Commercial Software

• The IRS e-file system allows you to prepare your own income tax returns, using commercial software. To do this, you simply need to purchase IRS tested and approved tax preparation software, which you can find in the software departments of most supermarkets. You then simply enter your information and follow the directions given by the software to prepare and send your return.
  
  

Free File Fillable Forms

• The IRS Free File system provides fillable electronic counterparts to paper IRS forms (see Resources), which you can use to fill out your tax returns yourself. The advantage to this is that it is completely free, with no need to even buy software. The downside is that Free File does not provide forms for state preparation and state e-file, and there is no professional advice for what you can and cannot claim as deductibles.
  
  

Free File Providers

• If you made $58,000 or less, you can have your tax return prepared by a Free File partner company for free (see Resources). Generally, these companies will have an online system or downloadable software that will guide you through the process by asking you a series of simple questions, determining what your taxable income was and what deductions you're eligible for. Another advantage to this route is that many of these companies will also help you prepare and e-file state returns for free or for a small price.
  
  

e-file Providers

• The IRS also provides a list of authorized e-file providers (see Resources), which can provide more hands-on professional advice in the preparation and filing of your tax returns. This is the route to go if you want the best quality, but, as a disadvantage, this is not a free service.