IRS Free File is now available to assist Hawaii tax filers

| January 23, 2015 | 1 Comment

Internal Revenue Service
News Release

Free_File_Logo_wHONOLULU — The Internal Revenue Service and the Free File Alliance have announced the launch of Free File, which makes brand-name tax software products and electronic filing available to most taxpayers in Hawaii for free, Friday.

Free File software can help taxpayers with tax preparation, including the health care law that will affect almost everyone.

Hawaii taxpayers can use Free File software immediately — e-filed returns started transmitting to the IRS, Tuesday, when the filing season officially began.

“About 70 percent of all federal tax returns come in below the $60,000 income level,” said IRS spokesman David Tucker II. “Millions can use it to file a federal income tax return for free.”

Nationally, more than 3.2 million people used Free File last year with over 12,000 coming from Hawaii. Since 2003, more than 43 million people have used Free File, saving $1.3 billion based on a conservative $30-fee estimate.

“You don’t have to be an expert on taxes or the new health care law. Free File software can help walk you through the rules and help you get it right,” said John A. Koskinen, IRS commissioner. “For 12 years, this partnership between the IRS and the Free File Alliance had helped taxpayers save both money and time. The real winner in this partnership has been the nation’s taxpayers.”

Taxpayers who earned $60,000, or less, last year are eligible to choose from among 14 software products. For those who earned more, they are still eligible for Free File fillable forms, the electronic version of IRS paper forms. This more basic Free File option, which is best for people comfortable preparing their own tax return, became available Tuesday (Jan. 20).

Free File offers easy-to-use products that ask questions and supplies answers. The software will find the right forms, find the right tax credits and deductions and even do the math.

Free File will be available through October 2015. Taxpayers who cannot meet the April 15 tax deadline canalso use Free File to file a six-month exemption.

 

Health Care Requirements

Almost everyone will need to do something new when filing a tax return this year. Free File can help taxpayers with new health care requirements. For each month in 2014, you and everyone on your return must do the following:

•Report health care coverage.

•Claim an exemption from coverage.

•Make a shared responsibility payment with your tax return.

Most people will simply have to check a box to report health care coverage for the entire year.

Free File is available only at IRS.gov/FreeFile.

Documents

Here are some common tax-related documents you will need to complete your tax return. Remember, you must also have documentation of any credit or deduction you are claiming as well.

•A copy of last year’s tax return.

•Valid Social Security numbers for yourself, spouse and children.

•All income statements, i.e. W-2 forms, from all employers.

•Interest/dividend statements, i.e. 1099 forms.

•Form 1099-G showing any state refunds.

•Unemployment compensation amount, if any.

•Form 1095-A, if you purchased coverage from a Health Insurance Marketplace.

•Proof of health care insurance coverage for you and everyone on your return.

 

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Comments (1)

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  1. Tony Novak says:

    Unfortunately some Freefile users find out that Freefile isn’t what they expected. This week we saw an increase in news coverage of problems with Freefile services and firms that take advantage of consumers in this situation through lack of up-front disclosure of costs and limitation. I put together my own thoughts in a short article “When free online tax filing really isn’t free” at http://tonynovak.com/tax/when-free-tax-filing-really-is-not-free.html. Last year I switched to 1040 .com self-filing partly because of their clear up-front and complete pricing disclosure that I re-posted at http://tonynovak.com/tax/fees-for-self-prepared-tax-returns.html . I like that updates are always automatic, some easy returns are free and there is no up-selling for additional state filings, etc. The added benefit is that this platform makes it easier for me (as CPA) to get involved later if the self-filer wants a review or audit help is needed.

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