70% Qualify for Free 1040 Software

70% Qualify for Free 1040 Software

People with an income up to almost $50,000 will get free access to tax return preparation software, the Internal Revenue Service said Tuesday.

That means 70 percent of taxpayers can prepare their taxes for free using software available through the IRS Web site — www.irs.gov Still, that is fewer taxpayers than last year, when several private companies decided to offer free return preparation to everyone.

Under an agreement that extends a partnership between the IRS and private software companies for four years, taxpayers with an income less than $49,582 can use the service next year. Companies can set qualifications for access, as long as it includes that income cap.

The agreement lets the companies market refund anticipation loans to customers who use free software. The product allows customers to get immediate access to cash through a loan that is paid off when a tax refund arrives.

Companies participating in the program must give consumers the ability to opt out of getting any refund anticipation loan marketing information. If consumers do consider a loan, the software companies must clearly disclose their interest rates and costs.

IRS Commissioner Mark Everson said that gives consumers important new protections. “We think this is a constructive step forward,” he said.

Some consumer groups have criticized the loans as too costly to lower-income taxpayers who often don’t understand the expense and structure of the loans.

Bert DuMars, IRS director of electronic tax administration, said the agency expects many of the 3 million people who used to file their taxes by telephone — an option the IRS no longer allows — will take advantage of the free filing program.

More than 5 million taxpayers used the free tax preparation software this year.

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Alan Olsen, is the Host of the American Dreams Show and the Managing Partner of GROCO.com.  GROCO is a premier family office and tax advisory firm located in the San Francisco Bay area serving clients all over the world.

Alan L. Olsen, CPA, Wikipedia Bio

GROCO.com is a proud sponsor of The American Dreams Show.

The American Dreams show was the brainchild of Alan Olsen, CPA, MBA. It was originally created to fill a specific need; often inexperienced entrepreneurs lacked basic information about raising capital and how to successfully start a business.

Alan sincerely wanted to respond to the many requests from aspiring entrepreneurs asking for the information and introductions they needed. But he had to find a way to help in which his venture capital clients and friends would not mind.

The American Dreams show became the solution, first as a radio show and now with YouTube videos as well. Always respectful of interview guest’s time, he’s able to give access to individuals information and inspiration previously inaccessible to the first-time entrepreneurs who need it most.

They can listen to venture capitalists and successful business people explain first-hand, how they got to where they are, how to start a company, how to overcome challenges, how they see the future evolving, opportunities, work-life balance and so much more..

MyPaths.com (Also sponsored by GROCO) provides free access to content and world-class entrepreneurs, influencers and thought leaders’ personal success stories. To help you find your path in life to true, sustainable success & happiness.  It’s mission statement:

In an increasingly complex and difficult world, we hope to help you find your personal path in life and build a strong foundation by learning how others found success and happiness. True and sustainable success and happiness are different for each one of us but possible, often despite significant challenges.

Our mission at MyPaths.com is to provide resources and firsthand accounts of how others found their paths in life, so you can do the same.