Many Kentuckians can file state, federal taxes for free. Here’s how, plus extension info

Aaron Mudd

By the time you’re reading this, you’ll have less than a week to get your 2022 tax return to the Internal Revenue Service to avoid paying a penalty.

The key date for last-minute filers to submit state and federal tax returns is Tuesday, April 18. If you can’t meet that deadline, you’ll need to request a filing extension or risk a penalty and lose your refund.

That anxiety might have you running to quick fixes like TurboTax or Intuit, but you might not need to pay to file your taxes. Taxpayers who made $73,000 or less last year can file their federal tax return for free through the IRS. And if you made more than that, there are lost-cost ways to file your taxes online.

Through IRS Free File, you can get guided tax preparation from several companies in the industry. You may even be able to file your federal and state return for free. Here’s what to know if you’re doing your taxes at the last minute in Kentucky.

How to file your federal tax return for free

If your adjusted gross income, or AGI, was $73,000 or less in 2022, you can file your federal tax return for free through IRS Free File. In some cases, you may also be able to file your state return at no cost.

Alternatively, if your AGI was higher than $73,000, you can use freetaxusa.com, though you may need to pay $14.99 to file your state return depending on your income.

What is an IRS Free File and how does it work?

According to the IRS, the program is a public-private partnership between the agency and many tax companies who provide online tax preparation services for free.

Through IRS Free File, you can choose to participate in guided tax preparation by selecting the option on the agency’s website. You’ll next be shown various IRS Free File offers to choose from.

Documents you’ll need to file your taxes

Filing your taxes online through IRS Free File is fairly straightforward. The IRS Free File offer from TaxAct, for example, will prompt you to first create an account and answer a few basic questions about your marital status, income and other topics.

To make the process move faster, make sure you have several documents on hand. Here’s what you need to get started, according to the IRS:

  • A copy of your 2022 tax return with your AGI

  • Social Security numbers for yourself, your spouse and any dependents

  • Social Security benefits receipts

  • Unemployment compensation receipts

  • All receipts pertaining to your small business, if applicable

  • Income receipts from rental, real estate, royalties, partnerships, S corporation, trusts, etc.

  • Your W-2, documenting your annual wages from all of your employers

  • Form 1099-INT, showing any interest paid to you throughout the year

  • Form 1099-G, including any refund, credit or offset of state and local taxes

  • Forms 1099-DIV and 1099-R, showing dividends and distributions from retirement and other plans paid to you during the year

Affordable Care Act filers will need the following information:

Here’s some things to know when filing electronically:

  • When self-preparing your taxes and filing electronically, you must sign and validate your electronic tax return. To verify your identity, you can use last year’s AGI or last year’s self-select signature personal identification number (PIN). To sign your electronic tax return, use a five-digit self-select PIN, any five numbers (except all zeros) as your electronic signature.

  • If you are unable to access your online account, you can get a tax return transcript by mail showing your prior year AGI.

  • Be sure to set up your tax refund to deposit directly into your bank account. This is much faster and safer than the conventional by-mail option. The IRS advises those who do not have a bank account to visit either the Federal Deposit Insurance Corp.’s website or the National Credit Union Administration and use its Credit Union Locator Tool. The tool helps you find a bank or credit union to open an account online.

What if I don’t know what I made last year or have a prior tax return on hand?

You can find this information by signing into your IRS account. That account will have your tax records, including the most recent tax return the IRS has for you and your AGI.

If you haven’t already created an account, you’ll be asked to submit photos of your driver’s license (or other identification like a state ID or U.S. passport) and take a short video selfie of yourself during which the IRS will scan your biometric data. The process is designed to be secure and these materials will be deleted after review, according to the IRS.

How can I file my taxes online in Kentucky?

If the IRS Free File offer you select doesn’t offer filing for state-level tax returns in Kentucky, and you can’t or don’t want to pay the filing fee, you have two other options.

First, you might qualify for Kentucky’s own free file program if you meet the income threshold. To qualify, your income must be $69,000 or less, according to the Kentucky Department of Revenue. Some offers might require you to file your state tax return and federal return simultaneously.

You can check if you qualify for Kentucky’s free file program online.

The other route is to use the Kentucky File program. This option offers you a bare-bones way to file your state tax return. It’s a simple, online version of the paper forms. The catch is it doesn’t check for errors or hold your hand like other filing software does. It does handle some simple calculations for you, however.

If you think this option works for you, you can access the program on the Kentucky Department of Revenue’s website. If you have further questions, visit Kentucky File’s frequently asked questions page.

Additionally, you’ll need to file your federal tax return before you use Kentucky File to get your state return squared away.

Go ahead and request a filing extension if you need it

If all else fails, filers have until the April deadline to request an extension, which will give them until mid-October complete their returns.

That said, it’s important to note this is only an extension for filing your taxes, not paying them. Tax filers must, at a minimum, estimate their tax liability and pay as much as they can by the filing deadline April 18.

Otherwise, they face stiff penalties and interest on the taxes they owe.

Do you have a question about tax season in Kentucky for our service journalism team? We’d like to hear from you. Fill out our Know Your Kentucky form or email ask@herald-leader.com.

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