Online Tax Preparation and Filing FAQ

Frequently Asked Questions about Online Tax Preparation and Filing

Should I e-file state taxes as well as federal taxes?

Most people are required to file a federal tax return. If your income is low enough, you may not need to file a federal tax return, but you might still want to, in order to be eligible for refunds or credits. If your financial situation is fairly straightforward, many online tax preparation services will help you e-file your federal return for free, and only charge for e-filing your state tax return. If you live in Alaska, Nevada, South Dakota, Texas, Washington, Wyoming or Florida, you are not subject to state income taxes. If you live in New Hampshire or Tennessee, you only need to pay a state tax on interest and dividend income. 37 states and Washington D.C. allow you to e-file your state return at the same time that you file your federal tax return. If you live in California, Maine, Massachusetts or Minnesota, you can still e-file your state taxes, but you must do it directly through your state's Department of Revenue website. If you have taxable income in New Hampshire or Tennessee, you may also e-file through your state's Department of Revenue website.

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