Commercial online tax preparation and tax filing services, usually have a tax filing fee. In most cases, the fee is minimal and can save you a lot of money versus using a paid tax preparer.

However, there is a program developed through a partnership with the Internal Revenue Service (IRS) and a group of tax software companies called the Free File Alliance. With this program taxpayers may be eligible for free online tax filing. Since 2003, more than 15 million taxpayers have been able to file their taxes online for free.

In order to qualify for free online taxes you must meet one of these eligibility requirements.

* Your 2006 adjusted gross income (AGI) must be $28.000 or less. If your adjusted gross income is more that $28.000 you may not be eligible for free online tax filing. Or

* Any Military, Reservist, or National Guard member whose gross income (AGI) for 2006 is less than $52.000 qualifies for free online tax filing. Or

* If you qualify for the earned income credit (EIC) for tax year 2006 then you qualify for free Federal tax filing.

One of the major ways Free File differs from conventional tax filing is that Free File is an electronic tax program. You must use a computer and have Internet access to use the free tax filing service. Users enter data and tax calculations are made by the tax software. Completed tax returns are then sent to the Internal Revenue Service (IRS) through the efile system.

If you have a refund due, you can elect to have the amount direct-deposited into your bank account. If you owe money, then you can elect to have the amount debited from your bank account on the last day of tax filing season.