What is the IRS Free File? – Master of Accounting Degrees

The IRS Free File is a program to make taxes slightly less painful. It provides a no-fee online filing service for Americans who qualify by subsidizing the use of traditional tax preparation software. Here’s everything you need to know about the IRS’s program for free tax preparation.

Who Qualifies for Free File?

For 2017, individuals earning less than $64,000 are eligible for Free File services. If you’re married filing jointly, you receive the short end of the stick; the $64,000 limit is for your household’s combined annual income. You can use any of 13 tax preparation software programs, including popular companies like TaxAct, H&R Block and TurboTax. If you have a unique tax situation with multiple W2s, unusual income sources or 1099-MISC forms to file, not all companies will offer you free filing services. They’ll want you to purchase additional products for those forms. Instead, use the IRS’s wizard to help you find the right software for your filing needs.

Do You Still Receive a Refund if You Use Free File?

This IRS service uses the same rules and same software as visiting a local tax service. The only difference is that the IRS or its non-profit partners are paying for the cost of preparing your taxes. Online filing can reduce errors and delays, so the IRS wants you to use this option. You are still eligible to receive the Earned Income Tax Credit, Hope Scholarship Tax Credit and Retirement Savings Contributions Credit. You’ll still receive a tax refund just as if you filed with any other method.

Does Free File Cover State Taxes?

Because the IRS is a federal agency, their Free File program only covers federal taxes. However, many states have negotiated free tax filing options for residents. If your state offers this program, it may have different income requirements than the federal version. Local non-profit organizations and your chapter of United Way might also offer free state tax preparation and filing assistance. You can look for low-income tax clinics in your region or contact your local library or 2-1-1 service to find out more.

What If You Make Too Much to File for Free?

Anyone can file their taxes for free. What’s the catch? You have to be willing to manually fill out paper forms and mail them to the IRS. That means following a guide, having a high attention to detail and being able to do basic mathematics without any software to help you. Americans traditionally filed their taxes this way, and many accountants still use paper filing systems. It’s not as quick or convenient as filing taxes online, but it is free. The IRS has the free printable forms you’ll need to get started. Of course, you can always use an online tax preparation service or visit a CPA for help with your taxes. You’ll just have to pay for the help.

No one likes filing their taxes. With IRS Free File, you can save a small amount of headache and unnecessary fees, hopefully making the experience better.