2008 tax software - Save big on filing your taxes with a little research.

Hoping for a big refund in 2008 to make up for the sluggish economy? You'll need to file your 2008 taxes first, and with the tax laws as complex as they are, most of us are hoping to use tax software to compute and file our taxes online. Tax software guides you through the process of filing by asking questions, rather than filling out forms. And, the best software will help you find deductions you might have missed, and can also tell you if you've done anything that might flag you for an audit. In short, it's almost silly these days to file without using software.

Aside from the biggest player, TurboTax, there are other options that might save you money.  Up to about $50 on the software alone! And, if you meet the federal income guidelines you can even get free tax software as well as free electronic filing.

We scoured the internet to find the greatest tips and advice to figure out your taxes and file them electronically...without breaking the bank.

For those with somewhat complex returns that include itemized deductions

Starting with filing your return...did you have a little sticker shock from the list prices for tax preparation software? TurboTax, the most popular package, is $29.95 for the Deluxe package, plus an additional $34.95 for state.  That's $64.90, a fair price for a good product, but the cost starts you out in the hole already.  There are other options though:

 For those of you with simpler returns that don't itemize deductions:

If you don't have investments, own a home, or itemize deductions, you have a lot of great, inexpensive choices.  And, you can even qualify for free electronic filing if your gross income is $56,000 or less.

A great place to start is with the IRS's guide to free filing.  This will lead you through a set of questions and pair you with a company that offers free online tax preparation software, and if you meet the requirements, free electronic filing as well.

If you want to choose a company yourself, here's an extensive list of providers that offer free online tax software and filing:

Popular Choices:

TurboTax® Freedom Edition: Free federal tax preparation and e-filing if your adjusted gross income (AGI) is $30,000 or less or if  you are active member of the military or you qualify for Earned Income Tax Credit.  Also Includes Form 982 (Mortgage Forgiveness Debt Relief).

Free TaxACT: Free online federal tax preparation and e-filing if your adjusted gross income (AGI)  is $56,000 or less and your age is 19- 55 years . Also includes Form 982 (Mortgage Forgiveness Debt Relief).

H&R Block's TaxCut Free File: Free online federal tax preparation and e-file if your adjusted gross income (AGI) is $56,000 or less and you are 50 years of age or younger. Also includes Form 982 (Mortgage Forgiveness Debt Relief).

Other Choices:

1040NOW.NET: Free federal tax preparation and e-file if your AGI is between $5,000 and $56,000 and you live in the following states: AL, AR, AZ, CA, CO, CT, DC, DE, GA, HI, IA, ID, IL, IN, KS, KY, LA, MA, MD, ME, MI, MN, MO, MS, MT, NC, ND, NE, NJ, NM, NY, OH, OK, OR, PA, RI, SC, UT, VA, VT, WI, or WV. Includes Form 982 (Mortgage Forgiveness Debt Relief).

123Easytaxfiling: Free federal tax preparation and e-file if your adjusted gross income is $56,000 or less and you live in the following states: AL, AR, AZ, CA, CO, CT, GA, IA, IL, IN, KS, KY, LA, MA, MD, MI, MN, MO, NC, NE, NJ, NY, OH, OK, OR, PA, SC, VA, WI, or WV.

CitizenTax: Free federal online preparation if your adjusted gross income is $56,000 or less, you are age 50 or younger and live in the following states: AL, AR, AZ, CA, CO, CT, DE, FL, GA, HI, IA, ID, IL, IN, KS, KY, LA, MA, MD, ME, MI, MN, MO, MS, MT, NC, ND, NE, NJ, NM, NY, OH, OK, OR, PA, RI, SC, TN, TX, UT, VA, VT, WI or WV.

CompleteTax: Free federal tax preparation and e-file if your Adjusted Gross Income is $31,000 or less.

EfileTaxReturns.net: Free federal preparation and e-file if your adjusted gross income is between $5,000 and $56,000, and you live in the following states: AL, AR, AZ, CA, CO, CT, DE, GA, HI, IA, ID, IL, IN, KS, KY, LA, MA, MD, ME, MN, MO, MS, MT, NC, ND, NE, NH, NJ, NM, NY, OH, OK, OR, PA, RI, SC, SD, UT, VA, VT, WI or WV.

eSmartTax From Liberty Tax Service: Free Federal online tax preparation and e-File if your adjusted gross income is $56,000 or less, and you are age 50 or younger. Includes Form 982 (Mortgage Forgiveness Debt Relief). En Español.

ezTaxReturn.com: Free Federal tax preparation and e-file if your Adjusted Gross Income is $56,000 or less and you live in the following states: AL, AR, AZ, CA, GA, IL, LA, MA, MI, MS, NC, NJ, NY, OH, PA, VA, or WI.

FileYourTaxes.com: Free federal tax preparation if your Adjusted Gross Income is $56,000 or less and you are aged 17 to 60 and you live in the following states: AL, AR, AZ, CA, CO, DE, FL, GA, IA, ID, IL, IN, KS, KY, LA, MD, MI, MN, MO, MS, NC, NE, NJ, NM, NV, NY, OH, OK, OR, TX, UT, VA, WA, or WI. Includes Form 982 (Mortgage Forgiveness Debt Relief).

Free1040TaxReturn.com: Free federal tax preparation and e-file if your adjusted gross income is $56,000 or less and you are age 85 or younger and you live in one of the following states: AR, AZ, CA,CT, CO, DE, GA, IA, IL, IN, KS, KY, LA, MA, MD, MI, MN, MO, MS, NC, NE, NJ, NY, OH, OK, PA, SC, UT, VA, WI, or WV.

FREE TAX RETURN: Free federal tax preparation and e-file if your adjusted gross income is $56,000 or less and you live in the following states: AK, AZ, CA, CO, DC, DE, HI, GA, IA, ID, IL, IN, KS, KY, LA, MA, MI, MN, MT, NC, ND, NE, NH, NM, NV, NY, OH, OR, PA, RI, SC, SD, TN, UT, VA, VT, WI, WV, or WY.

FreeTaxUSA.com: Free federal tax preparation and e-file if your adjusted gross income is $56,000 or less and you live in the following states: AL, AZ, CA, CO, CT, DE, GA, IA, ID, IL, IN, KS, KY, LA, MD, MI, MO, MS, NC, NE, NJ, NM, NY, OH, OK, OR, PA, SC, UT, VA, or WV. Includes Form 982 (Mortgage Forgiveness Debt Relief).

I-CAN!® Free File: Free federal tax preparation and e-file if your adjusted gross income is $30,000 or less or you qualify for the Earned Income Tax Credit. Available in Spanish (En Español).

ISECURETAX® Free File: Free federal tax preparation and e-file if your AGI is $56,000 or less and you live in the following states: AL, AR, AZ, CA, CO, CT, DC, DE, GA, HI, IA, ID, IL, IN, KS, KY, LA, MA, MD, ME, MI, MN, MO, MS, MT, NC, ND, NE, NJ, NM, NY, OH, OK, OR, PA, RI, SC, UT, VA, VT, WI, or WV and you are age 71 or younger.

OnLine Taxes @ OLT.com: Free federal tax preparation and e-file if your adjusted gross income is $56,000 or less and you are age 50 or younger. Includes Form 982 (Mortgage Forgiveness Debt Relief).

OnlineTaxPros.com: Free federal tax preparation and e-file if your adjusted gross income is between $11,000 to $56,000. En Español.

TAX$IMPLE Ultimate Version: Free federal tax preparation and e-file if you are age 66 or less and you live in the following states: AL, AR, AZ, CA, CO, CT, DC, DE, HI, GA, IA, ID, IL, IN, KS, LA, MA, MD, ME, MI, MN, MO, MS, MT, NC, ND, NE, NH, NJ, NM, NY, OH, OK, OR, PA, RI, SC, SD, TN, UT, VA, VT, WI, WV, or WY. Includes Form 982 (Mortgage Forgiveness Debt Relief).

TaxSlayer.com

: Free Federal tax return preparation and e-file if your AGI is $56,000 or less and you are age 25 or younger or 65 or older or you are active Military or if you qualify for the Earned Income Tax Credit or if your AGI is $10,000 or less regardless of age. Includes Form 982 (Mortgage Forgiveness Debt Relief).

Quick reference for the state abbreviations shown above:

ALABAMA           AL
ALASKA            AK
AMERICAN SAMOA    AS
ARIZONA           AZ
ARKANSAS          AR
CALIFORNIA        CA
COLORADO          CO
CONNECTICUT       CT
DELAWARE          DE
DISTRICT COLUMBIA DC
FLORIDA           FL
GEORGIA           GA
GUAM              GU
HAWAII            HI
IDAHO             ID
ILLINOIS          IL
INDIANA           IN
IOWA              IA
KANSAS            KS

KENTUCKY          KY
LOUISIANA         LA
MAINE             ME
MARSHALL ISLANDS  MH
MARYLAND          MD
MASSACHUSETTS     MA
MICHIGAN          MI
MINNESOTA         MN
MISSISSIPPI       MS
MISSOURI          MO
MONTANA           MT
NEBRASKA          NE
NEVADA            NV
NEW HAMPSHIRE     NH
NEW JERSEY        NJ
NEW MEXICO        NM
NEW YORK          NY
NORTH CAROLINA    NC
NORTH DAKOTA      ND

OHIO              OH
OKLAHOMA          OK
OREGON            OR
PENNSYLVANIA      PA
PUERTO RICO       PR
RHODE ISLAND      RI
SOUTH CAROLINA    SC
SOUTH DAKOTA      SD
TENNESSEE         TN
TEXAS             TX
UTAH              UT
VERMONT           VT
VIRGIN ISLANDS    VI
VIRGINIA          VA
WASHINGTON        WA
WEST VIRGINIA     WV
WISCONSIN         WI
WYOMING           WY