If there is one thing most adults can agree on, it’s the complexity and dread that tax season often brings. Most of the time, the fear arises from a lack of understanding of the tax system and the perception that tax filing is a complex procedure that only accountants can handle. However, the internet and today’s modern financial systems offer several means by which one can file their taxes for free. In this article, we dramatize how you can file tax free and even take a look at the international tax treaties like the us australia tax treaty.
Online Solutions
The advent of the internet has revolutionalized nearly every facet of life, and tax filing hasn’t been left behind. Several companies offer free tax filing services for simple tax returns. They include TurboTax, H&R Block, TaxSlayer, and Credit Karma, among others. Provided your tax situations aren’t complex, for example, if you’re filing a 1040EZ form or a standard 1040 form, these platforms can be indispensable.
Most of these platforms feature a simple, user-friendly interface easily navigable to guide you through the process. It’s akin to having an interview with a tax professional. You answer the questions accurately, and the software does the hard-yards of filling in your tax forms, ensuring you comply with every IRS requirement.
Utilize IRS Free File
The Internal Revenue Service (IRS) partners with numerous companies to offer free tax filing services for those qualifying in the IRS Free File offering. If your adjusted gross income is $72,000 or less, you qualify for free tax filing services from these companies. The IRS Free File webpage provides links to these partnered companies and resources to walk you through tax filing.
Volunteer Income Tax Assistance (VITA)
If your income is $57,000 or less, you’re disabled, or you struggle with English, the VITA program can be immensely helpful to you. IRS-approved volunteers offer free tax help and guide you through your tax filing. These volunteers are well-versed in the tax code and can help ensure accuracy in your tax filing.
Illuminating the US-Australia Tax Treaty
One of the complexities that arise with tax filing is when you’re a US person living abroad or an Australian living and working in the US. Thanks to the us australia tax treaty, double taxation between these two countries is eliminated.
This treaty avoids a situation where you could be subject to taxes in both countries, a burden that could take a significant toll on your financial well-being. Through this treaty, you’re subject to taxes in your country of residence, which should then give you credits against taxes levied by the country where the income is sourced. By understanding and properly applying this treaty, you can save significantly on your tax bill.
Conclusion
While tax filing can seem to be a frightening task, several resources can guide you through the process and even offer free services, providing that you fall within certain criteria. From using free online tax services, IRS Free File, VITA program, or understanding the intricacies of international tax treaties like the us australia tax treaty, you can ensure you remain compliant with your taxes, avoid penalties, and reduce your tax liability.