THE TRANSATLANTIC MAGAZINE
The IRS has announced that its Free File software service, a partnership with private firms which offers free tax preperation services for US taxpayers, saw a record number of new users this year.
During 2020, Free File online products have been used by more than 4.7 million individuals, a 50% increase over the 2.7 million individuals using the products last year. The IRS is also reminding taxpayers that they're able to use Free File for their 2019 tax returns, some of which are due by October 15 for those who applied for an extension.
The IRS explain that Free File is available to taxpayers "whose adjusted gross income was $69,000 or less in 2019". The IRS also note that taxpayers "whose income was higher can opt for Free File Fillable Forms, the electronic version of IRS paper forms". The service, which can be accessed via a number of different online preperation products, is also available to overseas Americans.
Responding to the record growth in users, Chuck Rettig, the IRS Commissioner, said that "The IRS has worked with our partners to make important improvements to the Free File program this year, and we are encouraged by the strong increase in usage ... The IRS remains committed to supporting and promoting this free service that benefits so many taxpayers".
The IRS also announced that "96% of the people who had no filing requirement and who registered for an Economic Impact Payment used an online tool supported by Free File Inc., the consortium representing the tax software providers who partner with the IRS." The IRS have issued an extension for non-filers to register for an Economic Impact Payment - non-filers now have until November 21 to register for the $1200 payment, click here for more details.
To find out more about Free File, go to IRS.gov/freefile. If you'd prefer to speak with a tax expert who can specifically help you with complex regulations surrounding tax for overseas Americans, check out our A-List Directory US Tax page.