.
- A copy of the previous year’s tax returns if you’re using the same tax preparation service.
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What Are The Free Tax Preparation Services For Low-Income Families? – Sources For Free Tax Help
A partnership between a nonprofit organization named Free File Alliance and the Internal Revenue Service has led to the formation of IRS Free File. This option allows eligible individuals to access free software from different tax preparation organizations including major companies like TaxSlayer and TaxAct. While most of the Free File products are available in English, a few of them are also available in Spanish.
How Does the IRS Free File Work?
Individual taxpayers and families who have adjusted gross income less than $79,000 in 2023 are eligible for IRS-free filing for the 2024 tax filing season. However, every participating provider has its guidelines and rules for eligibility such as residency or age criteria.
Not every IRS free file comprises free tax returns so it is important to read the fine print carefully. IRS also provides everyone irrespective of their income with access to a free fillable IRS form which people need to submit electronically at no cost.
Where To Get IRS Free File?
Taxpayers can easily access the fee file program by the IRS through the IRS official website The tax extension deadline is 12th Jan 2024 through mid-October.
Accessing Free File label forms is available on the IRS website from January 29th 2024 through mid-October. You can find the form on the IRS website by visiting the Taxpayer Assistance Center or by contacting 800-829-3676. You can also find common IRS forms at your local library.
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Free Tax Software
Many tax software providers offer free tiers of tax preparation software for individuals with simple tax situations. The packages may be somewhat different from software available through the IRS Free File in case the provider participates.
The definition for a simple tax return may vary depending on the software but generally, the packages are well suited for individuals who have income from only one job and are not itemizing on their tax return. For individuals whose tax situation is a bit complex, look for other options. Examples of free online tax filing software providers are:
How Free Tax Software Works?
A lot of packages are covered from 1040 and can help people claim tax breaks like Earned Income Tax Credit and Child Tax Credit. You can get a free version of tax software from the official website of your provider. A free tier provides access to a wide array of tax forms without compromising contextual help or user experience. The type of free software that proves more beneficial for you depends on your particular tax needs.
VITA stands for Volunteer Income Tax Assistance and refers to a federal grant initiative that assists community organizations to offer free tax preparation for low or moderate-income individuals, senior citizens, disabled people and limited English speakers.
The income limitation to qualify for free tax help through Volunteer Income Tax Assistance is up to $64,000. According to the National Taxpayer Advocate Service, the VITA locations are generally open through the mid-April deadline however some sites can be operational through the October extension deadline.
How Does VITA Work?
VITA is housed under the Internal Revenue Service however the actual VITA locations where tax preparation services are offered to eligible individuals are operated by partnering organizations and local IRS-certified volunteers.
VITA tax prepaid services comprise 1040 tax returns, returns dealing with interest, income that comes from unemployment income benefits, earned income tax credits, bank, pension and retirement income.
Qualified individuals can seek help with returns that feature self-employment income from 1099 NBC or 1099 K, 1099 MISC or simple capital losses or gains. In case your tax situation is complicated the services will not be the right fit for you.
Where To Get Vita?
VITA sites are listed by the IRS website throughout the country including the operational hours, whether you need help before showing up and languages spoken. Candidates can call 800-906-98887 to get a list of local sites near them.
Irrespective of which site you are opting for you need to bring a Social Security card, government ID, ITIN documents, and relevant account statement of income for all the parties included on your tax return.
A federal grant program that enables community organizations to offer free tax preparation services on pension and retirement-associated tax issues is Tax Counseling For The Elderly.
This initiative was designed to provide free tax assistance to elderly citizens who are above in age and prioritizes this demographic; however some AARP-run sites can also help lower moderate-income tax filers who are in their 50s.
How TCE Works?
Similar to VITA, nonprofits and community organizations use TCE grant funds to offer free tax preparation services for the elderly. Trained and vetted volunteers help in completing tax preparation.
A lot of TCE sites are operated by the AARP Foundation Tax Aide Program. The services mainly focus on helping senior citizens with basic tax returns. A few Self Prep locations can allow them to file taxes on their own with the help of software alone and a volunteer available for help if required.
Where To Get TCE?
The official IRS website lists TCE across the country, language spoken, operational awards and whether you need an appointment. The IRS recommends using the AARP locator or contacting 888-227-7669 during the tax filing season which is from January through April.
Candidates who are unable to get in-person appointments at the local VITA site can also access VITA services through Getyourrefund.org.
This is a nonprofit service that was founded by Code For America in partnership with the IRS to help qualifying taxpayers get connected with IRS-certified volunteers and receive full-service tax preparation assistance virtually.
Candidates who are earning less than $66,000 annually can qualify for assistance and the tax preparation services are available in English as well as Spanish. To access VITA services through Getyourrefund.org you need to provide valid documents like a copy of your Social Security card, taxpayer identification number and other details.
Tax preparers may also help you file tax returns for previous years if they are behind. Those who are filing 2023 returns after the April deadline should start filling out their return on the official website of Getyourrefund.org by October 1 and submit them by October 8.
How Getyourrefund.org Works?
Tax documents need to be uploaded to the service and basic information has to be filed. VITA tax preparer will call you to get your information before filing your tax return.
Much like traditional in-person VITA services, a second certified preparer will look over your tax return to finalize it. The preparer will also call you to know your refund or bill amount to complete the process.
Once approved you have to sign off on the tax return online and the professional will submit your paperwork. The entire process will take nearly two to three weeks from beginning to end. The site also provides a File Myself option for many who earn below $79,000 and this option is similar to a Free File offer.
Where To Access Getyourrefund.org?
You need to visit the Getyourrefund.org website and decide whether to choose ‘For File Me Service’ or ‘Get My Refund Service’ according to your needs and situation. In case you’re not sure then you can get a Quick Q&A on the website that will help you to make a well-informed decision.
The Internal Revenue Service has made the new Direct File Service in 2024 for those who have simple tax returns. Residents of the following states are eligible to file for Free Tax Returns directly with the IRS
- Arizona
- California
- Florida
- Massachusetts
- New Hampshire
- New York
- Nevada
- South Dakota
- Tennessee
- Texas
- Washington
- Wyoming
The Direct File Service was limited by the IRS to a small group of taxpayers only to make sure the service is working properly; however, the IRS has announced the complete launch of Direct File Services on 12th March 2024 and all eligible taxpayers in these 12 states can find their tax return with the Direct File option.
How Direct File Option Works?
To participate you need to live in one of the participating U.S. states, fulfill the income limitation and claim only certain tax credits and deductions. Direct file support unemployment, W2 income, interest less than $1500, railroad retirement income and Social Security.
It supports credits such as child tax credits, credits for other dependents and earned income tax credits. It also supports educator expenses and a standard reduction in student loan interest for deductions. Direct filing helps individuals with federal tax returns and not state returns.
Where To Get Direct File?
Direct files are available through the IRS website much like free files. The services are accessible via tablet, mobile desktop or laptop and available in both English and Spanish. The IRS will make direct filing a permanent option for filing federal tax returns in the 2025 tax season following a successful filing season pilot and feedback from the partners. The direct file pilot is closed as of 21 April 2024.
The Department of Defense Program known as MillTax offers free tax software, tax help and many legal and financial resources to assist military members, their family members and veterans of certain types. The services are available from the start of the tax season through the October extension deadline.
As per the Military One source, the provider of the tax services and software are available to new, current or transitioning military service members including their spouses, reserves and survivors. Any service branches are covered including the National Guard, Army, the Navy, the Marine Corps, the Space Force and the Air Force.
How MilTax Works?
Taxpayers not only get free tax software but also free tax help from trained MilTax consultants via live chat or phone. The software is capable of solving military tax concerns like figuring out what multiple relocations mean for your taxes and reconciling comeback income. MilTax participates in the VITA program as well which means you can get face-to-face free text assistance nearby or on base.
Where To Get Miltex?
You can visit the Military OneSource official website to get the software and locate the helpline number and the hours of operation.
AARP Foundation provides in-person and online tax assistance to all people throughout the country. However, the main focus of the foundation’s Tax Aide Program is to help elderly citizens who are 50 years old and above and have low or moderate income limits.
AARP membership is not required to seek assistance from the foundation on tax preparation. The volunteer councilors of the program are certified by the IRS and can guide you with filing tax returns. The website of the program also offers an office locator service and access to online tax preparation with certified counselors.
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Community-Based Free Tax Preparation
IRS Volunteer Income Tax Assistance as well as Tax Counseling For The Elderly Programs train volunteers for preparing tax returns for taxpayers who are members of the military, senior citizens 60 years or above in age, disabled individuals, have limited English speaking capabilities or those with low income limits.
To qualify you need to have an income of less than $64,000. The programs are hosted by community partners along with IRA-certified volunteers. You can use the IRS locator tool or contact 800-906-9887 to find a VITA or TCE location.
Taxpayers can question the IRS interactive tax assistant on a variety of topics. It can decide based on input if you have to file a tax return, deduct an expense or claim dependent. The entries are not shared commerce totally associated with the particular user.
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IRS Helplines
Taxpayers with any questions can contact the IRS helpline directly at 800-829-1040. There are separate phone help numbers for nonprofit taxes, gift taxes, estate taxes, businesses, overseas scholars and exercise taxes along with the comprehensive list of topics IRS phone representatives will not address.
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IRS Tax Offices
Individuals who have tax issues that cannot be resolved over the phone or online can contact the IRS Taxpayer Assistance Center and schedule an in-person appointment. IRS offers a locator tool where you can find a local office easily near you.
An independent organization within the IRS that represents the interests of taxpayers on the whole is known as the Taxpayer Advocate Office which works to solve tax issues for low-income families that cause financial burdens for them.
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Free Legal Clinics
Many low-income taxpayer clinics are low-cost or free based on income eligibility and may help taxpayers to resolve their disputes with the IRS. These clinics provide outreach and education to speakers of English as a second language. The clinics help only when the amount in dispute is below $50,000.
You can find the nearest clinic with the locator tool provided by the IRS on their website. The income eligibility for the 2023 tax filing season was $37650 for a single taxpayer, $78,000 for a family of 4 in 48 U.S. states, the District of Columbia and Puerto Rico and $51100 for a couple.
You can also take a look at our next guide to know what free things are available for low-income families in America.
Conclusion
Free tax services provide valuable resources for low-income individuals and businesses and provide assistance to navigate the complexities of tax laws without increasing their financial burden. By providing free tax services, organizations and governments empower individuals to fulfill their tax obligations and promote financial inclusion and economic growth. In a nutshell, free tax services contribute to an accessible and equitable tax system and benefit both the society and the taxpayer as a whole. To qualify for free tax preparation services taxpayers need to have income below a specific percentage of the federal poverty level and also submit relevant documents.
Our comprehensive guide at Get Government Grants will help you to make the best decision for yourself and your family. Head over to our blog section today to improve the financial situation of your family. We are passionate about helping people find relevant answers to their questions.