DES MOINES – Iowa Lt. Gov. Kim Reynolds, accompanied by Iowa Department of Revenue director Courtney Kay-Decker, urged eligible Iowa residents to use the Iowa Free File program to save money at tax time. This program allows taxpayers with an Adjusted Gross Income of $58,000 or less to use name-brand tax preparation software to prepare and file their federal and state returns online for free.
Iowa is one of 21 states, plus the District of Columbia, that sponsors a State Free File program, allowing eligible residents to easily and accurately complete both their federal and state taxes with trusted name-brand tax preparation software of their choice. Free File empowers taxpayers to claim every single deduction and credit they are entitled to, including the often missed Earned Income Tax Credit (EITC).
“The Iowa Free File program helps Iowans save money during tax season and assists in obtaining maximum tax deductions,” said Reynolds. “It takes the stress out of tax season and puts hard-earned money back in taxpayers’ pockets. The Free File program is an excellent example of how the government and private sector can work together to help our community.”
“Free File not only helps save taxpayers’ time and money, but also saves Iowa’s government money by encouraging electronic filing and reducing errors,” said Courtney Kay-Decker, director of the Iowa Department of Revenue. “E-filing is the fastest, safest and easiest way to file your taxes, and the Iowa Free File program makes it even easier.”
By helping more people file electronically, Free File helps save the state money, reduces errors and speeds up the time it takes to issue a refund. According to the Iowa Department of Revenue:
- The cost of processing a paper return is $1.76 while processing an electronic return is $.18 – a savings of $1.58 per return.
- The error rate for paper returns is 33 percent while it is only 8 percent for electronic returns.
- The Iowa Department of Revenue issues 96 percent of individual income tax refunds to those who filed electronically within 2 weeks of filing.
According to the IRS, 40 million taxpayers across the country have prepared their federal returns through Free File since the program began more than a decade ago.
For more information on the Iowa Free File program, visit the Iowa Department of Revenue website:www.iowa.gov/tax and click on the “e-file electronically” logo.