Hurrah! Mid and lower-income taxpayers can file their return free of charge. The Internal Revenue Service started its 2007free file program. 17 sites will provide this facility with tax software giants TurboTax and H&R Block to less prominent services such as CitizenTax.com and Average1040.com, to those who’s an adjusted gross income (AGI) of $52,000 or less will be able to prepare and file their taxes electronically for free through the Free File program. But all taxpayers can not file there return through any of the participating tax prep services: Each one sets its own requirements. Restrictions TurboTax’s Free File service, called TurboTax Freedom Edition, will provide free service only if you have an AGI of $27,000 or less, or you are Active Duty Military with a military W-2 and your AGI is less than $52,000. Complete Tax sets an AGI limit of $29,000; some tax prep service provider set a different age limit and few offer their service in Spanish 95 million taxpayers expected to eligible for free file this year, but history shows that very few get benefit out of it. Last year 3.9million taxpayer out of 93million used it. How to start To file the return either you browse through the list of participating companies or use the wizard. You have to fill a form in which you enter your name, age, your spouse’s name and age, your estimated 2006 AGI, your state of residence, information on your Earned Income Credit eligibility, and whether you received military pay. When you submit the form, you get back a list of Free File participants whose requirements you meet. It is very simple. No Refund Advance Loans One thing is missing in Free File services this year is refund anticipation loans, in which tax prep services partner with financial institutions to immediately give customers the amount of any expected refund in a successfully filed electronic return–minus a hefty interest fee because of complaints by consumer. Now in its fifth year, the Free File program is part of a government effort to encourage people to prepare and file their taxes electronically. E-filing saves the IRS money; the error rate in returns filed electronically is 1 percent, compared to 20 percent in returns filed on paper