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(ARA) - If you don't want to prepare your taxes by hand and are looking for an affordable online solution, good news. There's a Web-based software option available that will enable you to prepare, print and e-file your 2007 federal tax return, and it won't cost you a penny.

An agreement forged between the IRS and a consortium of private-sector Web-based tax preparation companies (collectively known as the Free File Alliance, or Alliance), makes it possible for millions of taxpayers to file their federal return online via IRS.gov at no cost.

The agreement contributes to the IRS' goal to convert paper filers to e-filers. However, there are limitations regarding who can utilize one of the free online software offers available through the IRS' Free File Program.

For 2008, taxpayers filing their 2007 tax return qualify to use Free File providing their Adjusted Gross Income (AGI) does not exceed $54,000. Approximately 70 percent of the nation's taxpayers, approximately 95 million people, fall into this category.

Yet, the question remains: Can't taxpayers with an AGI greater than $54,000 benefit from free online tax preparation and e-filing services too? "There's a significant segment of taxpayers who have average to above average earnings who could reap benefits from Free File. On paper, these households may seemingly have an affluent lifestyle. Yet, more often is the case these households are making ends meet by adhering to a rigid, carefully crafted budget," says 2nd Story Software spokesperson, Stephanie Behrends.

Taxpayers who are interested in determining what offers they may qualify for via the Free File Program should visit www.IRS.gov. Even so, consumers are encouraged to weigh their options carefully and should be aware that many companies participating in the Alliance place restrictions on the type of income and deductions taxpayers can claim while using the Free File Program.

If you do not qualify for any of the IRS Free File offers (or you want to forego the laborious process of determining which of the 19 offers you may qualify for), all taxpayers filing an individual Federal income tax return can use TaxACT Standard at no cost via www.TaxACT.com.

"The heritage of our company is to make electronic tax preparation as easy and inexpensive as possible — simplifying the tax preparation process for millions of taxpayers while helping our customers to keep more of their hard-earned money," adds Behrends.