Many taxpayers can file their federal taxes for free, even if their tax situation includes deductions, credits, or self-employment income. The IRS offers Free File and Direct File programs, and several online tax services also provide free federal filing. Some states allow free state tax returns, depending on the service.
IRS Free File
The IRS partners with private tax software companies to offer Free File, which is available to those with an adjusted gross income (AGI) of $84,000 or less. Participating providers include TaxAct and TaxSlayer, though eligibility requirements and available forms vary by company. Some state returns are free, while others may require a fee. To qualify, taxpayers must choose a provider that matches their income and state filing needs.
If your AGI exceeds $84,000, the IRS still offers Free File Fillable Forms. However, these forms do not include state filing, offer no guided assistance, and require taxpayers to manually check their calculations before submitting.
IRS Direct File
IRS Direct File was introduced in 2024 as an alternative to commercial tax software. It allows taxpayers in 25 states to file their federal returns at no cost. The program has expanded to cover more deductions and credits, including child and dependent care expenses, health savings account distributions, and retirement savings contributions. It also includes the earned income tax credit and child tax credit.
While the program is expected to grow, it still has limitations. It does not yet cover all tax situations or all states, so some taxpayers may need to use other services.
Volunteer Tax Assistance Programs
For those who prefer in-person assistance, the IRS offers free tax preparation services through the Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs.
- VITA: Available to individuals earning less than $67,000, as well as people with disabilities and those with limited English proficiency. Volunteers are IRS-certified and assist with basic tax returns.
- TCE: Designed for individuals aged 60 and older, this program provides help with retirement-related tax questions.
To find a VITA or TCE site nearby, taxpayers can use the IRS VITA/TCE Locator Tool or call 800-906-9887.
Free Online Tax Filing Services
Several tax preparation companies offer free federal tax filing, with varying levels of state filing availability and support:
- Cash App Taxes: Provides free federal and state returns for all users. Requires the Cash App mobile app to access tax filing.
- FreeTaxUSA: Offers free federal filing, but state returns cost $15. Includes most necessary tax forms.
- H&R Block Free Online: Covers more tax forms than some competitors, including student loan interest and unemployment income. Free state filing is not included.
- TurboTax Free Edition: Only for simple 1040 returns with limited credits. Free state filing is not included.
- TaxSlayer Simply Free: Includes one federal and one state return, but does not support certain credits like the child tax credit or earned income tax credit.
- TaxAct Free: Supports unemployment income and key credits, but state filing costs $40.
What to Watch For
Many tax software providers advertise free filing but may charge fees for additional forms, live support, or state tax returns. Before starting, taxpayers should confirm that their chosen service covers their specific tax situation without requiring upgrades.
The best free tax filing option depends on individual needs. IRS programs work well for straightforward tax situations, while companies like H&R Block and Cash App Taxes offer more features. Checking eligibility and support options in advance can help taxpayers find the right service for their filing needs.
