Even though the tax legislation has changed, you don’t need to pay through the nose for help filing your return. In some cases, it’s free.
In theory, the Tax Cuts and Jobs Act — which roughly doubled the standard deduction, did away with personal exemptions and trimmed individual income tax rates — should make it easier for tax payers to prepare ahead of the April 15 deadline, and without any added expenses.
The average charge for a professional to prepare an itemized Form 1040 (the standard federal income tax form) with Schedule A and a state tax return is about $273, according to the National Society of Accountants. The price quickly escalates for more complicated returns with additional forms.
However, there are plenty of ways to do it at little or no cost at all.
The IRS also maintains a Free File program. It is administered through the Free File Alliance, a nonprofit organization of a dozen tax-prep service providers, including TurboTax, H&R Block and Jackson Hewitt.
The program, which walks you through your tax filings step by step, is geared toward low- and moderate-income taxpayers, with an adjusted gross income of $66,000 or less.
Free File estimates that about 70 percent of taxpayers — roughly 100 million Americans — could qualify.
Last year, however, only about 3 million used this service, which is a missed opportunity for millions of others, according to Tim Hugo, the alliance executive director.
“It’s really just a question of awareness,” he said.