Early Bird Special! $20 off for 1040 tax returns prepared and filed by March 15
$10 off for 1040 returns prepared and filed between March 16 and 31
Special Rates (no schedules except B, no credits, no deductions) One W-2, 1099-R or -SSA: $20 off
One W-2 and a no-dependent EITC: $10 off
Two or three W-2, 1099-R, -SSA, -Int, or -Div, with no EITC: $10 off
All specials apply to Form 1040 (personal) returns only. If you're comfortable using a browser, file your Federal return for free via members of the Free File Alliance.
IRS and State: Go to the
IRS Free File web site, click on the [Start Free File Now] button, and fully read the information there, especially the information about fees for filing state tax returns. Choosing a vendor who states "Free for any state if you qualify for federal" will help ensure the filing is completely free. Then click on the chosen vendor and start the tax preparation process on their site.
New Mexico only: If you only need to file in New Mexico, you can do so for free at the
New Mexico Taxpayer Access Point.
General: Free filing is done completely online. Make sure to print and keep detailed copies of the tax returns and supporting data for your records, and keep your W-2, 1099, and other forms used to prepare the return. Most free filing vendors delete the online copies of the returns after a few months or a year. To be safe, keep your copy of the return and forms for 10 years.
WARNING! Make sure to only use the IRS Free File site above. If you do a Google or Bing search for free filing, you may get directed to a site that will steal your identity. BE SAFE!
Getting the biggest refund and paying the lowest amount of tax allowed by law. Starting with the 2018 tax year, many old deductions have been removed or limited by the Tax Cuts and Jobs Act (TCJA). If you are filing a 2016 or 2017 return, these are still available, but not for 2018 or later.
- Adoption Credit
- American Opportunity Tax Credit (AOTC) and Lifetime Learning Credit
- Child Care Credit
- Earned Income Credit (EIC)
- Energy Credits
- Foreign Earned Income Credit (FEIC) and Foreign Tax Credit
- Itemized Deductions (Schedule A) for expenses such as: medical, charitable, property taxes and other state taxes paid (limited by TCJA), mortgage interest and points (limited by TCJA). Also looking for work, investing, work tools, supplies and uniforms, and theft losses (eliminated by TCJA).
- Retirement Savings Credit
- Other deductions: moving expenses (limited by TCJA), educator expenses, HSA contributions, SEP/SIMPLE/IRA contributions, self-employed health insurance, alimony paid (eliminated by TCJA), student loan interest paid, tuition and fees paid
IRS TAX TIP 2012-71: Managing Your Tax Records After You Have Filed
Keeping good records after you file your taxes is a good idea, as they will help you with documentation and substantiation if the IRS selects your return for an audit. Here are five tips from the IRS about keeping good records.
- Normally, tax records should be kept for three years.
- Some documents – such as records relating to a home purchase or sale, stock transactions, IRA and business or rental property – should be kept longer.
- In most cases, the IRS does not require you to keep records in any special manner. Generally speaking, however, you should keep any and all documents that may have an impact on your federal tax return.
- Records you should keep include bills, credit card and other receipts, invoices, mileage logs, canceled, imaged or substitute checks, proofs of payment, and any other records to support deductions or credits you claim on your return.
- For more information on what kinds of records to keep, see IRS Publication 552, Recordkeeping for Individuals.
Basis. The basis of an asset is its cost, including shipping, installation, taxes, and fees. For example, if you buy a home, the basis of the home is the amount you paid for it (including down payment and loan). If you buy a computer, its basis is the amount you paid for the computer, tax, and shipping. If you buy an extended warranty on the computer, it is not part of the basis, but that's a discussion for another day.
Adjusted Basis. The adjusted basis of an asset is its cost, plus improvements, minus reductions in value. Improvements include such items as adding a new room to a house, putting on a new roof, converting a basement, or putting in new wall-to-wall carpet. Reductions in value include removals from the asset (for example, a standalone garage may degrade to the point it needs to be torn down). Normal repairs and maintenance do not increase basis.
For assets used in a business, adjusted basis includes
depreciation, a calculated loss of value over the years due to wear-and-tear on the asset. The IRS prescribes the depreciation amounts that are used to calculate this loss in value.
Adjusted basis is used to determine capital gains and losses, which directly affects the amount of tax that you pay when an asset is sold. See our
white paper on basis for more information.