IRS Free File: 70%+ Taxpayers Eligible – Guide to Free E-Filing
The Internal Revenue Service is broadening access to its established free tax filing initiative through partnerships with private companies.
Entering its 24th season this year, IRS Free File provides millions of U.S. residents with complimentary guided tax preparation tools. Individuals whose adjusted gross income (AGI) does not exceed $89,000 now have the opportunity to submit their federal income tax returns electronically without any charge.
This recent adjustment raises the income threshold by $5,000 compared to the previous year, representing one of the most substantial yearly expansions in the program’s long history. Ordinarily, such limits increase by just $1,000 to $2,000 annually, if they shift at all. In recent times, however, the IRS has implemented significant boosts ranging from $5,000 to $6,000, allowing numerous Americans to access these services for the very first time.
According to the Free File Alliance—a group comprising tax preparation firms collaborating with the IRS—over 70% of taxpayers now meet the criteria for IRS Free File. Even with this extensive reach, the program sees limited adoption, as less than 3% of eligible filers utilize it annually.
Tim Hugo, executive director of the Free File Alliance, addressed a prevalent myth in a recent press statement: “People often believe that Free File is restricted to the simplest tax situations. In truth, numerous individuals with more complex filings can still take advantage of it at no cost.”
Hugo highlighted examples such as small business proprietors, independent contractors in the gig economy, and property owners managing several rental units, all of whom may qualify provided their AGI stays under the designated limit.
It is important to distinguish IRS Free File from the IRS’s discontinued Direct File pilot, which explored government-operated tax software.
How to Utilize IRS Free File
For the current tax season, eight trusted providers are delivering their comprehensive guided tax software at no expense to those who qualify:
- 1040.com
- 1040Now
- FileYourTaxes.com
- FreeTaxUSA
- OLT.com (OnLine Taxes)
- TaxAct
- TaxSlayer
- ezTaxReturn.com
Certain providers impose additional criteria, such as specific income levels, military affiliation, or age restrictions. Nevertheless, anyone adhering to the $89,000 AGI ceiling will find at least one suitable provider available.
Prior to beginning the process, confirm your eligibility to avoid incomplete submissions. Some platforms permit initial data entry but may disqualify users later based on unique rules. Comprehensive eligibility information can be reviewed through official channels, and the IRS provides a convenient lookup tool to match your circumstances with the best filing partner.
A key advantage of IRS Free File lies in its protections: the participating companies are prohibited from offering paid upgrades during the filing or promoting refund anticipation loans—practices common among non-partnered tax services that generate significant revenue.
After selecting a provider, proceed by following the on-screen instructions and entering details from your various tax documents, such as W-2s, 1099s, and others relevant to your situation.
Many of these services extend free preparation for state returns as well, though availability varies by provider and location. Notably, OLT and FreeTaxUSA provide complimentary state filing across all states for users who satisfy the federal AGI requirements, streamlining the entire process.
Alternative Free Tax Filing Methods
Taxpayers exceeding the $89,000 AGI limit can still leverage elements of the Free File program, albeit through a distinct approach. The IRS maintains Free File Fillable Forms, accessible to individuals regardless of income.
These digital forms require manual completion following detailed instructions, with minimal automated calculations—users must perform their own arithmetic. Upon finishing, options include electronic submission or printing, signing, and mailing the forms to the IRS.
Even if IRS Free File is not an option, various external providers offer no-cost filing opportunities tailored to different profiles. Exploring these can uncover viable paths to free tax submission.
This year, federal tax returns must be filed by April 15, irrespective of income level. Several states maintain independent due dates for their resident returns, so checking local guidelines is advisable to ensure compliance and avoid penalties.
