WHAT IS THE IRS FREE FILE?
The IRS Free File Program lets you file your federal income tax return online for free!
… if you’re eligible.
This is a public-private partnership between many tax preparation and filing software industries and the IRS. There are two ways for taxpayers to file their federal income tax return for free.
| Option 1 (AGI $72,000 and below) | Option 2 (AGI above $72,000) |
| Traditional IRS Free File | Free File Fillable Forms |
| •IRS partnered sites for free federal tax filing •State tax filing (some offers are free) •Tax online software does all the calculations •Guided preparation | •Free electronic forms you file yourself •No state tax filing •Basic calculations with limited guidance •No guided preparation, therefore you need to know how to prepare paper forms |
DO YOU QUALIFY?
The IRS Free File Program is considerably underused by eligible taxpayers.
The eligibility is dependent on your Adjusted Gross Income (AGI). If your AGI is $72,000 or below then you can get free access to tax software providers to file your federal tax return.
These partnered tax software providers offer interactive guidance to make filing your tax return a little less stressful.
There are also some free state tax filing options through these partnered companies. So, depending on what state you live in you may be subject to a state tax filing cost through the partnered site.
As you can see in option two, you still have some limited free access if your AGI is above $72,000.
The IRS provides free fillable forms to file electronically. However, you need to be knowledgeable on how to prepare a tax return as there is very limited guidance for this option.
There is also no state tax filing option and only has basic calculations.
Therefore, unless you are confident in completing the necessary tax forms yourself then you should only consider yourself eligible if your AGI is $72,000 or less.
Which still applies to a majority of Americans, around 70%. So don’t rule yourself out yet!
Remember what you learned from the blog post, What Is Adjusted Gross Income? That $72,000 isn’t your gross income. So, you may still be eligible even if your gross salary is over $72,000.
Keep in mind, the IRS Free File Program is designed for taxpayers with relatively basic tax returns. Head here to see when to hire a tax professional, and when it’s okay to self-prepare.
HOW TO FILE
First, you need to have one of the following internet browsers that are compatible with IRS Free File:
- Google Chrome
- Microsoft Edge
- Safari
- Mozilla Firefox
Then head to the IRS Free File page.
Select “Choose an IRS Free File Offer” under option 1.
You will need:
- Income statements (W-2s or 1099s)
- Any adjustments to income
- Current filing status
- Dependent information, if applicable
Next, you can either browse all available offers or start the lookup tool to determine the best offer for you.
The IRS Free File Online Lookup tool will take you through an interview process and give you results at the end of the interview showing the offer right for you.
Once you decide what offer is best for you, then you will select “View This Offer”.
This will take you to the partnered tax software website, and you will begin the process of filing your return.
If you’re eligible to use the IRS Free File Program, then you should be taking advantage of it! Follow along for more tax tips this tax season!
All videos are made with Animaker, sign up for free today!
