How to Receive Free Income Tax Returns: Strategies and Resources
Every year, millions of taxpayers face the task of filing taxes, only to find themselves subject to charges. However, there are strategies and resources that can help you file your taxes for free and manage your finances more efficiently. This guide introduces you to key methods and tools that can save you both time and money, making the tax season a breeze.
Earn and File Taxes for Free
At its core, earning money through any legal means and ensuring it is subject to the tax laws of your jurisdiction can vary widely. But there's a strategy that leverages government programs to make the tax process free for those who qualify. One such method involves using the IRS Free File program, which provides free tax software for individuals with incomes that fall below a specific threshold.
The IRS Free File Program
The IRS offers a program called Free File, which is designed to provide free tax preparation and filing services to eligible taxpayers. To take advantage of this program, you typically need to meet certain eligibility criteria, such as having an Adjusted Gross Income (AGI) that falls below the set limit. This limit varies by year, so it’s important to check the current year's requirements.
To get started, visit the official IRS website and enter "Free File" in the search box. This will lead you to a list of providers who offer free tax preparation software. Make sure to choose a provider that is IRS-designated and approved. This ensures that your tax return is processed accurately and timely.
Earn Tax-Free Income: Resale License and Tax-Free Municipal Bonds
A more unconventional method to earn and keep your income free of taxes involves obtaining a resale license and using tax-free municipal bonds. By obtaining a resale license, you can purchase items with the intent of reselling them, ensuring that the tax is collected on your behalf. Essentially, you ensure that all purchases are for resale purposes only, and none are for personal use.
Furthermore, earning your income from tax-free municipal bonds can also be a viable strategy. These bonds provide income that is exempt from federal income tax, and in many cases, state and local income tax as well. This makes them an attractive option for those looking to manage their tax liability effectively.
Additional Resources and Information
For those who may have missed the deadlines for filing their 2019 or 2018 tax returns, the IRS may still be able to issue refunds or handle the returns for you. According to a news article from March 28, 2020, the IRS plans to deposit refunds directly into individuals' bank accounts. If direct deposit isn't an option, they will send out checks by mail.
The IRS website also provides detailed information on how to handle these situations. You can find guidance and further assistance on their website, where they clarify that no sign-up is needed to receive the money. However, the agency may provide additional guidance depending on the number of taxpayers affected.
Overall, using the IRS Free File program, obtaining a resale license, and earning income from tax-free municipal bonds are practical strategies to ensure your tax returns are free and simplify your financial management.