Far too few taxpayers use Free File

With just under a month to go, the countdown to Tax Day has begun. 

And if you haven't filed your taxes yet, you're not alone. A survey by IPX1031, a subsidiary of Fidelity, found that nearly a third of Americans procrastinate in taking care of their taxes and 1 in 5 wait until April 15. 

But when you finally do gather your paperwork and prepare to take on the annual responsibility and headache, first determine whether you're able to make it that much easier — by using the Internal Revenue Service's Free File program.

Saying "free" and the IRS in the same sentence may seem absurd. But such services can make tax time that much easier — and less expensive — for many Long Islanders.

Unfortunately, very few taxpayers took advantage of the program, which works through a public-private partnership between the IRS and the Free File Alliance, a nonprofit coalition that offers taxpayers who meet certain requirements free tax preparation and filing.

The Free File program has existed for more than two decades, though using the program's providers and software has become increasingly easier as electronic preparation and filing have become ubiquitous. Seven out of 10 income tax filers nationwide are eligible, which this year applies to those earning an adjusted gross income of $89,000 or less. Nonetheless, last year, just 2% of eligible filers took advantage of it, according to the personal finance site NerdWallet. That's 102 million taxpayers nationwide who qualified — but didn't take advantage.

The process is straightforward and relatively simple.

Taxpayers who meet the income threshold can go to the IRS's Free File website, fill out a questionnaire, and directly access a legitimate, trusted Free File third party provider with whom the IRS partners, including sites like FreeTaxUSA and TaxAct, which supply the software to guide them through the process. Many of those providers also allow taxpayers to file their state returns for free at the same time. 

Beyond free tax preparation and filing options, the IRS also importantly offers free in-person services, including counseling and assistance programs to low income families, seniors, and those with disabilities or for whom English is a second language. Long Island has many locations, including public libraries and other clinics, that offer those services; a locator service by ZIP code is available on the IRS website.

These services are particularly important, as tax time too often becomes a paradise for scammers, identity thieves and others who are not legitimate resources. It's essential to be careful, and make sure you're seeking assistance from authorized, appropriate sources; that's why going through the IRS directly to seek online or in-person providers is often the best scenario.

Federal officials should do more to publicize these IRS services. For those who qualify, it may just be a chance to make tax time less taxing.