Most Taxpayers Can Now Prepare and File Their Returns for Free

Americans spend an average of $240 to prepare and file their annual tax returns, according to the IRS Taxpayer Advocate Service. Because the process is so complicated, about one million taxpayers who are owed money don’t file returns, allowing the U.S. Treasury to keep more than $1 billion each year.

Most taxpayers can get free help preparing and filing their returns. The new IRS Direct File program is now available to residents of 25 states, including Massachusetts. The Free File program, started in 2003, links taxpayers to free software offered by commercial tax preparation companies. Member of the military, a veteran, or have an annual income below about $70,000? There are still other free filing options. Unfortunately, last year less than five percent of households eligible for no-cost help took advantage of it.

Below is a rundown of available options, eligibility criteria, where to get help, and an important warning about tax fraud, which is growing at an alarming rate.

Note that all the free prep-and-filing options require you to track down documents and then enter or verify data. Fortunately, most websites are easy to navigate. Instead of complicated forms and instructions, these sites prepare your return as you answer simple questions, such as “Do you have children living with you?” and “Did you have interest income from a bank, savings, or investment account?”

Warning: DO NOT search the internet using terms such as “file my taxes for free”—you could end up on the website of a scammer, or even a well-known tax prep brand that will charge you hefty fees. Instead, use the links provided below, or the IRS website.

“Direct File” from the IRS

This service was built by the IRS and allows those with relatively simple returns to file them online without using third-party software. Because the IRS already collects lots of info about our earnings, Direct File can import those data and simply ask users to verify it, speeding up preparation time. No one is required to use Direct File; it was built as a free alternative to commercial tax prep software.

IRS Direct File is new; it is now available to those who lived and worked in 25 participating states, including Massachusetts.

Unfortunately, although Direct File could help more than 30 million Americans save on tax-prep fees—and even more once additional states participate over the next few years—there is now great uncertainty as to whether Direct File will continue to exist, even for this year’s tax season.

On February 3, Elon Musk, who has been charged by President Trump to slash federal spending, responded to a social media post criticizing the Direct File program by writing “That group has been deleted.”

So far, the Direct File website is still up and running. But it’s unclear whether its staff is still around to support it, or if it will continue to operate throughout the 2025 tax season.

The IRS, the White House, or Musk could resolve public confusion over the future of the program, but, so far, none has issued further statements.

We will update this post as more info becomes available. In the meantime, if you want to use Direct File, start by checking whether you’re eligible for the program by answering a few questions on the IRS Direct File website. In general, Direct File is available to taxpayers with low or moderate incomes ($200,000 or less for individuals and $250,000 or less for married couples) who take the standard deduction and whose earnings were already reported to the IRS (W-2 wages, Social Security benefits, unemployment compensation, interest income, and distributions for qualified medical expenses from Health Savings Accounts). Gig workers or those with unreported cash income (e.g., tips, alimony) cannot use Direct File. Neither can those who need to report dividends, capital gains/losses, or rental income.

You can use Direct File to claim the most common tax credits, including the child tax credit, earned income credit, child/dependent care credit, premium tax credit, saver’s credit, and credits for older adults or disabled taxpayers. You can also deduct student loan interest. Those with more complicated finances will have to use a different filing method.

Direct File will also guide you toward free filing tools to help you prepare and send in your state tax return if you lived in Massachusetts for all of 2024 and earned all of your income here. Before starting a Direct File return check the full list of eligibility criteria.

Free Programs from Tax Prep Companies

“Free File” is a partnership between the IRS and eight companies (the IRS calls them “trusted partners”) to provide free tax preparation and filing services for individuals and families with an Adjusted Gross Income of $84,000 or less. This year, the participating companies are: 1040.com, 1040NOW.net, ezTaxReturn.com, FileYourTaxes.com, FreeTaxUSA, OLT.com, TaxAct.com, and TaxSlayer.com.

In addition to the income threshold requirement, each company sets its own eligibility rules based on age, state residency, and other factors. Some companies charge fees to prepare and/or file state income tax returns. Click here for a summary of each company’s eligibility requirements and info on state tax prep and filing fees.

Although H&R Block and TurboTax, the most popular tax prep software companies, do not participate in the IRS’ Free File program, they do offer free online prep-and-filing services to those with relatively simple tax returns. In general, you can use these two companies’ free options if you had wages reported on a W-2, had only one job, take the standard deduction, and are entitled to the most common credits, such as the child tax credit or earned income credit. H&R Block says 55 percent of taxpayers can use its free option; TurboTax estimates 37 percent can use its free website.

Program for Low-Income Taxpayers

The Volunteer Income Tax Assistance (VITA) program helps community organizations offer free basic tax preparation help, using IRS-certified volunteers, generally to households with adjusted gross incomes of less than $67,000 or with disabilities. Some programs specialize in helping those who speak limited English. Selected help centers also have workstations where taxpayers can input info and electronically file their own tax returns with or without the assistance of an IRS-certified volunteer. Click here to go to a searchable database of VITA sites.

VITA also operates GetYourRefund.org, a website offering free tax prep software. It was built by Code for America, a nonprofit organization, with help from the IRS. To qualify, you must meet income requirements (in general, it’s limited to individuals and families with Adjusted Gross Incomes under $84,000 per year).

Instead of meeting in-person with a tax prep volunteer, with GetYourRefund.org you upload your tax documents to its website and provide basic information. A VITA volunteer completes your return and then a second volunteer reviews it; you likely will be contacted several times with questions. It usually takes two or three weeks to complete the process.

Program for Older Taxpayers

Similar to VITA, the Tax Counseling for the Elderly (TCE) program helps community nonprofits provide free tax help to older adults. In general, you must be 60 or older, but some sites will help those in their 50s with low-to-moderate incomes. The AARP Foundation’s Tax Aide program staffs most sites, and many advisors specialize in pension and retirement issues unique to seniors. Between now and April 15, use the AARP’s “Site Locator Tool” to find nearby locations. The IRS also maintains a searchable list of TCE locations.

At some TCE locations, you can prepare and file your own return on-site for free using tax-prep software and with help from a volunteer. This option is available only at locations that list “Self-Prep” in the AARP online site finder tool.

Military Service Members and Veterans

MilTax is a free resource backed by the Department of Defense for service members, eligible family members, survivors, and recent veterans (up to 365 days from their separation or retirement date).

It includes tax preparation and electronic filing software, as well as personalized support from military tax experts. MilTax assists with issues involving deployments, combat and training pay, housing, and multi-state filings. Eligible service members (and some veterans) can use MilTax to electronically file a federal tax return and up to three state returns for free. Get free one-on-one tax help from MilTax experts over the phone by calling 800-342-9647, or visit a VITA location for in-person help.

Help Available from the IRS

At IRS.gov you’ll find a variety of free online tools and info, including how to get ready to prepare your return, all forms, instructions and publications, and tips on choosing a tax preparer.

The IRS’ Interactive Tax Assistant tool provides specific answers to many common tax questions based on your individual circumstances. It can determine if you should file a return, your filing status, if someone can be claimed as a dependent, which income is taxable, what expenses can be deducted, and qualifications to claim tax credits.

Create an IRS online account for secure access to your personal tax account information, including balance, payments, and tax records including adjusted gross income.

You can also get help from IRS specialists by calling 800-829-1040.

Watch Out for Fraud

Hundreds of thousands of Americans become victims of tax-related identity theft each year. The average time to resolve tax-return-theft claims is now 22 months. Fortunately, there are steps you can take to protect yourself.

Opt Out of Data Sharing

Unless they obtain your informed and voluntary consent, IRS Free File providers are prohibited from disclosing or using info you submit with your tax return information for purposes other than preparing and filing it. Other tax prep companies must get your consent to share data that you provide while preparing your return. To protect your privacy—and to avoid marketing from financial services—opt out of this type of sharing.