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IRS free filing catches can cost you money

Don't Waste Your Money
Posted: 2:42 PM, Feb 29, 2016
Updated: 2016-02-29 23:01:10Z

If you earn less than $62,000 a year you should be able to file your taxes for free.

But caution: Many people who think they are free filing end up getting charged in the end.

How You Can Be Hit With Fees

To file your taxes free of charge, just visit www.irs.gov and click on the Free File section. You will see more than a dozen tax preparers, from H&R Block to Jackson Hewitt and other companies, offering free filing in 2016.

Unfortunately, many people don't do that.

They go in through TurboTax.com, HRBlock.com and even low cost provider TaxAct.com -- and end up getting hit with processing fees, state filing fees or other charges.

It's a simple mistake to make, but it can cost you $40 or more. You need to enter through the IRS portal to be sure you have the free service.

Other Catches That Can Cost You

There are other catches as well.

1: You may still have to pay as much as $30 to file your state return with some programs, even through the IRS free file system.

Solution? Try filing your state taxes directly through the state's tax website. In many cases, that is easy -- and free.

2. A second catch: Lower income limits that can trigger fees.

If you choose TurboTax -- the No. 1 program -- the income limit for 2016 is not $62,000, but rather just $31,000 for most people.

So before you begin the process, look at the income limits, which are listed on the IRS Free File page.

3. A third catch: Age limits. Free filing from TaxAct requires you to be age 56 or younger.

If you are in your 50s, you may say "doesn't that stink?"

How to Protect Yourself

The good news: There are enough options, so you should be able to find another service that will take you, no matter your age.

Bottom line: Watch for traps when free filing.

And remember to enter through the IRS's free filing portal at www.irs.gov so you don't waste your money.

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Don't Waste Your Money is a registered trademark of the EW Scripps Co.

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