14 Time March 30, 2020
income and take the standard deduction,
for example, it could be a good option.
Credit Karma Tax. Credit Karma doesn’t
charge a fee and promises to never up-
sell users—even those who have complex
tax situations. That makes it a more at-
tractive option for some small- business
owners, freelancers, people with income
from capital gains or rental property,
and so on. But you should know that the
company makes money by recommend-
ing financial products based on users’ tax
data. Credit Karma says it doesn’t share
users’ personal data with its marketing
partners, but it’s worth considering any
potential privacy trade-off before using
the service.Fewer people use Free Tax-Filing
options than you’d think. Free File is
available to 104 million taxpayers, yet
only 2.5 million used the service last
year, down from 5.1 million 15 years ago.
Last month, the Treasury Department’s
inspector general criticized Free File’s
“complexity, confusion and lack of tax-
payer awareness.” Part of the problem
is that tax-prep companies have worked
to keep Free File quiet to protect their
business, some experts and advocates
say. “The whole game now is for those
companies to prevent taxpayers from
getting onto the IRS Free File site,” says
UC Davis professor Dennis Ventry. He
suggests going directly to the IRS web-
site (IRS.gov) instead of using Google
to search for free tax help, which may
point users to products that wind up not
being truly free. He adds that if you’re
not eligible for a particular Free File
product, check the IRS’ other options
before exploring a paid product.
Do your research and know what
you’re signing up for. Will free help actu-
ally cover your needs? Are you comfort-
able with a broad, free service like Credit
Karma if it means letting a company
profit from your personal financial data?
The work involved may seem like a has-
sle, but remember it’s likely to pay off for
some time. “The first time you choose one
of these options, it can seem a little intimi-
dating,” says Mark Mazur, director of the
nonpartisan Urban-Brookings Tax Policy
Center. “The trick is to get over that in-
timidation and realize that once you mas-
ter an approach, it will be a lot simpler in
subsequent years.” □It’s easier than ever to get
free tax help. Here’s how
By Kevin Kelleher
TheView Business
More people
are eligible to
file their taxes
for free than
many realizewhile This year’s Tax deadlines have been delayed
for 90 days, returns will still need filing out eventually.
Fortunately, at a time when cash flow is so iffy, there are a
number of programs that can help you calculate or file your
taxes for free.
Free tax help and filing programs fall into two groups:
those that connect users to volunteers for in-person help,
and those that offer do-it-yourself software for filing federal,
and sometimes state, tax returns. Many of the in-person,
volunteer-based tax-help programs are currently suspended
because of corona virus concerns, so we’re going to focus on
free software-based tax- filing options. Keep in mind that
“free” can come with catches—like software that upsells users
into paid options—so be sure to do your homework before
picking the best option for you. Here are some options for free
tax filing:
IRS Free File. The IRS works with Intuit, H&R Block and other
tax-software makers to offer free online filing for people who
earned $69,000 or less in 2019. However, eligibility standards
vary, and not all offer free state filing. Don’t confuse these services
with the companies’ branded tax-preparation options, which
may not be free and are not bound by the IRS’ Free File rules.
Free File Fillable Forms. Taxpayers earning more than $69,
who feel comfortable mostly going it alone can use the electronic
version of the IRS’ paper forms at no cost. While these will do
some automatic tax math, they offer only basic guidance. And
you can’t use them to file state taxes.
MyFreeTaxes. A collaboration between United Way and H&R
Block, this program provides free filing for taxpayers with sim-
ple tax situations. If you have just a W-2 and modest interest