Things You'll Need:
- Social Security number
- Email address
- W-2 form(s)
- Tax-related documents
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Step 1
Organize your tax records. You'll need your W-2 form(s) plus records of any non-wage income such as profits from stock transactions and interest income. You must have documentation of charitable contributions and retirement fund investments, along with any other deductible expenses. Remember, you must be able to document everything in the event you are audited.
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Step 2
Select the appropriate IRS tools. If your adjusted gross income is below a specified limit ($56,000 for 2008), you can use the IRS Free File system. This is a network of cooperating tax preparation firms that allow taxpayers to use their software at no charge. If you don't meet the Free File income eligibility requirement, you may use the IRS Free Filable Forms system to e-file income taxes.
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Step 3
Go online to the IRS website (irs.gov) and choose "E-file," then "Individual Taxpayers." Next, choose "File Online for Free." You will see an overview of the Free File and Free Filable Forms systems, along with links to each. Click on the link you want.
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Step 4
Look at the list of tax service providers if you chose Free File. Some companies add restrictions in addition to the IRS income limit. Many will prepare and e-file your state return, but most will charge you for this. Pick the provider that is best for your needs. Keep in mind that you can use any of these providers even if you don't qualify for free filing, but you will be charged a fee.
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Step 5
Create an account with the Free File provider you've chosen. Once you've done this, follow the instructions and prompts that the software gives you. Each provider has its own software, so the directions will vary from one to the next. Once you are done, you'll be instructed how to electronically sign and submit your tax return. You'll also be prompted to choose whether or not to add your state tax return. If you wish, you can print out the tax return and file by mailing it in.
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Step 6
Use Free Filable Forms if you don't meet the income requirement for Free File. You will be asked to create an account (with username and password) so you can save your work. The Free Filable Forms system does not do your taxes for you, but it does have help tools and most IRS tax forms. When you are finished doing your federal tax return, you may electronically sign and e-file it or you can print out a paper copy to sign and mail in. State tax returns are not available with Free Filable Forms.
