Free taxation assistance for seniors low income troops and more</title>

How often do you see real passion when it comes to tax preparation? Meet Dr. Edward Kane of Venice, Fla.

Kane is one of more than 34,000 AARP Tax-Aide volunteers. This retired orthodontist was introduced to the Tax-Aide program 17 years ago at his church in Pacific Beach, Calif. Kane reviews the tax returns others prepare and takes fliers to local businesses, religious institutions and libraries to spread the word about the free tax services available to seniors and low- and moderate-income taxpayers.

AARP"s Tax-Aide has 6,500 centers nationwide, helping more than 2.5 million taxpayers. They"re part of a network of volunteer-staffed free services supported by the Internal Revenue Service. The IRS oversees two programs -- the Volunteer Income Tax Assistance (VITA) program and Tax Counseling for the Elderly (TCE) -- with walk-in sites in neighborhoods nationwide.

You can find the TCE and VITA sites in colleges, churches, libraries, community centers and large mobile home parks, Kane said. There are so many that you can probably find one within walking distance of your home. The beauty of the VITA and TCE sites is that you get to work with trained volunteers who must pass a rigorous test every year. You are face-to-face with folks who can answer your questions, give you guidance and e-file your tax returns. You don"t have to wait on hold or for an e-mail to get an answer. Volunteers often come back to the program, so you"re apt to see the same people year after year.

For military personnel, the Armed Forces Tax Council provides assistance on bases and in combat zones. Council staff members are trained to deal with the specific issues facing active military personnel and their spouses. There are tax-program coordinators for the Army, Air Force, Navy, Marine Corps and Coast Guard.

To find a site near you, call the IRS at 1-800-906-9887 or AARP at 1-888-227-7669.The Free File Alliance The IRS established the Free File Alliance to increase taxpayer participation in the e-filing program. Taxpayers with adjusted gross income up to $57,000 can use the standard Free File options this year -- that adds up to 70% of all taxpayers. That means more than 109 million people should be able to prepare their own federal tax returns for free.

Yet since the inception of Free File in 2002, only 27 million taxpayers have taken advantage of this free program, according to the IRS. That boils down to fewer than 4 million participants a year, less than 4% of the eligible population.

Become a tax volunteer

Perhaps it"s time for you to explore this option. This can be a real boon to students and seniors who don"t have complicated tax returns. Also, many of the Free File Alliance members offer free filing to members of the military. You"ll find links to the 20 participating companies on the IRS Free File site.

Companies have different income limits and forms they will process under this program. You can analyze the offerings yourself or have the IRS take you through a QA session to help you find the companies that cater to your income, age and tax complexity level.

The maximum age to use the free service ranges from the 50s to the 70s. Top income ranges from as low as $23,000 at iSecureTax, $31,000 for the TurboTax Freedom Edition and $32,000 at CompleteTax -- to as high as $57,000 at nearly all the other services.

Some of them will provide a free extension come April. Others don"t even address the question. See a previous TaxWatch article for more about paid services available through five top tax-prep sites.

Many company programs, such as TaxAct and HR Block"s Free File, will support all states.

Others will only support the states listed. They don"t all support the same forms. To determine which tax forms and schedules they accept, you need to go to each company"s site. Or save time by using the IRS QA tool to narrow down your choices. There"s free, and then there"s free Why don"t more people use the Free File Alliance services? While the federal filing is free, you may be charged a fee to process your state return. Also, you won"t get the same level of service and support that you get from the same company using the free services on its own site. Believe it or not, many Free File members offer a free service of their own, unrelated to the service they offer in the Free File program.

Generally, using the free services on the company"s site, you"ll be able to roll over the previous year"s tax file to the current year. And more companies have created community forums to field frequently asked questions and to build a searchable database of more-esoteric questions. Those are not available to Free File users.

When you start with the vendor"s own free service, you can easily upgrade the level of your tax return, based on the forms and complexity of your return as you go along. Sometimes when you start out, you think you have a simple tax return. Then you find Form 1099s for dividends that foreign taxes deducted, or you discover that the credit card company sent you a 1099 because you convinced them to write off your balance, or . . .

When these things happen, you can"t upgrade the Free File Alliance tax return to a more complex paid return. You have to go to the main Web site and start your entries all over again. So, unless you have the simplest of tax returns, you may find yourself better off starting with the free offerings on a company"s site.

The do-it-yourself approach