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I used this service this year. I was eligible to file for free as a resident of VA using one FreeTaxUSA.com. The Wizard you can use to guide you to a service is great!

In terms of the W-2, you do not need to scan anything in. There is an area in the app that you use to enter all the information as it appears on your W-2.

its really a sweet service, you even get a fill-in 1040 form to print out for your records.
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