IRS Free File can help those with no reporting requirements find overlooked tax credits and get a refund –
WASHINGTON – The Internal Revenue Service on Thursday, April 14, urged low-to-moderate income individuals and families, especially those who do not normally file taxes, to use IRS Free File to prepare their own federal income tax return, file it electronically and get a refund by direct deposit, all for free. The tax software walks people through each section of their tax return using a question-and-answer format. Filing a federal return is safe, easy, and free.
People who have not earned enough money to compel them to file a return may mistakenly assume that since they owe no tax, they are not entitled to a refund. They may, however, be eligible for the Earned Income Tax Credit, Child Tax Credit, Child and Dependent Care Credit, Premium Tax Credit, or Rebate Credit. 2021 recovery. These credits are refundable and may give rise to a refund, even if the individual owes no income tax. More information on these credits is available in FS-2022-10 (visit https://www.irs.gov/newsroom/irs-expanded-credits-for-families-highlight-tax-changes-for-2021-many-people-who-dont-normally-file-should-file-this- year).
This year, the deadline for filing federal income tax returns for individuals is April 18. The only way to get a refund is to file a tax return. Taxpayers can use e-filing options, including the IRS Free File available at IRS.gov until Oct. 17 to prepare and file returns electronically.
IRS Free File provides free access to leading tax software to anyone with an Adjusted Gross Income (AGI) of $73,000 or less.
Available only on IRS.gov, IRS Free File offers low-to-moderate income families homeless people, students who are now single or who may have only worked part-time and others a quick way and easy to access these benefits. Anyone can use IRS Free File by accessing a computer or similar device. No computer? No problem. IRS Free File products also support mobile phone access.
Eligible individuals who did not receive a third round of the Economic Impact Payment or who received less than the full amount can claim the recovery rebate credit when they file their 2021 tax return. More information at the application for the 2021 recovery rebate credit can be found on IRS.gov.
And that’s where IRS Free File comes in. It’s a free way to claim the full amount of tax benefits and ensure eligible people get their money back. Look for an IRS Free File product with no “minimum income”, file electronically and choose direct deposit.
Through IRS Free File, leading tax software vendors are making their products available online for free as part of a 20-year partnership with the IRS. There are eight software products in English and two in Spanish. To visit IRS.gov/FreeFile for more details. Additionally, MilTax, available free through the Department of Defense, offers a similar online tax preparation service to members of the military.
Because IRS Free File returns are filed electronically, the service gives everyone a great way to get their money fast. This is especially true for anyone who chooses to have their refund deposited directly into a savings or checking account.
Don’t have a bank account to directly deposit a refund? Visit the FDIC website or the National Credit Union Administration using their Credit Union Locator Tool to find out where to find a bank or credit union to open an account online. Veterans can view the Veterans Benefits Banking Program (VBBP) to access financial services at participating banks. Many reloadable prepaid cards have account and routing numbers that can be provided to the IRS for direct deposit. People must verify that their card can be used to have their refund applied to the card and to obtain the routing number and account number, which may be different from the card number.
The IRS urges everyone to consider taking advantage of the speed and convenience of IRS Free File. This includes:
- Homeless people. As long as they aren’t dependent on someone, chances are they’ll still qualify for the recovery rebate credit even if they have little or no income. They can still use Free File even if their only internet access is through a smartphone. Look for an IRS Free File product with no “minimum income”. (People experiencing homelessness can list the address of a trusted friend, relative, or service provider, such as a shelter, drop-in center, or transitional housing program, on the tax return).
- Families who had a baby or adopted a child in 2021 or who added a dependent – including a parent, nephew or niece or grandchild – on their 2021 tax return who was not listed as a dependent on their 2020 tax return may not have received a stimulus payment for that eligible child or dependent. They may be eligible to claim a 2021 recovery rebate credit and must file a 2021 tax return to claim a credit of up to $1,400.
- All eligible parents of eligible children born or fostered through adoption or foster care in 2021 are also encouraged to claim the Child Tax Credit – worth up to $3,600 per child born in 2021 – on their 2021 tax return.
- Low-to-moderate income workers and working families who do not normally file a return may miss certain credits for individuals, including the EITC, Child Tax Credit, Child and Dependent Credit, premium tax credit if they do not. case.
In order to validate and successfully submit an electronically filed tax return to the IRS, taxpayers need their Adjusted Gross Income, or AGI, from their most recent tax return. For those who are waiting for their 2020 tax return to be processed, here is a special tip to ensure the tax return is accepted by the IRS for processing. Be sure to enter $0 (zero dollars) for last year’s AGI on the 2021 tax return. For those who used a non-filer tool in 2021 to register for a credit withholding tax for children or a third economic impact payment in 2021, they must enter $1 as their AGI from the previous year. All others must enter their previous year’s AGI from last year’s return. Remember that if you are using the same tax preparation software as last year, this field will auto-populate.
For those not comfortable filing their own tax return, IRS-trained community volunteers provide tax assistance at more than 11,000 tax assistance locations nationwide. To find the nearest site, visit IRS.gov/Volunteersor call 800-906-9887.