Tax season 2022: how to declare your taxes online in 2022

For most Americans, Tax Day 2022 will arrive on April 18. If recent history is any indication, all but a small percentage will file their returns electronically.

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tax season is on. The IRS began accepting and processing federal tax returns for the last tax year on January 24. By April 18, which is the filing deadline for most Americans, almost all taxpayers submit their taxes electronically.

When it comes to e-filing, also known as online filing, there seem to be as many options for getting the job done as there are forms to fill out. The online filing option that’s right for you may depend on your income, budget, the complexity of your return, and perhaps your patience with filling out forms. Here is an overview of the options, including IRS Free File and TurboTaxit should work for just about every type of taxpayer.


IRS Free File

How to declare your taxes online for free in 2022?

IRS.gov (screenshot)


In 2020, a US surveillance agency find that less than 3% of the 104 million U.S. taxpayers who could have filed returns online for free via IRS Free File benefited from the program. Don’t leave free services on the table this year. If you are looking to file your federal return electronically, you may want to do IRS Free File your first stop. As noted by CBS News, the IRS-backed program is the “only safe way” file a free federal return.

This year, IRS Free File is open to all US taxpayers whose adjusted gross income in 2021 was $73,000 or less. And it doesn’t matter if you’re reporting unemployment income or capital gains: if you meet the program’s income eligibility requirements, then IRS Free File will find you an online service that will do your tax calculations, the so-called “simple” answer. questions and submit your feedback – all for free.

An important note: the IRS said some of its IRS Free File partners may have income thresholds below $73,000. But the office promises it will get at least one match for everyone who won up to $73,000. What if you are an active duty soldier? Then, provided your income is $73,000 or less, all IRS Free File programs will be open to you. For the 2022 tax season, eight businesses are participating in IRS Free File, including some names you may recognize, such as TaxAct and tax killer.

The easiest way to see what is available to you through IRS Free File is to go to the IRS website. Enter your age, state of residence, adjusted gross income, and a few other details. The system will show you which of its tax preparation partners are right for you. Some of the affiliate providers will even do status returns for free.


TurboTax

TurboTax

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from Intuit TurboTax is the tax preparation giant, marking 73% of sales during last year’s peak fiscal season, according to data analytics firm Bloomberg Second Measure. Its services are basically divided into two areas: online do-it-yourself taxes; and taxes online with tax assistance.

In the do-it-yourself bucket, you can file a federal return electronically for $0 through its “Free Edition” service – provided, that is, the only form you need to file is either a 1040. If you have itemized deductions, hours, or unemployment income (as shown on a 1099-G), then you’ll likely need at least the “Deluxe” tier of TurboTax, currently offered for $39 ( regular price of $59).

The other TurboTax packages are “Premier” ($69, currently reduced from $89) and “Self-Employed” ($89, currently reduced from $119). As the name suggests, “Self-Employed” is recommended for those reporting self-employment income and expenses. All DIY levels, starting with “Deluxe”, incur additional fees for electronic filing of state tax returns.

If you want a more guided experience, TurboTax offers its “Basic”, “Deluxe”, “Premier” and “Self-Employed” levels with either access to a tax professional who will give you advice (the cheapest option, called TurboTax Live ), or a tax professional who will take care of your taxes directly (the most expensive option, called TurboTax Live Full Service).

If you file one of these super simple, 1040-only returns, you can get the TurboTax “Basic” package for free in any of its forms, from DIY to TurboTax Live Full Service. Note: The $0 offer for TurboTax Live Full Service is alone for returns filed before February 15.

All TurboTax packages, including “Deluxe”, “Premier”, and “Self-Employed”, are billed as “start for free”, which seems to mean that no money is paid upfront. (“Only pay when you deposit,” the site says.)

TurboTax file your own taxes, $0 to $89


H&R block

H&R block

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H&R block offers four online deposit options. They are called “Free Online“, “Deluxe”, “Premium” and “Self-Employed”.

“Free Online”, which is billed as costing $0, is for those with super simple returns, such as W-2 income only. Unlike TurboTax, H&R Block’s no-fee tier also works for people with unemployment income. The H&R Block site says the cost of a status rollback at this level is also $0.

For those with itemized deductions, Health Savings Account (HSA), and/or real estate deductions, H&R Block customers will want to look at the “Deluxe” tier and above. Live technical support is included in the “Deluxe”, “Premium” and “Self-Employed” plans; all three are also on sale now. Like TurboTax, H&R Block bills all of its compensation packages as “start free.”

H&R Block, from $0 to $85


TaxAct

TaxAct

TaxAct (screenshot)


After TurboTax and H&R Block, TaxAct is the largest tax preparation software service. Of the Big Three, TaxAct is the only one currently affiliated with IRS Free File. In addition to providing this service to qualified taxpayers, TaxAct offers a range of online filing packages for all clients, regardless of income bracket.

Like TurboTax and H&R Block, TaxAct has a free tier (literally called “Free”) that covers those with simple returns – W-2 income, unemployment income and others. A status return at this level costs $35 per status filed.

The other TaxAct packages are: “Deluxe” ($25); “First” ($35); and “self-employed” ($65). At each of these levels, a status return, if requested, costs $45 per status filed.

All four packages, including “Free”, come with access to tax experts over the phone. And, yes, all of TaxAct’s premium packages are billed as “start free”.

TaxAct, from $0 to $65


Forms to fill out for free

Forms to fill out for free

FreeFileFillableForms.com (screenshot)


Forms to fill out for free is a sister service of IRS Free File; it’s open to all taxpayers, including those who earned more than $73,000 in 2021. Like IRS Free File, it’s a completely free online filing option.

A seasonal program, Free File Fillable Forms is open each year from approximately mid-January to mid-October. This is an online repository of all the forms you will need for federal filing. Once you have completed your work, you can electronically sign the declaration and submit it through the site.

Free File Fillable Forms definitely has its limitations: it doesn’t give advice; it does not return status; it does not allow you to file federal returns for anything other than the current tax year; it does not allow you to make revisions once you have filed; and, as the IRS warns, that does not make “extensive“Mathematical verification of your figures.


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