UPDATED FOR 2014: Free Tax Preparation for Military Active duty, reserve and National Guard service members and their families can access H&R Block's Block at Home (formerly Tax Cut) online tax preparation service for free via Military OneSource. You must use the link at the Military OneSource page to access the customized Block at Home product - don't go through the regular H&R Block website. In addition, you can get free telephone consultations with tax preparers by calling 1-800-730-3802. The Block at Home Basic, which is good for most people, is free. There is an additional charge for the Premium version, which helps with rental property, small businesses, and other more complicated issues. You can also use the free Basic version to file up to three state returns.
In addition to this service, your local installation probably has Volunteer Income Tax Assistance (VITA) available. You can check with your family support center or legal office to locate the VITA service.