The start of a new year also means the start of a new tax season.
If you’re looking to minimize the cost of filing this year, you’re in the right place. Many programs and companies offer free filing services. That said, your tax situation needs to be pretty simple to qualify.
Here’s a closer look at four popular ways to file taxes for free, how they work and who qualifies.
1. IRS Free File
The IRS Free File program allows qualifying taxpayers to file their taxes for free using guided tax preparation software from the IRS’s network of trusted partners. To qualify, your adjusted gross income (AGI) must be $79,000 or less. AGI is your gross income minus a specific list of deductions you take before claiming the standard deduction or itemizing deductions.
If you’re interested, you can visit the IRS Free File: Guided Tax Software webpage and review the lineup of service providers. As you compare them, be sure to read the fine print as the offerings and requirements vary. For example:
— AGI: The maximum AGI allowed can be lower than the maximum limit set by the IRS.
— Age: Partners may have age limits for taxpayers.
— Free federal return: Partners may offer free federal returns only to taxpayers in certain states.
— Free state returns: Partners may offer free state returns in some or all states.
Once you find the best provider for your situation, select it, head to its website and follow the directions to file your taxes cost-free.
If your AGI is above the $79,000 threshold, the IRS Free File program also offers all filers free electronic fillable forms and the ability to request automatic tax-filing extensions.
[Read: How to File Taxes.]
2. Online Tax Software Services
Another option is to go directly to an online tax software service provider. Many offer free filing to taxpayers who have very simple tax situations.
TurboTax, for example, offers free federal tax filing to an estimated 37% of taxpayers who file Form 1040 and claim a limited amount of credits. For those with more complex filing needs, the cost of do-it-yourself filing can go up to $89.
“Most free tiers come with limitations, requiring users to upgrade for certain credits and deductions, such as health savings account contributions, child care expenses and more,” Robert Farrington, founder and CEO of The College Investor, said in an email.
“Filing state returns may also incur fees with some companies. Caution is advised to avoid unexpected costs,” he added.
Here’s a look at four popular online tax software services and the free filing options they provide.
| Free Federal Tax Filing | Free State Tax Filing | |
| TurboTax | Yes — Form 1040 with limited credits. | Yes — if you qualify for a free federal return. |
| Tax Act | Yes — Form 1040 with no additional forms or schedules. | No. |
| H&R Block | Yes — A variety of forms but doesn’t include child care expenses, some investment income, HSAs, self-employment and more. | Yes — if you qualify for a free federal return. |
| Tax Slayer | Yes — Form 1040 for $100,000 or less with no dependents, but no earned income tax credit. | Yes — if you qualify for a free federal return. |
[Read: 10 Tax Credits You May Qualify for This Year]
3. IRS Volunteer Income Tax Assistance (VITA) Program
The IRS also offers a Volunteer Income Tax Assistance program that provides free, in-person assistance to taxpayers filing basic tax returns. To qualify, you need to be a person in need, such as:
— A taxpayer who makes $64,000 or less.
— A person who speaks limited English.
— A person living with disabilities.
The VITA program is often held at community locations such as libraries, shopping malls and schools, and is staffed by volunteers who have passed IRS-compliant tax law training. You can find a VITA location near you by calling 800-906-9887 or using this locator tool.
4. IRS Tax Counseling for the Elderly (TCE)
The IRS Tax Counseling for the Elderly (TCE) program is similar to the VITA program but is focused on helping people who are at least 60 years old. The counselors specialize in areas of tax law that are relevant to seniors, such as retirement and pension issues. If you’re 60 or over and want free, in-person help filing your return, you can find a TCE location near you by calling 800-906-9887 or using this locator tool.
[Filing 2024 Taxes: What’s My Tax Bracket?]
2024 Tax Filing Season Has Begun
The tax filing season began on January 29. You might qualify to file for free using guided tax preparation software if your situation is basic. It’s also free to prepare and file all the forms yourself if you feel comfortable doing so.
If you end up opting to pay to file, be sure to shop around with different tax preparation firms and software providers first. Many are competing for your business, so by comparing a few quotes, you have a better chance of getting a good deal. Make sure you file your returns earlier to avoid any delays, especially when you’re expecting a refund.
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How to File Taxes for Free originally appeared on usnews.com
Update 02/20/24: This story was previously published at an earlier date and has been updated with new information.
