Free e-file Options Now Available for More Minnesota Taxpayers than Ever Before

ST. PAUL, Minn., Feb. 15 /PRNewswire/ -- More than 1.5 million Minnesotans filed their 2004 tax returns electronically. This year, more than 70 percent of Minnesota taxpayers can now prepare and file their income taxes for free by visiting the Minnesota Department of Revenue Web site, revenue officials announced today.

Those who qualify for free e-filing are taxpayers who, in 2005:
-- Have adjusted gross incomes between $10,000 and $50,000;
-- Qualified for the federal Earned Income Tax Credit;
-- Are active-duty members of the military, with a W-2 from the military
and an adjusted gross income of less than $50,000.
-- 25 years old or younger
-- 68 years old or older

For taxpayers who do not meet one of these requirements, there are options as low as $9.95.

"This year many more Minnesotans will be able to prepare and e-file their taxes for free or at very low cost," said Department of Revenue Commissioner Dan Salomone. "For accuracy, fast refunds and peace of mind, there's just nothing better than e-filing, especially when it's free."

Taxpayers can find out if they qualify for free e-filing, or to find a low-cost option that works for their tax situation by visiting the department's Web site at http://www.taxes.state.mn.us/ .

Taxpayers must go to this Web site to find an Internet software provider that provides the free or low-cost electronic filing services for both federal and Minnesota returns. It's important to note that people who do not access the software through the Minnesota Department of Revenue Web site may not be eligible for the free filing.

So, why e-file?

Taxpayers expecting a refund will get refunds faster with e-file. Last year 97 percent of taxpayers received their Minnesota refund within five days.

Paper returns take up to 30 days until April 1. After that, it could be up to 90 days. If taxpayers have a balance due, they can even use the e-filing software to file now and pay automatically on the due date.

E-filing is easier and faster than filling out a paper return. Most tax preparation software asks questions and uses taxpayers' answers to fill in the returns. It does the preparing and the calculating and finds all credits for which you qualify. The software ensures that your return is free from mathematical errors. Taxpayers need only to enter the information from their tax documents such as W2s and 1099s.

Other ways to e-file

Taxpayers may also e-file by buying tax preparation software for their computers and transmitting the returns via their internet service. Taxpayers using tax preparers may ask those individuals to e-file for them. Many tax preparers are already required by the state to e-file the returns they prepare.

The Minnesota Department of Revenue expects about 2.4 million income tax returns this year, and estimates that as many as 70 percent of those could be electronically filed. Last year, the department received about 63 percent of returns electronically. That success made Minnesota a leader in the nation for the percentage of population that e-filed.

Filing requirements

Taxpayers must file a Minnesota income tax return if they are a Minnesota resident and are required to file a federal income tax return, or if they are a part-year resident or nonresident of Minnesota with a Minnesota gross income of $8,200 or more.

Resources

Individuals with tax questions can find an abundance of information on the Department of Revenue's Web site at http://www.taxes.state.mn.us/ . Updated fact sheets, forms, contact information and answers to frequently asked questions are all available.

For elderly, disabled and low-income taxpayers, volunteer tax assistance sites offer completely free tax assistance for those who qualify; visit http://www.taxes.state.mn.us/ or call 651-297-3724 to find one near you.

Additionally, The Minnesota Department of Revenue taxpayer assistance line at 651-296-3781 is staffed from 9 a.m. to 5 p.m., Monday through Thursday, and 9 a.m. to noon on Fridays.