Saturday, March 6, 2010

TurboTax Freedom Edition 2009

Intuit has been providing free tax preparation to millions of lower-income taxpayers via the Intuit Tax Freedom Project, created in 1998.

The Free File Alliance (FFA) is a partnership between the Internal Revenue Service (IRS) and tax software companies. This alliance provides qualifying taxpayers FREE use of participating commercial tax preparation products, including Intuit's TurboTax Freedom Edition 2009. There is no cost to the government to deliver these free services to hard-working Americans.

Although Intuit has participated in the FFA since its inception in October 2002, Intuit has been providing free tax preparation to millions of lower-income taxpayers via the Intuit Tax Freedom Project, created in 1998.

To start your TurboTax Freedom Edition 2009 return, go to www.taxfreedom.com.

TurboTax Freedom Edition vs. "regular" TurboTax products

Like TurboTax Online, TurboTax Freedom Edition is accessed via a secure Internet connection. There is no software to download or install.

Although TurboTax Freedom Edition supports Form 1040 (the "long form") in addition to Forms 1040EZ and 1040A, it does not support tax situations that are uncommon to lower-income taxpayers, such as investments, rental property, and royalty income. Click here for federal forms not supported in TurboTax Freedom Edition.

Unlike other versions of TurboTax, the Freedom Edition cannot transfer last year's tax return, nor can it import W-2 or 1099 data.


TurboTax Freedom Edition Qualifying Criteria

To qualify for free federal tax preparation and filing using TurboTax Freedom Edition 2009, you must meet one of the following criteria *

  • Earned an Adjusted Gross Income (AGI) for tax year 2009 of $31,000 or less; or
  • Qualify for the Earned Income Tax Credit (EIC) as long as both your earned income and AGI is between $13,440 and $40,249; or
  • Served Active Duty Military with AGI of $57,000 or less.

To qualify for free state tax preparation and filing using TurboTax Freedom Edition 2009, you must meet both of the following criteria:

  1. You must qualify for free federal tax preparation (above); and
  2. The state(s) must participate in the state FFA.

* subject to change

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Can I switch from a "regular" version to TurboTax Freedom Edition?

You will not be able to transfer data you've already entered in a "regular" version of TurboTax Online. If you started your return in the Deluxe, Premier, or Home & Business versions, you'll need to start over at www.taxfreedom.com with a new User ID and Password combination.

However, if you started your online return using TurboTax Free Edition (our low-end "regular" product, not to be confused with the Freedom Edition), you can sign in at www.taxfreedom.com using your original User ID and Password. You'll see a screen that gives you the choice of continuing in the Free Edition, or starting over in the Freedom Edition.

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What if I don't qualify for Turbotax Freedom Edition?

If you start a return at the TurboTax Freedom Edition website and don't meet the qualifications, TurboTax will give you the option to upgrade to a TurboTax Online version. You won't need to start over; TurboTax will transfer all of the information you have entered up to that point so you can continue where you left off.

You can also go to the IRS website www.irs.gov to choose a different FFA product.


TurboTax Freedom Edition for State Returns

For tax year 2009, twenty states are participating in the FFA. As long as you meet the qualifications, there is no charge to prepare and efile up to 3 state returns using TurboTax Freedom Edition, provided your state(s) participate in the FFA.

Participating states for tax year 2009 are:

  • Alabama
  • Arizona
  • Arkansas
  • Georgia
  • Idaho
  • Iowa
  • Kentucky
  • Michigan
  • Minnesota
  • Mississippi
  • Missouri
  • New York
  • North Carolina
  • North Dakota
  • Oklahoma
  • Oregon
  • Rhode Island
  • South Carolina
  • Vermont
  • West Virginia

(Massachusetts participated last year, but chose not to participate in tax year 2009.)
There is a program limit of 3 states per federal return for all TurboTax web-based products, including TurboTax Freedom Edition. Click here for more information.

Note: Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming have no state income tax. New Hampshire and Tennessee tax only dividend and interest income.

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