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Income tax preparation is a stressful task, but it is not if you choose to do your taxes online using free tax software program. Just follow the step-by-step instructions and supply the tax related information asked by the software and your task is done!

1. Step 1

   For most of the people, income tax preparation is a stressful task, but it is not if you choose to do your taxes online using free tax software program. Just follow the step-by-step instructions and supply the tax related information asked by the software and your task is done!

2. Step 2

   It's not surprising that the majority of taxpayers now filing their taxes on their own to the IRS using free e-file preparation software programs. Compare to paper filing taxes, preparing online income tax return is easy and convenient because you have to fill up the forms by using required information and tax data. Tax software programs will help you search through the possible income tax credits and deductions that can suit your situations. What you have to do is to claim for necessary deductions so that there's no risk of unnecessary audits.

3. Step 3

   For the purpose of preparing taxes and electronically filing your return for free, there are IRS Free File websites you can use. The IRS has teamed up with many software companies with a view to make tax preparation free or low-cost. You can use Free File program provided by the IRS if your adjusted gross income, which is known as AGI, is less than $56,000 as recorded in 2008. If you explore the internet, you'll come across tons of online income tax preparation services offering tax preparation and e-filing services that you can benefit from.

4. Step 4

   Once you've prepared your income tax filing online, you can submit e-file easily to the IRS. The benefit of e-filing tax return is that your information is instantly sent to the IRS in an electronic format. Moreover, the IRS service center does not have to re-type your file if it is in electronic format and this may increase the chances of processing your return file faster. You can get your refunds faster within as few as 10 days by getting your refund directly deposited into your bank account.

(via eHow)

How to e-file your taxes online?  It's as easy as 1-2-3 !

Step 1 - Get all your tax information together! - You'll save time and won't have to stop in the middle of preparing your current year tax return to find a missing document. Here's what you'll need :

• Social Security numbers for yourself, your spouse, and any dependents.
• Forms W-2 from all employers are required for yourself and your spouse.
• Forms 1099 for Dividends, Retirement, or other income, or any Forms 1099 with Income Tax Withholding.
• Receipts for expenses for Itemized Deductions (Schedule A).
• Receipts and records for other income or expenses.
• Bank Account numbers (for a fast refund, or to pay electronically).
• Prior year Adjusted Gross Income amount or prior year PIN if using a Self-Select PIN as your signature.
• Complete information on what records you need, and how long to keep your records.

Step 2 - Choose the method of e-filing that works for you:

• Tax Professional
• Personal Computer
• Free File

Step 3 - e-file it!

Paid Preparer - If using a Tax Preparer, be sure to take all your information with you, and don't forget to ask for IRS e-file! Use our locator service to find an Authorized IRS e-file Provider nearest you.

Personal Computer - Those filing taxes online, just answer the simple questions in your tax preparation software, and the software will do the rest for you. For faster refunds, or to pay when YOU want to, have your bank account number handy.

Find an option that best fits your needs. It's easy…

• Visit our Free File web page
• Visit our IRS e-file Partners web page

Relax. You're done. Now SHARE - tell a family member or friend IRS e-file is the smart way to electronically file their federal and state income tax returns!

(via IRS)