The IRS has a tool called Free-File that allows some taxpayers to prepare and file their return for free during the 2024 tax season. This tool is available to more people this year and can be accessed on the IRS website. Free-File is a partnership between the IRS and Free File Inc. that allows eight providers to prepare tax returns online using step-by-step software. One of the providers, ezTaxReturn.com, is offering the option to prepare tax returns in Spanish this year.
The Earned Income Tax Credit (EITC) can generate a refund for eligible taxpayers who do not have a tax debt with the IRS. This tax season, the credit can reach up to $7,430 for some taxpayers. Additionally, the child tax credit and its refund are important aspects of the 2024 tax returns.
The Free-File tool can be used by taxpayers with an adjusted gross income (AGI) of $79,000 or less in 2023. AGI is the number that results when adjustments are subtracted from your income, such as interest paid on a student loan or contributions to a retirement account. The tool was previously available to fewer people due to a lower income limit of $73,000.
The Free-File tool is available now, and eligible individuals can prepare their tax returns. The provider will retain them until January 29, when the IRS will begin processing 2024 tax returns. The Free-File tool can be accessed in Spanish, where users can evaluate different providers and answer questions to determine eligibility for tax credits. Some providers within Free-File also offer free state tax preparation, while others may charge a commission.
It is important to carefully read the information provided by each company before choosing a provider. Tax brackets and how much you will be charged are important aspects to understand when filing your taxes with the IRS.
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