IRS program can find savings, which can be used to pay off debt

01/21/2010

Some consumers may be waiting for the tax return when it comes to their plans to pay off debt.

However, filing out taxes can not only be time consuming, it can also be complicated. With that in mind, the Internal Revenue Service recently announced that some consumers may be able to file for free while also getting tax advice.

Through a partnership with the Free File Alliance, the IRS is making the Free File program available for people who meet certain income requirements. People who earn less than $57,000 can qualify for free tax advice through the department's website.

"There's something there for almost everybody," David Williams, director of the Electronic Tax Administration and Refundable Credits, said of the IRS website.

Through the Free File program, people filing out taxes can use step-by-step software to help fill out their taxes. The program asks the filer questions and can point out tax credits they might miss otherwise.

As a result, tax payers may end up getting a bigger chuck of their cash from the government, which they could use to pay off debt. For example, the Earned Income Tax Credit was recently expanded, which could lead to some savings for consumers when paying taxes.

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