Numerous private-sector tax software providers have teamed up with the IRS to provide free services for virtually all taxpayers—subject to certain rules. If your income is higher than the eligibility limit, you might be entitled to more limited assistance. The IRS Free File program has filed millions of returns since 2003. However, according to observations made by the think tank Bipartisan Policy Center, IRS Free File is being significantly underused by eligible taxpayers, meaning that even more people are eligible to use it to file their tax returns for free.
Who Is Eligible for IRS Free File?
Eligibility for IRS Free File depends on your adjusted gross income (AGI). For example, if your AGI was $73,000 or less for the 2021 tax year, you could have used the Free File software to prepare and file your return during the 2022 tax season. If your AGI is higher than the threshold, you can still access free, fillable tax forms on the IRS website. However, you won’t get the interactive, personalized assistance that Free File provides. Keep in mind that the Free File income threshold is your adjusted gross income, which is what remains after you take certain adjustments to income. This is not necessarily everything you earn during the year, so you might be eligible even if your salary is over the threshold. Benefits.gov offers an online eligibility checker if you’re uncertain whether you qualify.
IRS Free File Providers
The IRS typically works with TaxAct, TaxSlayer, FreeTaxUSA, 1040NOW, and ezTaxReturn.com, among others, for its IRS Free File program. The IRS website allows you to browse all providers available or you can answer a few questions and get directed to a provider that may work for you.
Age and Other Restrictions for Free File
The IRS places restrictions and limits on just how many taxpayers Free File software providers can serve each year, according to the Bipartisan Policy Center. As a result, some alliance members have imposed their own additional restrictions for eligibility. According to the Bipartisan Policy Center, of the 12 Free File Alliance members in 2019, only three had no age limit, while five could only be used by taxpayers under age 60.
Step-by-Step Overview of IRS Free File
The IRS offers access to the alliance members’ tax preparation software on its website. You’re not obligated to use any particular provider—you can select whichever one works best for your own situation. When January rolls around, you can visit the IRS website to see if Free File is ready. If it is, you can follow the steps below. Click on the link for the provider, and the IRS site will send you to that provider so you can review eligibility requirements and find out exactly what each offers. You must then create an account, and the software provider will walk you through the completion of your tax return, step by step. You will need documents such as last year’s tax return, Social Security number, W-2s, and more to get started. The software will ask you a series of questions and hunt down tax breaks and the best filing options for you, based on your answers. Each provider will electronically file your tax return for you and you’ll receive an email receipt when it’s been accepted by the IRS. Both preparation and filing of federal returns are provided free of charge. You may also be able to file your state tax return for free, depending on your personal situation.
Free, Fillable Forms
You have another option if your income is over the threshold for eligibility with the Free File software providers: The IRS also offers free, fillable tax forms. The biggest difference here is that you won’t have helpful program guidance to walk you through the ins and outs of completing these forms. They’re still online, but you must enter all the data yourself, so you’ll have to know where to place the information. The forms don’t self-check for errors the way the free software programs do, and they’re capable of doing only very basic math. You can e-file your return and forms after they’re completed. You don’t have to print out the forms and mail them in. Only free, fillable forms for federal tax returns are available. You can’t use this service to prepare your state return.
Pros and Cons of Using Free File
Browsers Compatible With IRS Free File
Google Chrome, Microsoft Edge, Safari, and Mozilla Firefox are generally compatible with IRS Free File. You also might be out of your element if you’re not particularly computer-savvy, or if you’re using older equipment, such as an older browser. These have been known to result in printing and display problems. You’ll also need a valid email address. The IRS recommends an Intel Core 2 Duo 1.8 GHz processor if you’re using the fillable forms and memory of at least 1 GB RAM. You’ll need a high-speed internet connection and Acrobat Reader 8.0 or newer for printing. If you run into problems, the IRS suggests trying another internet service provider, browser, or computer. You can also contact the software provider—not the IRS.
Who Should Use IRS Free File?
Free File is considered to be most suitable for those with relatively basic tax situations. The software programs do provide a variety of different tax forms, but only the most common ones, so this program is probably not for you if your return:
Requires filing obscure tax formsIncludes multiple schedulesIncludes income from a business that you own
You’ll also need to be comfortable with the English language. In 2021, only two of the software providers are set up to accommodate those who speak Spanish. If your tax situation is relatively simple, however, and you are comfortable with both computer software and the English language, Free File may be the best option to file your taxes quickly and inexpensively.
