This free tax filing option is 'fast and simple,' IRS says. Here's who can use it Here's how to know if you qualify
Roughly 70% of taxpayers are eligible for IRS Free File
This season, the IRS expects more than 140 million individual tax returns — and most qualify for a lesser-known free tax filing option.
The program, IRS Free File, is a public-private partnership between the agency and the Free File Alliance, a nonprofit coalition of tax software companies.
"Over the years, Free File has helped millions of taxpayers, providing a fast and simple way to file their returns," former IRS Commissioner Danny Werfel said in a press release in early January.
More from Personal Finance:
IRS' free Direct File program expands to 25 states — but faces scrutiny
'The end of an era': Biden announces final round of student loan forgiveness
California wildfire victims may qualify for one-time $770 payment
How to qualify for IRS Free File
For the 2025 season, you can use IRS Free File if your adjusted gross income, or AGI, was $84,000 or less in 2024.
You calculate AGI by subtracting certain tax breaks from your total, or gross income. The figure will be line 11 on the front page of your 2024 tax return.
While there are guided Free File options for anyone who made $84,000 or less for 2024, each partner has different eligibility, depending on your age, income, state residency and military status.
Some partners also offer free state tax returns, Hugo said. You can browse all eight partners here.
The program also offers Free Fillable Forms, which is the electronic version of a paper-filed return, for taxpayers at all income levels.
Free File 'not just for simple returns'
Roughly 70% of taxpayers qualify for IRS Free File, but only a fraction of eligible filers use the software, according to Tim Hugo, executive director of the Free File Alliance.
"It's not just for simple returns," he said.
There are eight software partners for 2024 filings and each must accept the most commonly used tax forms and schedules, Hugo explained.
Some of these include Schedule A for itemized deductions, Schedules B and D for investment earnings and Schedule C for self-employed filers, among others.
The program opened on Jan. 10 and taxpayers can e-file returns prepared through Free File partners starting on Jan. 27, according to the IRS.
Free File remains a 'valuable resource'
During the 2024 season, Free File processed 2.9 million returns through May 11, a 7.3% jump compared to the same period in 2023, according to the IRS.
"This program continues to be a valuable resource for eligible individuals looking to file their taxes for free through this unique program," Werfel said.
Although the agency launched Direct File, its own free tax filing service, the IRS in May announced an extension of the Free File program through 2029.
"It's kind of like a hidden gem in the forest," said Hugo. "We just need more people to know about it."
This story originally appeared on: CNBC - Author:Kate Dore, CFP®, EA
