Free Tax Preparation
Why should I file my taxes?
What tax forms can a free tax preparation site prepare?
How do I file my taxes?
What do I need when I visit a free tax preparation site?
What should I do with my tax refund?
What should I do if I have problems with my tax return?
Where can I get my taxes done for free?
Why should I file my taxes?
File your taxes to receive your federal and state tax refunds. Most free tax preparation sites serve individuals earning $25,000 or less annually, and families earning $49,000 or less. When you visit a free tax preparation site you can also find out if you qualify for the Federal and Maryland Earned Income Tax Credit (EITC).
- Click here to use the IRS EITC Assistant to find out if you are eligible for the Federal EITC
- Click here to use the Center on Budget and Policy Priorities EITC Estimator
How do I get the EITC?
- If you come to a free tax preparation site and qualify for the EITC, qualified tax preparers will assist you in filling out the EITC form.
- To receive your tax and EITC refund as fast as possible, you may sign up for direct deposit. You can receive your refund electronically within 7-10 days.
What tax forms can a free tax preparation site prepare?
Each free tax preparation site varies in the type of returns they are able to prepare. Sites typically prepare the following:
- 1040EZ or 1040A with Schedules 1,2,3, and EIC
- 1040 with Schedules A, B, C-EZ, EIC, and R
- Form 1040V (Payment Voucher)
- Form 1040 ES (Individual Estimated Tax Payment)
- Form 2441 (Child and Dependent Care Credit)
- Form 8863 (Education Credits)
- Form 8812 (Additional Child Tax Credit)
- WI Form 1, 1A, and WI-Z
- WI Homestead Credit
Free Tax Preparation sites genearlly do NOT prepare the following:
- Schedule C (Profit or Loss from a Business)
- Schedule D (Complicated and Advanced D's)
- Schedule E (Rental Income)
- Form SS-5 (Requent for a Social Security Number)
- Form 2106 (Unreimbursed Employee Business Expenses)
- Form 3903 (Moving Expenses)
- Form 8606 (Nondeductible IRA)
- Form 8515 (Tax for Children Under 14 with Investment Income)
How do I file my taxes?
1. Use one of our FREE tax preparation sites
- Visit one of our partner's VITA sites
- Some sites may have specific qualifications, so check with the site before visiting
2. File your taxes online
- If you make under $56,000 a year you may be able to file your taxes online for free using the IRS' e-file.
- By filing online you get faster refunds, greater accuracy, and quick confirmation. Click here to file your taxes online.
3. Use a Paid Tax Preparer
This option is best if you earn too much money to use a VITA site or if you are a business owner. Here are some tips for when you are seeking out a paid preparer:
- Choose a preparer with history. Find out how long the preparer has been in business, the longer the better.
- Find out if the preparer received any training. In Maryland, legislation passed in 2008 requiring Individual Tax Preparers to register with the state and pass an examination.
- Ask about the fees. Some paid tax preparers are not clear about the fees and may charge additional hidden fees. It is important to ask them if there are any additional costs, what the cost is for each form, and what the fees are for different refund options.
- Avoid Refund Anticipation Loans (RALs). When you take out a RAL you are borrowing against your tax return, and may end up paying enormous interest on your own refund.
- Make sure your tax preparer signs your tax return and includes their address, Employer Identification Number (EIN) or Social Security Number.
- Make copies of your return for your records.
What do I need to bring when I visit a free tax preparation site?
If you decide to visit a free tax preparation site, please bring:
- Photo ID of the tax filer
- Social Security cards for everyone in your family
- Birthdates for every person claimed on your tax return
- Your W-2 forms from all jobs worked in the past year
- 1099 forms of other income
- Child care provider name, address, and tax ID number
- Copy of last year's tax return
What should I do with my tax refund?
Tax season is an exciting time to save. Here are some tips for using your tax refund so that it helps you and your family move towards financial security:
- SAVE
- Start a rainy day fund, you never know when something comes up and you will need some extra money. Many financial planners recommend building enough savings to cover living expenses for six months. Your tax refund can help you reach that six month savings mark.
- Pay off your debt
- Use your tax refund to work towards paying off your debt. An extra large payment towards a credit card balance can go a long way. This will help you increase your credit score and reduce your interest costs.
- Open an Individual Retirement Account (IRA)
- Don't put off planning for your retirement. Open an IRA and make your tax refund your first contribution.
- Save for your child's education
- 529 College Savings plans are investment plans with tax advantages to encourage higher education. Maryland has one of the best 529 College Savings Plans available. If you contribute at least $2,500 per year to a Maryland 529 plan then you qualify for a state tax deduction! Click here to find out more information about Maryland's 529 College Investment Plan and 529 Prepaid College Trust.
- US Savings Bonds
- Invest in our country by purchasing a U.S. Savings Bond. Savings Bonds are a safe and secure way to invest your money. Your interest is tax exempt on both state and local taxes. You can't lose your money and your investment is backed by the U.S. Treasury Department. Savings bonds are also a great gift for your children and grandchildren.
- Housing
- Write a big check to your mortgage company to help lower the interest you will owe on your primary mortgage. If you took out a home equity line of credit, use your refund to pay it down.
- Car Maintenance
- If your car is due for a checkup, or you've been holding off some necessary work, use your tax refund to fix up your car.
What should I do if I have problems with my tax return?
The following agencies provide Low-Income Taxpayer Clinics (LITCs) to support consumers facing controversial federal income tax return issues, and provide assistance with appeals, audits, and collection disputes:
- Maryland Volunteer Lawyer Service (MVLS), call 1-800-510-0050
- University of Maryland School of Law, call 410-837-5706
- Community Tax Aide, call 202-547-7773
