File Taxes For Free With This Little-Known Service

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What happened Tax season is upon us, and some taxpayers know they can file their federal taxes for free through the IRS Free File program. Select tax preparation companies partner with the IRS to offer free federal electronic tax filing to eligible taxpayers with an adjusted gross income (AGI) of $73,000 or less. But it turns out not everyone is putting the program to use. So whatMany taxpayers are paying fees to file their federal tax returns despite qualifying for free filing. According to the National Taxpayer Advocate, the IRS Free File program goes largely unused.
Discover: Find the best tax software for your situation hereSave: We researched free tax software and put together a list of the best here
In a 2022 report to congress, the organization said, “In PY 2022, only two percent of all taxpayers used Free File, the result of the IRS’s Free File Inc. partnership with the tax return preparation industry. This is the case even though the IRS targets Free File eligibility at 70 percent of taxpayers.”Considering that only a small percentage of taxpayers used the program in 2022, it’s likely that many taxpayers don’t know that the IRS Free File program exists or who qualifies for it. Now whatDon’t miss out on the chance to save money. Taxpayers with an adjusted gross income (AGI) of $73,000 or less qualify for the IRS Free File program. Several tax preparation companies participate, and each company outlines eligibility requirements on the IRS Free File website. It’s worth noting that taxpayers may need to pay state tax filing fees. If you don’t qualify for this program, check to see if you are eligible for other free or low-cost programs to make filing your taxes more affordable. Here are five alternate options: Free File Fillable Forms: All taxpayers, regardless of income or age, can file their taxes at no cost using Free File Fillable Forms. Volunteer Income Tax Assistance (VITA): This program is available to people who make $60,000 or less, people with disabilities, and limited English-speaking taxpayers who need assistance preparing their tax returns. MilTax: The Department of Defense partners with MilTax to provide free tax preparation services to active-duty service members and their families, members of the National Guard and reserves, and eligible retired and honorably discharged service members. Tax Counseling for the Elderly (TCE): Volunteers are available to provide free tax help to seniors ages 60 and older. Local tax preparation programs: Free or low-cost tax preparation services may be available at local community centers, libraries, and schools. If you’re on a tight budget, see if these programs are available in your area.With today’s high living costs, there’s no point in wasting money on a service you can get for free. By taking advantage of free or low-cost tax filing programs, taxpayers can keep more money in their checking accounts.If you don’t qualify for these programs, our list of the best tax software can help you find a tax filing option that works for you. No one enjoys filing taxes, but software can make it easier. Our picks for best tax softwareOur independent analysts pored over the perks and user reviews for the most popular tax provider services to land on the best-in-class picks to file your taxes. Get started by reviewing our list of the best tax software.We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Natasha Gabrielle has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Target. The Motley Fool has a disclosure policy. 

What happened

Tax season is upon us, and some taxpayers know they can file their federal taxes for free through the IRS Free File program. Select tax preparation companies partner with the IRS to offer free federal electronic tax filing to eligible taxpayers with an adjusted gross income (AGI) of $73,000 or less. But it turns out not everyone is putting the program to use.

So what

Many taxpayers are paying fees to file their federal tax returns despite qualifying for free filing. According to the National Taxpayer Advocate, the IRS Free File program goes largely unused.

In a 2022 report to congress, the organization said, “In PY 2022, only two percent of all taxpayers used Free File, the result of the IRS’s Free File Inc. partnership with the tax return preparation industry. This is the case even though the IRS targets Free File eligibility at 70 percent of taxpayers.”

Considering that only a small percentage of taxpayers used the program in 2022, it’s likely that many taxpayers don’t know that the IRS Free File program exists or who qualifies for it.

Now what

Don’t miss out on the chance to save money. Taxpayers with an adjusted gross income (AGI) of $73,000 or less qualify for the IRS Free File program. Several tax preparation companies participate, and each company outlines eligibility requirements on the IRS Free File website. It’s worth noting that taxpayers may need to pay state tax filing fees.

If you don’t qualify for this program, check to see if you are eligible for other free or low-cost programs to make filing your taxes more affordable.

Here are five alternate options:

Free File Fillable Forms: All taxpayers, regardless of income or age, can file their taxes at no cost using Free File Fillable Forms. Volunteer Income Tax Assistance (VITA): This program is available to people who make $60,000 or less, people with disabilities, and limited English-speaking taxpayers who need assistance preparing their tax returns. MilTax: The Department of Defense partners with MilTax to provide free tax preparation services to active-duty service members and their families, members of the National Guard and reserves, and eligible retired and honorably discharged service members. Tax Counseling for the Elderly (TCE): Volunteers are available to provide free tax help to seniors ages 60 and older. Local tax preparation programs: Free or low-cost tax preparation services may be available at local community centers, libraries, and schools. If you’re on a tight budget, see if these programs are available in your area.

With today’s high living costs, there’s no point in wasting money on a service you can get for free. By taking advantage of free or low-cost tax filing programs, taxpayers can keep more money in their checking accounts.

If you don’t qualify for these programs, our list of the best tax software can help you find a tax filing option that works for you. No one enjoys filing taxes, but software can make it easier.

Our picks for best tax software

Our independent analysts pored over the perks and user reviews for the most popular tax provider services to land on the best-in-class picks to file your taxes. Get started by reviewing our list of the best tax software.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Natasha Gabrielle has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Target. The Motley Fool has a disclosure policy.

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