There is good news, though. Most people can keep more of their hard-earned money and file their taxes for free!
If your household brings in under $66,000 you can prepare and file your federal taxes online for free. Earn less than $54,000 and you can get in-person help through a voluntary income tax assistance (VITA) site or a tax counseling for the elderly (TCE) preparer.
Every tax preparer at a VITA or TCE site is certified by the IRS and trained to do federal, state and local taxes. This results in rejection rates as low as two to ten percent which is much lower than the rate of paid tax preparer returns (a 2014 report by the U.S. Government Accountability Office found that filings by paid preparers were riddled with errors) and doesn’t cost you hundreds of dollars, either.
Last year 101,000 Michigan residents utilized these free tax services. If you or someone you know is among the 70 percent of Americans who will receive a refund this year, why don’t you give a free tax preparer a try? It won’t cost you anything and, chances are, it’ll be as good (if not better) than paid service and will enable you to keep your money where it belongs—in your pocket.