The IRS partners with the nonprofit organization Free File Alliance, a group of eight software companies that offer tax filing services. The IRS and the Free File Alliance have given roughly 100 million taxpayers free access to tax preparation software through the Free File Program since 2003.  Taxpayers who qualify for the program can access software from up to 8 tax-preparation companies including TaxAct and 1040Now.

How does the program work?

As a general rule, you may be able to qualify for the free tax filing services if your individual or joint adjusted gross income with a spouse is $73,000 or less. 

But each tax prep service lists its own qualifications which can include restrictions around income, age, military status, and more. Here are a few examples: 

• FileYourTaxes.com offers free filing for people who earn between $9,500 and $73,000, and are 65 years or younger. People living in certain states can file state taxes for free. 
• TaxAct provides a free service for people 56 years old and younger, who earn $65,000 or less annually. Some state filings are also free.
• With Free1040TaxReturn.com, people who are any age and earn $73,000 can file for free, except if they live in certain states. 

The IRS provides a lookup tool to help taxpayers find the free service that works best for them. 

About 57 million American taxpayers have used this program since it started in 2003, according to the Free File Alliance. The program has reportedly saved taxpayers $1.7 billion in tax preparation fees, according to the IRS. 

Some but not all of the services allow you to file your state tax return for free, depending on the state.

When can I file my taxes?

Your employer should send any W-2 or 1099 forms you need to file your taxes by January 31, 2022. The IRS started accepting federal tax returns on January 24, 2022. 

Taxes are due on April 18, 2022. So make sure to file your tax return before that date.

The post Do You Know About the IRS’ Free File Program? appeared first on Stash Learn.

While some people choose to take only the bare minimum out of their paychecks to pay the government throughout the year, others count on that annual chunk of cash to get ahead on their loans, renovate their houses, maybe even go on a little shopping spree.

We spoke with five people across the U.S. who have big plans for their refunds.

John Walko

Small business owner
Charlotte, North Carolina
Refund strategy: Work and play

“My wife and I are expecting around $9,000 this year,” Walko says. “We are looking to invest $4,500 into our business.”

The Walko’s own a 5-year-old web design and marketing company. They’re planning to boost the company’s presence with postcards and other marketing materials as well as ads on Facebook and Google.

As for the rest of it? Packing up the family, his wife and three daughters, ages 5 to 11, for a sunny vacation to Bermuda.

“We’re planning to take a cruise with our three daughters. We think the cruise would be an exciting thing for them,” he says. “All the cake and ice cream you can eat.”

“I think cruises are one of the best value vacations a family can have,” he says.  “We think it will be an exciting thing for them. All the cake and ice cream you can eat.”

Alex Tran

Digital marketing strategist
Seattle, Washington
Refund strategy: Home remodel

“I’m getting about $3,500 back,” Tran says. “I’m spending my refund on remodeling my kitchen and patio.”

Tran, who works with an e-commerce and logistics company, says she and her boyfriend have been saving for this remodel for two years.

“We live in a tiny 2-bedroom condo,” she says. “We want more space and more light to come into our home.”

That means tearing down one wall to create an open kitchen area and then tearing down another one between the patio and the living room to create a bigger living space.

“I will have my meditation corner and our living room area will be more welcoming,” she says.

Marc Andre

Personal finance blogger
York, Pennsylvania
Refund Strategy: Charity and saving for Disney

“My wife and I are planning to get a tax refund of about $2,000 to $3,000,” says Andre, a financial blogger. “We’re planning to use it in two ways: saving towards a family vacation and charitable giving.”

The couple hopes to take their 3 and 6-year-old daughters on their first trip to Disney World in February 2020, “so this is a good opportunity to get a head start on saving for that expense.”

The couple is also passionate about giving back. The charities they’ve picked out are humanitarian organizations that fight human trafficking.

“We normally don’t have as much money as we’d like to set aside for these types of expenses,’ Andre says. “But the extra money from the tax refund will make it possible.”

Danny Williams

Federal law enforcement
Kent, Washington
Refund strategy: Pay off a cross-country move and pay bills

Williams, who moved from southern Louisiana to the Pacific Northwest last year, says his refund this year—hopefully between $3,000 and $5,000—will first go towards paying off some of the costs of the move, which he made with his family to take a new job.

“Under the new tax law, these expenses are no longer tax-deductible, even though I moved for my job with the federal government,” he says.

Williams says he and his wife like to use their refund for something fun like a new television or something for their kids. But not this year. After paying off their moving expenses, the rest of the refund is going to pay bills, namely the mortgage on the house they closed on right before Christmas.

Kathie Steinert

Retired teacher
Suffield, Connecticut
Refund strategy: Pay down the car loan (and maybe pad the vacation fund).

When Steinert gets her $3,500 back from the IRS this year, she plans to first “throw a little extra into paying off the car,” adding that she still has about $10,000 left to pay on her 2018 Honda Accord.

She’ll save the rest for a vacation whenever her wife can get away from work.

“I want to go to the Greek islands, but I think [she] wants to go to some island off of Florida,” Steinert says. “I’m fine with that. It’s less expensive, and as long as we get away some place, I’ll be happy.”

Consider Stashing it

Have a tax refund coming your way? Consider stashing it in a Stash Retire account.

The post Tax Refund 2018 On the Way? Here’s How People Are Using Theirs appeared first on Stash Learn.