promoearn: The Daily Money: Tax season is here. Don't sleep on these free tax prep services

Sunday, January 29, 2023

The Daily Money: Tax season is here. Don't sleep on these free tax prep services

ALL THE MONEY NEWS YOU NEED TO KNOW

Sunday, January 29

It's time to take a big breath in – hold it and count to five – and let it out slowly.

Alright, now that you've applied one of the most cliché calming exercises, I can break the news to you that tax season is here. In fact, it began almost a week ago. But fear not, you've got plenty of time to complete your taxes for 2022.

That doesn't mean you should wait until April, when taxes are due for most people, to get your act together. That's especially true for people seeking out free tax preparation services.

So to kick off our first special Sunday tax season edition of the Daily Money, let's walk through what you need to know about free tax prep services.

VITA and TCE

There are plenty of resources available especially for low and moderate-income taxpayers as well as taxpayers 60 and older. But the closer April 18th gets the less likely you are to get an appointment (which is generally required) or adequate time to work with a free tax preparation consultant.

Two of the Internal Revenue Service's biggest free tax prep programs are Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE). VITA is geared toward people who make less than $60,000 a year, have a disability, or have limited English proficiency. TCE is geared toward people 60 and older who often need assistance with retirement and pension-related questions.

The IRS oversees both programs which are ultimately operated by partners across the country and staffed by IRS-certified volunteers.

"All VITA/TCE volunteers who prepare returns must take and pass tax law training that meets or exceeds IRS standards," the IRS said in an online post. "This training includes maintaining the privacy and confidentiality of all taxpayer information."

You can find your nearest VITA or TCE center by entering your ZIP code here.

The IRS recommends bringing your Social Security card, photo ID, wage and earning statements (namely any W-2s or 1099 forms you received from your employer or employers) and the following other items.

To learn more about the services these centers provide (and don't provide), be sure to check out this IRS flyer.

IRS Free File

Prefer to work on your taxes from the comfort of your own home? Then IRS Free File is the service you'll want to use this tax season.

IRS Free File has a higher income cap, $73,000, than VITA but provides less one-on-one attention. IRS Free File grants you access to online-guided tax prep software to complete your federal income tax return andin some cases, your state income tax return as well.

There are seven tax software companies, including TaxACT and TaxSlayer, that are part of the Free File Alliance that offer these services. According to the Alliance's site, more than 68 million returns have been filed this way since 2003.

Click this link to learn more about the program and how to start using it.

If you earned more than $73,000 last year the IRS has a "consolation prize" for you: free online fillable tax forms.

Happy tax filing!

Your weekend tax break

Do you know what's better than an Oreo? An Oreo stuffed with crumbles of another Oreo. These limited edition Oreos hit the shelves this weekend but they may be hard to find since so many people have already pre-ordered them.

Anyway, yours truly will be on the hunt for them. Until next time, Daily Money readers.

Elisabeth Buchwald is a personal finance and markets correspondent for USA TODAY. You can follow her on Twitter @BuchElisabeth.