Individuals who have an earned income of less than $30,000 per year now have another option when filing their tax returns.

The Free File Alliance, a collaboration Rep. Tom Latham, R-Iowa, deemed “highly innovative,” will provide low-income homes the opportunity to file both state and federal tax forms electronically.

Intuit – a software publisher best known for its products TurboTax and Quicken – has teamed up with the Internal Revenue Service as part of the Computer & Communication Industry Association to help provide a free service not just to those filing their taxes, but to the government as well.

Intuit started donating TurboTax to low-income consumers back in 1999, but after joining CCIA, things are at the next level.

Now, 650,000 Iowans will have the opportunity to file their taxes online at either the IRS Web site www.irs.gov or on Iowa’s Department of Revenue Web site www.iowa.gov/tax.

Latham, who made an appearance at the Scheman Building on Friday, spoke on behalf of the program, which helped nearly 97 million Americans file their taxes in 2007.

Latham stressed that 2008 is a bit different from past years when it comes to filing tax returns. Latham gave what he saw as the most important reason low-income individuals, including students, should want to file using the Free File Alliance as soon as possible.

“The one critical thing this year – why this is so important – is that with the economic stimulus package that we passed, people have to file [their taxes] to become eligible,” Latham said. “There is a real incentive for people to file this year, because that is how they become eligible for that rebate. I just applaud the folks with the alliance and the IRS for coming together and providing this extraordinary help.”

Christopher Long, a representative for CCIA, said applications such as the Free File Alliance are good ways to use today’s technology.

“We believe technology has the power to improve lives. These gifts are here and can be shared at no cost,” he said. “These companies who are normally out to make a great profit are now offering their services for free.”

By using Free File, taxpayers can speed up the refund process, a variable that could catch the attention of students. Latham said that when using the Free File Alliance, it only takes about seven to 12 days to obtain a tax refund.

During the press conference, it was made evident that the Free File Alliance had been established to help constituents, but Latham said that, on a national level, the Free File Alliance has one main objective.

“Helping the economy is the number-one goal,” he said.