THE TRANSATLANTIC MAGAZINE
Free File, the free to use e-filing solution for US Taxpayers, has been opened for the 2021 tax return season by the IRS.
The Free File system is available to all Americans with a 2020 adjusted gross income (AGI) of $72,000 or less, and overseas Americans are also eligible to use the system.
As per its name, Free File is a free service delivered by 9 software firms which form the Free File Alliance. In 2021, those firms are: 1040Now, Inc.; ezTaxReturn.com ; FileYourTaxes.com; Free Tax Returns.com; Intuit ; On-Line Taxes, Inc.; TaxAct; TaxHawk Inc; and TaxSlayer.
In 2020, the IRS took steps to strengthen Free File, and in October reported record growth in the services' useage.
The upper limit of AGI for using Free File is $72,000 this year, an increase of $3,000 over the previous limit of $69,000.
Tim Hugo, Executive Director of the Free File Alliance, explained that "If your income is $72,000 or less, Free File is there to take the guesswork out of doing your federal tax returns. "Our software offers step-by-step help to get your federal taxes done quickly, safely, securely and at absolutely no cost. In addition, active duty military personnel with incomes of $72,000 or less may use Free File software product offered by all of the tax preparation companies without regard to criteria."
Hugo added that "The Free File program has provided over 60 million returns valued at an estimated $1.8 billion in free tax software over the last 18 years, and we hope to see even more taxpayers take advantage of the service in 2021. IRS.gov/FreeFile is the one place where taxpayers can choose from a variety of the industry's most innovative and secure tax software options."
For full details on using Free File, go to irs.gov/freefile. If you'd prefer to speak to a US/UK tax expert who can assist you with filing a return as an overseas American, check out our A-List Directory.
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