This tax season, over 140 million Americans are expected to file individual tax returns, and many of them qualify for a little-known, cost-free filing option. The IRS Free File program, a collaboration between the Internal Revenue Service and the Free File Alliance, provides eligible taxpayers with a convenient and accessible way to prepare and file their taxes online.
“This program continues to be a valuable resource for eligible individuals looking to file their taxes for free,” said former IRS Commissioner Danny Werfel.
Eligibility for IRS Free File
The IRS Free File program is available to taxpayers with an adjusted gross income (AGI) of $84,000 or less in 2024. The AGI is calculated by subtracting certain tax deductions from total gross income and is listed on Line 11 of the 2024 tax return.
Key features of the program include:
- Guided Free File options for those earning $84,000 or less.
- Free Fillable Forms, an electronic version of paper-filed returns, available for all income levels.
While the program is open to a majority of taxpayers, each participating partner company may have specific eligibility criteria, such as age, residency, income, or military status. Some partners even offer free state tax return filing.
Not Just for Simple Tax Returns
Despite its benefits, IRS Free File is underutilized, with only a fraction of eligible taxpayers taking advantage of it. Tim Hugo, executive director of the Free File Alliance, emphasized that the program isn’t limited to simple tax returns.
“There are eight software partners for 2024 filings, and each must accept the most commonly used tax forms and schedules,” Hugo explained. These include:
- Schedule A for itemized deductions.
- Schedule B for investment earnings.
- Schedule C for self-employed taxpayers.
The program officially opened on January 10, 2025, with e-filing available through Free File partners starting January 27.
A Valuable Resource for Taxpayers
The IRS Free File program has steadily gained traction, processing 2.9 million returns by May 11, 2024—a 7.3% increase from the previous year.
“This program continues to be a valuable resource for eligible individuals,” Werfel reiterated. Its continued success has also prompted the IRS to extend the Free File partnership through 2029, ensuring that millions of Americans can benefit from this service for years to come.
Spreading Awareness About IRS Free File
Despite its advantages, the program remains underutilized. “It’s kind of like a hidden gem in the forest,” Hugo said. “We just need more people to know about it.” As more taxpayers become aware of this cost-effective option, the IRS Free File program is poised to help millions save both time and money during tax season.
