Tax Time

Yes, it's that time of year again. We got our W2's last week at work. I think it's the earliest ever.

Did you know that you could be able to file your taxes electronically for free? The IRS has an awesome program called  Free File. If your adjusted gross income is less than $58,000 (which is 70% of taxpayers according to the IRS), you qualify. You get to use free software from tax preparation companies to complete and electronically file your taxes.

But wait you say, I make more than $58,000. Remember, it's your adjusted gross income that matters. For example, let's say make $65,000. You don't qualify, correct? Well, it depends. If you put 15% of your pay into your 401(k), the IRS DOES NOT consider that income for tax purposes. It's tax deferred, meaning you pay when you withdraw it. So that means the IRS "thinks" you made $55,250. As long as your other earnings from interest, etc. don't bring you above the $58,000, you are golden.

I've used this program for the last several years. I HIGHLY recommend it. Also, my state lets me complete and file my state return for free electronically by using the state's website. Your state may well do that same.

Please pass this along to anyone you know who doesn't know about it. It is a fantastic program.