What is infreefile and how can it be used?
INfreefile has been offered in Indiana for 18 years, dating back to 2003, making it one of the longest-running state-federal tax filing partnerships in the country.
The program allows individuals with an adjusted gross income (AGI) of less than $72,000 in 2020 to file their federal and state taxes for free, providing significant savings compared to commercial tax preparation services.
Electronically filed tax returns under INfreefile have only a 2% error rate, compared to a 20% error rate for paper-filed returns, highlighting the program's efficiency and accuracy.
INfreefile allows taxpayers to prepare and file their federal and state tax returns simultaneously, streamlining the process and reducing the risk of mistakes.
The Indiana Department of Revenue (DOR) has translated INfreefile information into Spanish, making the program more accessible to Spanish-speaking Hoosiers.
Taxpayers can choose from four participating vendors to file their taxes for free through INfreefile, each offering user-friendly, electronic question-and-answer style software.
The INfreefile program is a partnership between the Indiana DOR and the IRS, leveraging the expertise and resources of both government agencies to provide a seamless tax filing experience.
Electronically filed tax returns through INfreefile can be processed faster, with refunds issued in a matter of days, compared to the 12-week processing time for paper-filed returns.
The DOR encourages Hoosiers to wait to file their tax returns until they can take advantage of the free filing option provided by INfreefile, ensuring they maximize their savings.
INfreefile is designed to make tax filing more efficient and accurate, with the DOR providing comprehensive information and guidance on its website to help taxpayers navigate the process.
The program's electronic filing options are available 24/7, allowing taxpayers to prepare and submit their returns at their convenience.
INfreefile is part of a broader effort by the IRS and state tax authorities to increase electronic filing and reduce the burden of tax preparation for low-to-moderate income taxpayers.
The program's eligibility criteria of an AGI less than $72,000 in 2020 aligns with the IRS's Free File program, ensuring a consistent and comprehensive free tax filing solution for eligible individuals.
INfreefile utilizes the same electronic question-and-answer style software that many taxpayers pay to use, providing a familiar and user-friendly experience for those accustomed to commercial tax preparation services.
The DOR has emphasized the importance of filing tax returns early, as this can lead to faster processing and quicker receipt of refunds, particularly when using the INfreefile program.
Taxpayers who have previously used commercial tax preparation services may be surprised to learn that they can file their taxes for free through INfreefile, potentially saving them significant amounts of money.
The INfreefile program is a testament to the collaboration between state and federal tax authorities, demonstrating their commitment to making tax filing more accessible and equitable for low-to-moderate income individuals.
By utilizing INfreefile, taxpayers can avoid the common pitfalls associated with paper-filed returns, such as errors, delays, and the need to manually enter information.
The DOR's promotion of INfreefile is part of a broader effort to encourage electronic filing and reduce the administrative burden on both taxpayers and the agency.
Taxpayers who take advantage of INfreefile may be able to allocate the savings from not using commercial tax preparation services towards other financial priorities, such as building emergency funds or paying down debt.