IRS Free File is available for eligible tax payers to file their federal tax returns online, for free, utilizing self-preparation software.

If you have gone to the site, there is a lot of information presented at once. Let’s break down the IRS Free File site here. Remember, IRS Free File applies to federal income tax preparation only. If you have a state income tax filing, this may incur a cost or may possibly be covered through the selected software partner.

When you open the site and select explore free guided software, you are brought to a new page where you are presented with two options to browse software options. When selecting browse all, you are presented with 8 software platforms.

Each software provider has different qualifications in order to use their software. This can be confusing to some because IRS Free File is available to those who have an adjusted gross income, AGI, of $84,000.00 or less but, you are not guaranteed to be offered free filing status across all software providers.

Below, you will find 4 out of the 8 software providers for the 2024 tax season.

Lets create an example scenario and use 1040.com, TaxSlayer, OLT and ezTaxReturn.com for checking eligibility. Jill needs to file her taxes. She is:

45 years old
AGI of $65,000.00
Not active military
Lives in New Jersey
Not EITC eligible

Based on Jill’s information, she cannot use OLT or TaxSlayer to file her taxes for free since she has an AGI over $48,000.00 and does not meet the additional qualifications to be considered with her higher AGI.

Jill can use 1040.com and ezTaxReturn.com for free for her federal income tax preparation because she does meet the AGI requirements.

Now, let’s see how Jill can file her state income tax for the 2024 tax year. She cannot use ezTaxReturn.com for a free state tax return because there are no eligible states for free returns. After selecting the ? icon, both TaxSlayer and 1040.com do not provide free state returns for New Jersey.

The only tax software provider that offers free state returns is OLT however, this is only when the individual qualifies for a free federal return in which Jill does not.

Jill will need to verify her eligibility for the remaining 4 software providers or pay to prepare her state income taxes for the 2024 tax year.

Be sure to verify your eligibility and browse other tax software providers for their qualifications for free tax filing. Some tax payers that are deemed simple filers, that only have W-2’s to file, can also file their federal income tax return for free.

Note that the scenarios referenced applies to taxpayers looking to self-prepare. If you have any questions or prefer to have your taxes prepared on your behalf, seek a tax professional for guidance.

This blog is for educational purposes only. Mikaesbooks is not a tax advisor or legal professional. Seek an Enrolled Agent, EA or a Certified Public Accountant, CPA, or other tax professional for more information.