The Status of filing is an important factor when computing taxable income under the Federal Income tax in related taxable year of your income. The correct amount of tax can be determined whether you can take certain tax deductions or exemptions that could lower your final tax bill and even whether you must file a return at all.

The US government declared an Easy Efile tax Preparation and Easy Efile Tax filing systems in the year 2003 for US taxpayer. The tax filing and preparation system declared for the purpose of free tax filing. It is easy to use and simple to understand through the medium of internet connection. The availability of easy internet services with lower price rates, the number of people filing their taxes online. Millions of users each year join to file their taxes online with the help of Free Efile Tax Facility.

Through a partnership between the Internal Revenue Service (IRS) and tax software companies, lower income taxpayers are now able to file taxes online for free. This partnership is known as the Free File Alliance. Because of an agreement with the (IRS), this free tax filing program is available to those taxpayers who are eligible for one of the conditions mentioned below:

The taxpayers who have AGI i.e. Adjusted Gross Income in the year 2008-09 are $28,000 or less than that are eligible for free online tax file.

Any Military or Reservist or National Guard Member whose AGI i.e. Adjusted Gross Income in the year 2008-09 is less than $52,000 is qualify for Free Efile Tax.

If the taxpayer have Earned Income Credit i.e. EIC and qualify for EIC for the year 2008-09 is qualify for Free Efile Taxes Facility.

The Free File Alliance makes free tax filing online available to taxpayers who meet certain eligibility requirements set forth at the beginning of each new tax season. In addition, twenty-one states have also created free income tax filing programs based on the Federal free tax filing program. This means you may also qualify to file your State Taxes Online for free with the Tax Software.