If you satisfy specific criteria, you can file taxes free of cost.
Please remember the following message: “Taxpayers, especially those with low to moderate incomes or”essential tax files, can file for free utilizing online software packages or receive direct assistance from tax professionals who volunteer through IRS programs.
The free services can help taxpayers avoid paying exorbitant tax preparation fees. “Many taxpayers with simple returns often pay hundreds of dollars to file taxes through national tax preparation companies,” said Nell Curtis, an accounting lecturer at Milwaukee Area Technical College—al College in Wisconsin.
Here’s a look at several possibilities and how they might fit into your financial situation.
Free Versions of Online Tax Software
According to Curtis, several large tax preparation companies would entice customers by offering”free” filing offers. But wary of the upsell.
Of the major online tax software platforms examined by Cashably, Cash App Taxes is our best free selection for easy tax returns. It allows you to file taxes both your federal and state taxes for free. The free bundle includes various forms, including those for self-employed individuals.
Unlike Cash App Taxes, some online tax software vendors offer fewer form possibilities, so you might want to proceed with care.
“If your return needs extra forms like a Schedule A or C, there may be an additional cost,” said Curtis. In many cases, the federal return might be free, but a state return will have an additional cost.”
When selecting a free product, read the fine print. Your specific scenario may not be compatible with most free items due to limits such as your income level and the forms you must complete.
Also, consider the intricacy of your taxes: If you believe you will require professional aid when filing, several tax software providers provide CPA support—but you will most likely have to pay for it.
IRS Free File Taxes
In 2023, the IRS Free File program allows Americans with an adjusted gross income (AGI) of $79,000 or less to file taxes for free using several online tax software companies, including well-known ones such as TaxAct and TaxSlayer. You can access an IRS-related online system called Free File Fillable Forms if you earn more. If you require an automatic extension, you can file for it.
“Many people overlook the IRS Free File program, which links eligible taxpayers to vetted online tax preparation services,” according to Curtis.
One benefit of Free File is that it offers an experience comparable to software developed by major tax filing companies. Generally speaking, though, using the IRS Free File website rather than the online tax software package directly allows you to file more forms for free.
“The Free File program should be seriously considered by someone who meets the requirements and has relatively simple taxes,” continues Curtis.
To use Free Fillable Forms effectively, you must become familiar with paper forms and be able to perform simple tax calculations on your own without much assistance. You cannot submit state taxes through the service; it is only for federal taxes.
Related: Are Personal Loans Taxable & Considered Income?
IRS Direct File Taxes
Through the IRS Direct File program, taxpayers can electronically file their tax returns for free. If you live in a participating state and have low income and deductions, you may be eligible for the program.
The only types of income that count toward Direct File eligibility are salary, interest, Social Security payments, and unemployment compensation. Additionally, if you decide not to itemize for the taxable year, you must take the standard deduction.
The IRS Direct File program’s primary focus is your convenience. Its straightforward question-and-answer structure makes it mobile-friendly. The program may help you whether you’re using a PC, laptop, or mobile device or prefer English or Spanish.
One of the IRS Direct File program’s best features is its live chat service. Unlike other free online tax applications, this application lets you immediately chat with an IRS customer support agent. You can get assistance with technical problems or explanations on essential tax topics.
The Internal Revenue Service (IRS) provides an online tool on its official website that allows individuals to check if they meet the eligibility requirements for a specific program. Volunteer Income Tax Assistance
The IRS offers free tax preparation through the VITA program for eligible individuals, including those with limited English proficiency, disabilities, and incomes of $64,000 or less.
To be eligible to serve, VITA volunteers must complete certification tests. According to Curtis, each return must pass a quality review before filing.
Curtis, the site coordinator for Milwaukee Area Technical College’s VITA program, continues, “This is a good choice for people who don’t want to do their taxes but still want to use a free filing program. Don’t forget this: “This could be a perfect option for people.” They are uncomfortable with doing their taxes but still want to take advantage of a free filing program.
You should get ready prior to your VITA appointment. You should bring the items on the IRS’s checklist. To verify their identities, taxpayers will also need to present photo IDs, Social Security cards, or taxpayer identification number (TIN) letters.
The Elder Tax Counseling Program (TCE)
The IRS provides free assistance to taxpayers 60 years of age and above through the Tax Counseling for the Elderly (TCE) program, which is similar to the VITA program but focuses on providing more specialized help and advice regarding tax issues related to pensions and retirement.
You can anticipate assistance with tax preparation through the TCE program every year from January 1 to April 15. Nonetheless, the agencies running the program might assist you with senior citizens.
Use the IRS tool for free tax prep help to locate a TCE or VITA program in your region. Its search feature shows you a list of nearby places based on your zip code.
