Moderate-Income, Elderly Taxpayers May Qualify for Free Income Tax Preparation

The Internal Revenue Service has a free electronic filing service online.  But let's face it -- not everyone has a computer or feels comfortable using one. 

But if you meet certain criteria, the IRS will still help prepare your taxes at no charge. The agency says over 12,000 free tax preparation sites will be open nationwide this year as the IRS expands its partnerships with nonprofit and community organizations providing vital tax preparation services for low- to moderate-income and elderly taxpayers.

The IRS Volunteer Income Tax Assistance (VITA) Program offers free tax help to people who earn less than $49,000. The Tax Counseling for the Elderly (TCE) Program offers free tax help to taxpayers who are 60 and older.

What you need

To have your returns prepared under this program, taxpayers need to present the following items:

• Photo identification

• Valid Social Security cards for the taxpayer, spouse and dependents

• Birth dates for primary, secondary and dependents on the tax return

• Wage and earning statement(s) Form W-2, W-2G, 1099-R, from all employers

• Interest and dividend statements from banks (Forms 1099)

• A copy of last year's federal and state returns, if available

• Bank routing numbers and account numbers for direct deposit

• Other relevant information about income and expenses

• Total paid-for day care

• Day care provider's identifying number

To file taxes electronically on a Married Filing Jointly tax return, both spouses must be present to sign the required forms.

Trained community volunteers can help eligible taxpayers with all special credits, such as the Earned Income Tax Credit (EITC), Child Tax Credit or Credit for the Elderly. Also, many sites have language specialists to assist people with limited English skills.

How do you find one of these 12,000 locations. If you have access to a computer, go to the VITA list. If not, pick up the phone and call 1-800-906-9887.

As part of the IRS-sponsored TCE Program, AARP offers the Tax-Aide counseling program at more than 7,000 sites nationwide during the filing season. Trained and certified AARP Tax-Aide volunteer counselors help people of low-to-middle income with special attention to people age 60 and older. To locate the nearest AARP Tax-Aide site, call 1-888-227-7669 or visit AARP's Internet site.

Military assistance

The military also partners with the IRS to provide free tax assistance to military personnel and their families. The Armed Forces Tax Council (AFTC) consists of the tax program coordinators for the Army, Air Force, Navy, Marine Corps and Coast Guard.

The AFTC oversees the operation of the military tax programs worldwide, and serves as the main conduit for outreach by the IRS to military personnel and their families.

Volunteers are trained and equipped to address military specific tax issues, such as combat zone tax benefits and the effect of the EITC guidelines.

Filing your return

In addition to free tax return preparation assistance, most sites use free electronic filing. An e-filed tax return means a fast refund. Taxpayers who combine e-file and direct deposit can generally get their refunds in as few as 10 days.

Taxpayers who file electronically also can opt to file now and pay later. If taxpayers owe, they can make a payment April 18, 2011, by authorizing an electronic funds withdrawal (direct debit) from a checking or savings account, paying by credit card, by check or money order (made out to the United States Treasury) using Form 1040-V, Payment Voucher.

For taxpayers who want to prepare and e-file their own tax returns, there is IRS Free File. Everyone can use Free File, the free way to prepare and e-file federal taxes either through brand-name software or online fillable forms.

Individuals or families with 2010 adjusted gross incomes of $58,000 or less can use Free File software. Free File Fillable Forms, the electronic version of IRS paper forms, has no income restrictions. For either service, taxpayers must go through the IRS website.