There is a program offered by the IRS that allows you to file your federal taxes through an associated tax preparer for free! The IRS Free File program is a public-private partnership between the IRS and a group of tax software companies called the Free File Alliance. It allows eligible taxpayers to prepare and file their federal income tax returns online for free. Here’s how it works:
1. Eligibility:
- Income: The main requirement is your Adjusted Gross Income (AGI). For the 2024 tax year (filing in 2025), the AGI limit is $84,000. This applies to all filing statuses (single, married filing jointly, etc.).
- Other factors: Some participating companies may have additional eligibility requirements, such as age or state residency.
2. Accessing Free File:
- Start at the IRS website: It’s crucial to access Free File through the official IRS website (https://www.irs.gov/filing/irs-free-file-do-your-taxes-for-free). This ensures you’re using the free version and not accidentally directed to a paid product.
- Choose a provider: The IRS website provides a list of participating companies and their specific offerings on this page: https://apps.irs.gov/app/freeFile/.
3. Preparing and Filing:
- Create an account: Once you’ve chosen a provider, you’ll be redirected to their website to create an account.
- Follow the instructions: The software will guide you through the process of entering your tax information.
- File electronically: When you’re finished, the software will transmit your return electronically to the IRS.
Key Features of IRS Free File:
- Free federal return: Participating companies cannot charge you to prepare and e-file your federal tax return if you qualify.
- Guided experience: The software uses a question-and-answer format to help you complete your return accurately.
- Error checks: Built-in checks help catch mistakes and ensure your return is complete.
- Direct deposit: You can choose to receive your refund via direct deposit for faster processing.
Important Notes:
- State taxes: While federal filing is free, some providers may charge for state tax preparation.14 Check with your chosen provider for details.
- Support: The level of customer support offered may vary between providers.
- Accuracy: Always review your return carefully before filing, even with the help of software.
This is a great service that is most certainly underutilized by eligible tax filers and can potentially save you some hard-earned cash.
Please comment or send an email if you have any questions.
Joe Baker, CFP®
Baker Asset Management, LLC
