Here's How to File Your Taxes for Free in 2023
KEY POINTS
- The IRS Free File program allows millions of Americans to file their taxes using tax preparation software for free.
- Participating providers can be accessed directly from the IRS website.
- Certain taxpayers can also file their state taxes for free, too.
The Free File program has been around for over 20 years.
Every spring, hundreds of millions of Americans calculate what they owe in federal and state income taxes. For many Americans, free tax preparation software can help to save time and money when calculating tax liability. Are you eligible for free tax preparation help, and how can you access it? Read on to find out.
IRS Free File
Since 2002, the Internal Revenue Service, or IRS, has teamed up with private tax-preparation companies to help Americans calculate their tax liability.
This partnership, known as the IRS Free File Alliance, allows taxpayers under a certain income level to file their taxes with guided software for free. If your adjusted gross income fell below $73,000 in 2022, you're in luck. With a handful of questions and automatic calculations, you can file your taxes for free with one of the Alliance partners.
But what if you're above the maximum income threshold? The IRS will make you do all of the work, but at least you'll get fillable forms and a 25 page user's manual to work with.
Where to go
The IRS may not advertise the Free File program well, but it is easy enough to get started if you know where to look.
First, go to: https://apps.irs.gov/app/freeFile
Once there, you can browse tax preparation providers. The website allows you to filter out providers based on your income, age, Earned Income Tax Credit eligibility, military service, and state. There are seven different providers who are part of the IRS Free File Alliance, each of which best serves different types of taxpayers.
Once you have chosen a tax preparation program, continue on to the given website. The software will guide you through your tax return from start to finish and will even allow you to pay taxes online. Happy filing!
State returns
However, many Americans will also owe taxes in their state of residence. Can the Free File program help with that too? It depends.
The ability of a taxpayer to file a state return for free using Free File Alliance software will vary. Generally, whether you qualify to file a free state tax return depends on your state of residence and the provider you choose. While some providers offer free returns in some states, others don't offer the service at all.
Tax preparation is a headache that millions of Americans could do without. Yet, for those who earned less than $73,000 last year, the preparation process might be a little easier. By using the IRS Free File program, you could save hours filing your taxes without breaking the bank.
Our Research Expert
Charlie Pastor, CFP®, is a freelance writer for Motley Fool Money. Founder of a Registered Investment Advisory firm. Charlie has reached thousands with educational seminars and videos shared on social media.
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