Free Tax Filing Software Companies

With just a couple of months left to file your taxes on time, what are some fast, convenient, and free options to file for taxes?

If your household makes less than $57K, which is the majority of the nation’s taxpayers, you can use the Free File program from one of the 20 participating tax companies that have partnered with the IRS listed below. After filing for your taxes, you can file your return electronically and get a refund in as fast as 10 days  if you are eligible. On the other hand, if you owe, you have  until April 15 to send in the payment, otherwise late penalties and interest may apply.  If you’re still waiting on a few things and need to file late, file for a tax extension with form 4868

The free file tax locater offered by the IRS is very simple and easy to use. It helps you find a free tax file software based on a short questionnaire that you fill out to help determine which free file tax software you should use.

Below is the list of the 20 free file tax software companies including their free file income cap, their servicing states, and indication of whether they allow for free extension.

List of Free Tax Filing Software Companies

eSmart Tax by LibertyTax Service: Free online tax return preparation and e-file if your adjusted gross income (AGI) is $57,000 or less, and you are 50 years old or younger. This federal offer is valid in all states. Free extension. En Español.

CitizenTaxFree: Free tax filing preparation and e-file if your AGI is $57,000 or less, you are age 70 or younger and you live in the following states: AL, AR, AZ, CA, CO, CT, FL, GA, IA, ID, IL, IN, MA, MD, MI, MO, NC, ND, NJ, NY, OH, OK, PA, TX, VA and WI. Free extension.

Free1040TaxReturn.com: Free filing tax return preparation and free e-file if your AGI is $57,000 or less and you are age 71 or younger and live in AK, AL, AR, AZ, CA, CO, CT, DE, HI, GA, IA, ID, IL, IN, KS, KY, LA, MA, ME, MD, MI, MN, MO, MS, NC, NE, NJ, NM, NY, OH, OK, OR, PA, RI, SC, UT, VA, WI, WV. Free extension.

ICANEFILE: Free e-file tax return preparation and e-file if your (AGI) is $32,000 or less or if you qualify for the Earned Income Tax Credit. This federal offer is valid in all states. Free extension.

1040NOW.NET: Free tax filing company return preparation and e-file if your AGI is $57,000 or less, your age is 67 years or younger and you live in AL, AR, AZ, CA, CO, CT, DC, DE, HI, GA, IA, ID, IL, IN, KS, KY, LA, MA, MD, ME, MI, MN, MO, MS, MT, NC, ND, NE, NJ, NM, NY, OH, OK, OR, PA, RI, SC, SD, TN, UT, VA, VT, WI, or WV.

OnLine Taxes at OLT.com: Online Tax Filing preparation and e-file if your AGI is $57,000 or less and age 51 or younger. This federal offer is valid in all states. Free extension.

Free TaxACT: Free federal filing tax return preparation and e-file if your AGI is $57,000 or less and you are age 19 through 55 years old. This federal offer is valid in all states. Extensions e-filed for free. Free extension.

Free Tax Return: Free federal e-file tax return preparation and e-file if your AGI is $57,000 or less and you live in the following states: AL, AZ, CA, CO, GA, IA, ID, IL, IN, KS, KY, LA, MA, MD, MI, MN, MO, NC, NJ, NY, OH, OK, OR, PA, SC, VA, WI, or WV. Free extension.

FileYourTaxes.com: Free e-file software if your AGI is $57,000 or less and you are age 15 through 52 years old. This federal offer is valid in all states. Free extension.

TaxSlayer: Tax filing free return preparation and e-file if your AGI is less than $57,000 and you are age 25 or younger, age 65 or older or active military. Also, if you qualify for the Earned Income Tax Credit or if your AGI is less than $10,000. This federal offer is valid in all states. Free extension.

FreeTaxUSA.com: Free e-filing software tax return preparation if your AGIis $57,000 or less and you live in one of the following states: AL, AZ, CA, CO, CT, GA, IA, ID, IL, IN, KS, KY, LA, MD, MI, MO, MS, NC, NE, NJ, NM, NY, OH, OK, OR, PA, SC, UT, VA, WI, or WV. Free extension.

TaxSimple Ultimate Version: Free filing software return preparation and e-file if your AGI is $57,000 or less and you are age 66 or less and you live in the following states: AL, AR, AZ, CA, CO, CT, DC, DE, HI, GA, IA, ID, IL, IN, KS, KY, LA, MA, MD, ME, MI, MN, MO, MS, MT, NC, ND, NE, NH, NJ, NM, NY, OH, OK, OR, PA, RI, SC, SD, TN, UT, VA, VT, WI, WV, or WY.

123Easytaxfiling: Free tax software return preparation and e-file if you are 70 years old or younger, your AGI is $57,000 or less and you live in one of the following states: AL, AR, AZ, CA, CO, CT, DC, DE, HI, GA, ID, IL, IN, KS, KY, LA, MA, MD, MI, MN, MO, MS, MT, NC, ND, NE, NJ, NM, NV, NY, OH, OK, OR, PA, RI, SC, UT, VA, VT, WI and, WV. Free extension.

CompleteTax: Free filing tax return preparation and e-file if your AGI is $32,000 or less. This federal offer is valid in all states. Free extension.

Online Tax Pros: Free federal online tax preparation and e-file if your AGI is between $3,500 and $57,000 and you live in the following states: AL, AR, AZ, CA, CO, CT, DE, GA, HI, IA, ID, IL, IN, KS, KY, LA, MA, MD, ME, MI, MN, MO, MS, MT, NC, ND, NE, NJ, NM, NY, OH, OK, OR, PA, RI, SC, UT, VA, VT, WI, WV. Free extension. En Español.

TurboTax® Freedom Edition: Free tax preparation software if your AGI is $31,000 or less or if you are active military with an AGI of $57,000 or less or you qualify for Earned Income Tax Credit. This federal offer is valid in all states. Free extension.

EfileTaxReturns.net: Free tax preparation software if your AGI is between $5,000 and $57,000, and you live in the following states: AL, AR, AZ, CA, CO, CT, DC, DE, GA, HI, IA, ID, IL, IN, KS, KY, LA, MA, MD, ME, MN, MO, MS, MT, NC, ND, NE, NH, NJ, NM, NY, OH, OK, OR, PA, RI, SC, SD, UT, VA, VT, WI or WV.

ezTaxReturn.com: Free online filing if your AGI is $57,000 or less and you live in the following states: AL, AR, AZ, CA, GA, IL, LA, MA, MI, MS, NC, NJ, NY, OH, PA, VA, and WI.

H&R Block’s Free File: Free federal filing online tax return preparation and free e-file if your AGI is $57,000 or less and you are age 51 or younger. This federal offer is valid in all states.

ISECURETAX, INC.: Free tax software preparation and e-file if your AGI is $57,000 or less and you live in AR, AZ, CA, CO, DE, ID, KS, MD, MI, MS, NC, NE, NY, OH or VA.

This tax advice article was brought to you by the leading direct online payday lender, Pay1Day.com

If you are having trouble paying your taxes by the deadline date of April 15, 2010, then you’re not alone.

File your taxes even if you can’t pay them

The reason is because the penalty for not filing your taxes is greater than not paying them. Funny but true: there is a possibility of imprisonment for not filing but not for being unable to pay your taxes on time – however, there may be some penalties if the IRS can prove that you intentionally did not pay your taxes.

If you file your taxes and don’t pay what you owe in full, then the IRS will send you a letter asking for what’s due including the included interest in about 45 days, helping you buy some time to come up with the money to pay for your taxes.

File for a tax extension

You can delay your tax filing deadline by six months, until October 15 by using Form 4868 electronically or by mail. This will allow you to file your taxes late but will not delay your deadline for paying your taxes – so if you are still late on your tax payments then you must still consider the interest and late penalties due. The good thing is that if you file for a tax extension then you will be charged 0.5% late fees a month, up to 25% of the balance, plus interest, instead of 5% late fees a month if you did not file for a tax extension.

Paying Some of your Taxes is Better Than Nothing

If you are unable to pay your taxes in full when you file your return, pay whatever you can to decrease late fees and interest.

Communication is important: If you are struggling and need help, call the IRS at 800-829-1040 to discuss payment options and work out a plan. In some cases, you may be able to work out a way to settle for less of the tax amount that you owe if you can prove that it will be nearly impossible to repay now or in the future.

Here’s an interesting article that can help you get back more from tax laws – take advantage of the incentive and rebate programs while they’re still here!

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If you believe you can contribute, you can see details by going to become an author page.

You Have the Right to Choose Overdraft Protection

An overdraft occurs when a customer pays for an item using a checking account that has an available balance that is less than the cost of the item.  An overdraft fee is usually around $30 and occurs at every purchasing instance where an overdraft coverage would be needed to cover the cost of the item.  For example, if a person has $50 in a checking account, attempts to purchase $100 worth of groceries, and then runs over to the mall and purchases a $20 t-shirt at one store, and then a $3 coffee at the local Coffee Bean, this person could be charged $90 worth of overdraft fees in total, if the coverage was included in his banking contract.

Overdraft protection has been put under fire because of the amount charged per occurrence combined with it’s stealth implementation without the customer’s consent.  On several accounts, customers were enrolled in overdraft protection and charged per transaction, unknowingly. In addition, when surveyed, many customers would have declined the coverage if given a choice.  Consequently, the Overdraft Fee Legislation’s objective to stop undesired overdraft protection and its associated fees by requiring explicit permission from the customer, has resulted in less overdraft protection usage.  Although this option is still there, this service should only be utilized by the customer’s choice.

Credit Card Limitations Cause Banks to Turn Customers Away

Credit card late fees occur when a customer does not make their payments on their assigned due dates.  When compounded with the existing interest rate fees, credit card associated penalties can add up.  The new Credit Act of 2009 ( Credit Card Accountability Responsibility and Disclosure Act of 2009 ) imposes caps on interest rates as well as other regulations that make imposing frivolous fees.  Because of these limitations, credit card companies have tightened up lending because of the need to reduce credit risk to risky borrowers.  Therefore, a large number of consumers with not-so-perfect credit can no longer qualify for credit cards.

In the past, customers relied on checking accounts and credit cards as two regular major sources of currency.  However, enactments such as the Overdraft Fee Legislation and Credit Act, putting limitations on policy and enumeration of interest rates and fees on banks, stifling the checkings and cards industry, customers seek alternative loans such as payday loans to replace this gap.

February 26, 2010 Los Angeles, CA.  Pay1Day.com. As new consumer protection acts decrease traditional lending opportunities, alternative loans, namely payday loans, have been on the rise, along with debate from both the consumer and lender standpoint regarding policy and practice.

Comparing to traditional loans,  payday loans costs can be attributed to the ease and speed of acquisition with minimal requirements of income, credit history, and housing, along with the resources needed to dispatch loans more easily and faster, usually under one business day.  Because of these inherent risks, payday loans are offered at a higher cost. Nonetheless, growing controversy continues as the rate of borrowers taking out payday loans increases, questioning the loan’s interest rate, fees, and policy as well as their necessity.

The usual payday loan fees are $15 – $35 per $100 borrowed within a 2 week period (the period in between pay dates) and are meant to be taken out only in real need when other alternatives are unavailable, such as borrowing from friends or using credit cards.  In addition, payday cash advances are intended to be held just in between pay periods and not throughout the year, hence its name, “payday” loans.

Payday loans are not new inventions. Big banks have increasingly extended similar types of products under names like checking advance services, with Wells Fargo offering such a product since 1994. The major difference is that payday loans, offered by independent financial institutions, are not backed by the federal reserve, offering a greater risk to the payday lender, seeking counterbalance by passing costs to the borrower.  In addition, with the above-average payment default rate in the payday industry, it becomes more clear why higher risk loans, such as payday loans, come at a raised price.

If a loan is paid in full upon the first due date, then the interest rate of this loan falls approximately between 15% – 35%. The problem occurs when the borrower is late on payments or makes a minimum payment that results in rolling over a balance to a next term because additional fees will be applied to the account which can become very costly, especially if this is made into a regular habit.

The choice to apply for and obtain a payday loan is up to the customer.  However, the duty to notify the customer of the loan’s terms and fees befalls on the lender. If the customer agrees to the lender’s upfront notice regarding rates, terms, and fees, then that results in a contract with no foul play, not different from the decision of paying the premium price tag for designer clothes or luxury automobile.   In that case, it would not be similar to a hidden overdraft protection fee or arbitrary credit card interest rate hikes.

The problem occurs when there are concealed terms and fees such as the ones resulting in the Overdraft Fee Legislation and Credit Act of 2009 that protected consumers from too-small-of-a-fine-print terms and unfair interest rate hikes. If a customer is made fully aware of their terms and fees obligations, a providing lender, whether it be a bank or a payday lender, should not be held liable for the customer’s inability to fulfill them.

February 25, 2010. The implementation of the Card Act of 2009 and the Overdraft Fee Legislation marks an increasingly shifted focus from traditional loan products to payday loan type services by big banks , observes a Bloomberg article and Solomon Finance.  Although the new reforms have made it difficult to sustain profitability from credit card and overdraft fees, two of banks’ most profitable products, questions arise whether the recent push for short term small cash loans, more commonly called checking advance products, will be successful for national banks while competing with direct payday loan lenders.

Recession Piggy Bank

Checking advance products are cash loans usually ranging from $100 – $500 with annual interest rates at about 120% if paid within 30 days.  These products are not new to big banks: Wells Fargo have had these loans as part of their offerings since 1994 and in 2008 by Fifth Third Bank.  These offerings are similar to payday loans with comparable interest rates and repayment time frames, usually occurring on the borrower’s next pay period with the added convenience of automatic payment withdrawals due to the issuance of the borrower’s account by the corresponding bank.

By getting into the payday loan business, big banks face two major issues: competition from established payday lenders with years and even decades of experience, and the real-life ability to profit from $500 loans with existing big-bank overhead.

Established payday lenders, whether it be online payday lenders or brick-and-mortar paycheck cashing stores, have gotten quick cash loans down to a customer service-oriented science where loans can be approved within seconds and cash can be delivered to the customer within hours; with an online payday loan lender, the entire process  can be done from the customer’s computer at practically any place in the world with an internet connection; in addition, the flexibility and added convenience such as faster customer support via multiple methods such as email, phone, fax, and the ability to customize loan features that stem from the smaller scale nature of payday loan lenders, presents a niche-barrier that may be difficult for national banks to overcome.

Replicating the payday loans business model while searching to fulfill the gap caused by the Overdraft Fee Legislation and Card Act of 2009, will prove to be an obstacle for traditional banks, interesting to follow throughout the rest of 2010.

According to Solomon Finance, payday loans lending may increase from the result of the new Credit Card Reforms, known as the CARD act, implemented on February 22, 2010. The new act enforces some stringent rules on credit card companies to protect consumers from ambiguous credit terms, fluctuating interest rates, and uninformed decision making. With these changes in effect, banks will focus on lending to those with near-perfect credit, possibly causing consumers with not-so-perfect credit to seek alternative types of loans such as payday loans…… for more on this story, Click here.

The new Credit Card Reforms, known as the CARD act, implemented on February 22, 2010, enforces some stringent rules on credit card companies to protect consumers from ambiguous credit terms, fluctuating interest rates, and uninformed decision making. With these changes in effect, banks will focus on lending to those with near-perfect credit, possibly causing consumers with not-so-perfect credit to seek alternative types of loans such as payday loans.

If regular consumers are finding it difficult to make ends meet in between paychecks without the ability to apply for traditional loans, they may have to turn to payday lenders who offer an easier and faster way to obtain quick cash.   This is evident in the increase in earnings by Texas-based cash loan company which had doubled their fourth quarter earnings to $33 million and another advance company who had tripled their earnings to almost $20 million.

The new credit card reforms, effective in early 2010, prohibits credit card companies from sporadically increasing high interest rates to consumers, however, it does not fully prevent other types of fees such as zero balance and inactive card fees.  Because of this, credit card companies will increasingly tighten up lending to customers, especially those with poor credit history,  to reduce lending risks, especially when charging higher interest rates to paying consumers are not an option for recouping losses.    This is why payday loans seem like an attractive alternative.

Payday loans are short term, small cash loans, usually between $100 – $1000, granted to consumers with the loan due date being the next pay date, although some payday lenders allow for due date extension.   The advantage of payday loans, relative to traditional loans, are that they are much easier to qualify for and faster to obtain with some payday lenders offering an online service where one can apply for and be approved for a payday loan online.

Traditional bank loans and credit card criteria usually require a higher credit score and clean credit history in addition to a longer employment history (usually a minimum of two years), and housing history (also a minimum of two years).  With payday cash loans, the usual requirement is employment with income enough to substantiate repayment.

Because of the ease of obtaining payday loans, they are considered high-risk loans which are reflected in larger interest rates ranging from 15% – 30% with APR ranging from 300% – 800%.  Hence, those who get payday loans are advised to pay them off during the first due date as to not incur late payment penalties or loan extension fees.

With payday loans, just as with credit card debt and other types of loans, if consumers are well-informed of the pros and cons of terms, they will be better able to make the right decisions.

With the new implementation of the credit card regulations, known as the CARD act, consumers may have to seek alternative lending such as payday loans.  When we put restrictions on banks, they can’t charge as much, the inability to profit off of high interest rates makes them take less riskier loans which means that customers who don’t have perfect credit may have to turn to alternative types of loans such as payday loans… read more about it here.