Intuit Expands Free Tax-Filing Program to States

Arizona is jumping on the free tax-filing bandwagon. Last Friday Gov. Janet Napolitano announced that the state had formed a public-private partnership with Intuit, Inc., which will allow qualified Arizona taxpayers to prepare and pay their state taxes electronically at no charge.

Arizona’s program is similar to the Free File Program, a partnership between the Internal Revenue Service (IRS) and 17 software makers. Intuit, which is also part of the federal software alliance, will be donating its TurboTax software for Arizona’s program. A company Web site has information for preparing and filing both federal and state returns. Arizona taxpayers who have an adjusted gross income of $27,000 or less and those who qualify for the federal Earned Income Credit are eligible for the state program.

Arizona launched the free program to encourage taxpayers to file electronically. The state has seen a dramatic rise in the number of tax returns being filed online. As of last week, the state reported that 530,000 individuals had filed tax returns electronically, an increase of 62 percent over last year. The state processes 2 million returns annually.

Arizona is the third state in the country to offer a free-filing program. It seems likely that others will follow for as Gov. Napolitano points out, “This partnership cost the state nothing and, in fact, will save the state a good deal." Intuit is the only software maker that offers free filing of state tax returns to qualified individuals.

On a national level, online tax filings have increased 9.9 percent so far this year. This rise can be attributed in part to the Free File program. Last week, AccountingWEB.com reported that 2 million taxpayers had filed their taxes through the program.

You may like these other stories...

Legislation coming out of Washington just might reduce homeowners' burden for disaster insurance. It's a topic very much on everyone's minds since the mudslide in Oso, Washington. The loss of human life was...
Divorce is hard, and the IRS isn't going to make it any easier. The IRS generally says "no" to tax deductions that might ease the pain of divorce. In certain circumstances, however, you might be able to salvage...
IRS chief: New rule on the way for tax-exempt groupsIRS Commissioner John Koskinen told the USA Today on Monday that the agency will likely rewrite a proposed rule regulating the political activities of nonprofit groups to...

Upcoming CPE Webinars

Apr 22
Is everyone at your organization meeting your client service expectations? Let client service expert, Kristen Rampe, CPA help you establish a reputation of top-tier service in every facet of your firm during this one hour webinar.
Apr 24
In this session Excel expert David Ringstrom, CPA introduces you to a powerful but underutilized macro feature in Excel.
Apr 25
This material focuses on the principles of accounting for non-profit organizations' revenues. It will include discussions of revenue recognition for cash and non-cash contributions as well as other revenues commonly received by non-profit organizations.
Apr 30
During the second session of a four-part series on Individual Leadership, the focus will be on time management- a critical success factor for effective leadership. Each person has 24 hours of time to spend each day; the key is making wise investments and knowing what investments yield the greatest return.