When it's time to file your taxes, finding a free or low-cost method can be crucial. This guide will walk you through your best options and explain how tax filing works in the United States. Understanding the U.S. Tax Filing System Every year, U.S. citizens must file and pay their taxes. Despite the IRS knowing your earnings and owed taxes, they won't tell you directly. Instead, you're advised to use a private company to input your data, which these companies then use to sell you additional products. This complex system is due to tax preparation companies lobbying Congress to maintain the current convoluted tax code. However, a new initiative from the 2022 Inflation Reduction Act aims to simplify this process. The IRS has been mandated to set up a direct filing system, allowing people to file directly with the IRS starting in 2024 through a pilot program. This pilot is available to residents in certain states with straightforward returns. Here’s a list of partic...
When it's time to file your taxes, finding a free or low-cost method can be crucial. This guide will walk you through your best options and explain how tax filing works in the United States. Understanding the U.S. Tax Filing System Every year, U.S. citizens must file and pay their taxes. Despite the IRS knowing your earnings and owed taxes, they won't tell you directly. Instead, you're advised to use a private company to input your data, which these companies then use to sell you additional products. This complex system is due to tax preparation companies lobbying Congress to maintain the current convoluted tax code. However, a new initiative from the 2022 Inflation Reduction Act aims to simplify this process. The IRS has been mandated to set up a direct filing system, allowing people to file directly with the IRS starting in 2024 through a pilot program. This pilot is available to residents in certain states with straightforward returns. Here’s a list of partic...
No comments