Beginning today, most taxpayers can start filing their 2007 tax returns electronically. That’s good news for Iowans, who led the nation last year in e-filing. David Williams is the Director of the Internal Revenue Service Tax Administration and Refundable Credits Division.
"Seventy-two percent of taxpayers last year filed electronically in Iowa and we think that’s great," Williams told Radio Iowa. He says e-filing cuts down on both errors and paper use, and taxpayers can get their refund direct deposited in just 10 days. E-filing is also free for 7 out of 10 Iowans.
"If you make $54,000 or less, that’s about 97 million Americans, you’re eligible to use something called IRS Free File," Williams says. The program, that includes 19 different software packages, is only available through the IRS website. Some taxpayers will have to wait until at least February 11 to file their tax returns. That’s because of changes to the Alternative Minimum Tax.
The IRS is still reprogramming it’s systems to conform with the new legislation, which affects five different credit forms that will be filed by roughly 13.5 million taxpayers. "However, when you look at how many would have filed by the time we’ll be able to process the returns," Williams says, "we estimate that only about three million will actually be affected by the AMT legislation."
There are several ways Iowa taxpayers can learn more about the AMT situation. Williams says your tax software or tax preparer should make it clear if you’re affect by AMT or you can find out online at the IRS website . Low to moderate income taxpayers who want to e-file for free, can get help preparing their return by visiting a Volunteer Income Tax Assistance (VITA) site in their local community.