The Free File program is a Free Federal Tax Preparation and electronic filing program for eligible taxpayers developed through a partnership between the Internal Revenue Service (IRS) and the Free File Alliance LLC, a group of private sector tax software companies. Since Free File’s debut in 2003, more than 15.4 million returns have been prepared and e-filed through the program.
Free File allows taxpayers with an Adjusted Gross Income (AGI) of $52,000 or less in 2008 to e-file their Federal Tax Return for free. That means 70 percent of all taxpayers – 95 million taxpayers – can take advantage of the Free File program.
If you're looking for a great deal on Web-based tax software, start your search at the IRS's Free File Alliance page: You'll find offers from all major tax-software vendors for free Online Tax Preperation and e-filing.
In almost all cases, no restrictions apply: All you need to do is link to the vendor of your choice from the IRS Web site. All the major vendors are listed, along with a brief description of what the company is offering (typically, it's their basic Web-based 1040 software). When you've made your choice, you simply click on the product name to leave the IRS Web site and then land on a special page where you can sign up for the Free File offer.
