Did you know that there is a free way to file your taxes? It’s called Free File, and it’s an Internal Revenue Service (IRS) program that allows you to prepare and file your federal return without paying a penny. More than 100 million Americans are eligible to use Free File, which is about 70% of taxpayers. To qualify, your adjusted gross income (AGI) must be below a certain limit, which varies each year.
Free File gives you access to guided tax filling software that helps you prepare your federal return step by step. Some partners also offer the possibility of filing state returns for free. If the tool is free, and has no cost to the taxpayer, then why are so few people using it? Well, no matter, it’s time for you to check what the eligibility criteria are so that you can use Free File at no cost.
Save Money on Taxes Using the Free File Tool
Although millions of people are eligible, only about 3% of taxpayers take advantage of Free File. It’s a significant opportunity that’s being missed! Why opt for Free File? It’s free – you won’t incur any costs.
It’s easy, like, super easy: the software guides you through each step, allowing you to prepare your tax return with confidence. It’s secure since it’s backed by the IRS itself, and your data is protected with state-of-the-art security measures. It’s fast – you can file your return electronically and receive your refund quicker.
How to get started? Visit the IRS website and choose the Free File option. There, you’ll find a list of tax software partners to choose from. Don’t miss out on this chance to save money and time when filing your taxes.
Getting Ready to File Your Taxes For Free: What You Need
Before you start tackling your tax filing, it’s crucial to gather all the essential information. Firstly, ensure you have your personal details in order, including last year’s tax return for reference and verification of Adjusted Gross Income (AGI). Collect valid Social Security numbers for yourself, your spouse, and any dependents.
Moving on to income and receipts, gather information related to Social Security benefits, unemployment compensation, small business income (if applicable), and receipts for income from rentals, real estate, royalties, partnerships, S corporations, and trusts. Don’t forget other income sources, such as Forms W-2 (wages), 1099-INT (interest), 1099-G (state/local tax refunds), 1099-DIV (dividends), and 1099-R (retirement plan distributions).
For Affordable Care Act filers, be sure to have Form 1095-A (Health Insurance Marketplace Statement) and Form 8962 (Premium Tax Credit, if applicable). When filing electronically, keep your last year’s AGI handy for identity verification, create a 5-digit self-select PIN for signing your electronic return, and consider online account access for a quick view of your prior year AGI and access to tax records. If online access is unavailable, request a mailed tax return transcript showing your prior year AGI. With all this information in hand, you’ll be well-prepared to navigate the tax filing process smoothly.
The following tax providers are participating in IRS Free File in 2024:
- 1040Now
- Drake (1040.com)
- ezTaxReturn.com
- FileYourTaxes.com
- On-Line Taxes
- TaxAct
- TaxHawk (FreeTaxUSA)
- TaxSlayer
New IRS Pilot Filing System Now Being Tested in 12 States
The IRS is implementing significant changes to the tax filing system with the gradual launch of its Direct File program. This initiative aims to empower taxpayers to bypass expensive tax preparation software such as TurboTax and H&R Block, allowing them to file directly with the IRS.
The rollout of the program will occur in stages, initially granting eligibility to only 12 states for the Direct File program this year. In its initial phase, access will be limited to government employees, with broader availability for other filers expected in the coming months.
The Direct File pilot will be available to eligible participants in these states: Arizona, California, Florida, Massachusetts, Nevada, New Hampshire, New York, South Dakota, Tennessee, Texas, Washington state, and Wyoming. The pilot is not an option for you if you did not live in one of the 12 participating states in 2023.