It's Monday, and tax season, to boot — but at least the latter doesn't have to be as hard as you think. Senior reporter Allie Volpe is here to talk about four ways you could potentially file taxes for free. —Caroline Houck, senior editor of news |
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How to file taxes for free |
How many of you have ever felt personally victimized by the US tax code? Okay, "personally victimized" might be a bit of a stretch, but it's fair to say that doing your taxes in America is a stressful endeavor. Even those with fairly straightforward returns — single people with income solely from a full-time job — might think of tax season like a game of chance: Did I withhold enough from my paychecks? Will I even get a refund? Could I owe? Add in any sort of life change, like homeownership, having children, or income from freelance jobs or other sources, and the process only gets more complicated. To add insult to injury, most people pay for tax preparation services. Almost three-quarters of taxpayers are eligible to file their taxes for free, however a miniscule number actually take advantage of these programs. Let me repeat that: For most people, there are ways to do your taxes for free. As part of a package of stories Vox is publishing this month to help people navigate tax season, I outlined four free methods Americans have at their disposal for tax preparation services. (Stay tuned for more great reporting on everything from accountant-approved tax advice to how the ultra-rich get around paying theirs.) If you're rich or have complicated taxes ... these might not apply. Sorry! But for the rest of us, here's what to know. |
What is it? Free File is a partnership between the IRS and tax preparation software companies. Taxpayers can file their federal tax return with help from free guided tax preparation software. Some offer free state tax return filing as well. Eight tax preparation software providers are part of Free File: OnLine Taxes at OLT.com, 1040NOW.net, TaxAct, FileYourTaxes.com, TaxSlayer, FreeTaxUSA, ezTaxReturn.com, and 1040.com. Who is eligible? Anyone whose adjusted gross income was $79,000 or less in 2023 is eligible to use the Free File guided preparation programs. Adjusted gross income, according to the IRS, is total income (such as tips, rents, interest, and stock dividends) minus deductions (like self-employed health insurance premiums or student loan interest paid). Even if your adjusted gross income is above $79,000, you can still use the Free File program with Free File Fillable Forms. These are the same Free File electronic forms, just without any instruction or guidance; you'll complete these to file your federal taxes. Just a note: This can be complicated, and you'll need to prepare and file your state taxes separately. |
What is it? Direct File is a new pilot program built and run directly by the IRS. It will launch in mid-March. Those eligible can file their federal taxes for free online with step-by-step guidance in English and Spanish. Taxpayers can also live-chat with customer service representatives. You can sign up to be notified when the pilot is open. Who is eligible? Since Direct File is still in the pilot stage, only people with simple returns who live in certain states are eligible. If your wages exceed $200,000, or $160,200 if you had multiple employers, you are not eligible for Direct File. Other situations are ineligible, including but not limited to cases like: you're filing jointly with your spouse and they earned $200,000 or more (or $160,200 if your spouse had more than one employer) or you and your spouse's combined wages total more than $250,000.
Direct File is for those with simple tax needs, such as income from a W-2, Social Security income, unemployment compensation, and interest income of $1,500 or less; credits like earned income tax credit, child tax credit, or credit for other dependents; and whose deductions are limited to the standard deduction, student loan interest, and educator expenses.
If you have income from gig work or a business, or if you itemize deductions or claim certain other credits, you are not eligible. Direct File is available in only about a dozen states, so check if yours participates and whether your tax situation is eligible here with this form. |
Volunteer Income Tax Assistance and Tax Counseling for the Elderly |
What is it? Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) are programs that offer free, in-person tax preparation by an IRS-certified tax professional. These services are available to those who make under a specific amount, who need assistance, or who are 60 years of age or older. VITA/TCE sites prepare returns for W-2 income, interest income, dividends received, state tax refunds, unemployment benefits, earned income tax credit, child tax credit, and more. They do not prepare Schedule C with loss, depreciation or business use of home, capital gains and losses, non-deductible IRA, and other more complicated returns.
Who is eligible?
People who make $64,000 or less, people with disabilities, and those who speak limited English are eligible for VITA. Taxpayers over the age of 60 are able to receive free tax assistance through TCE. |
What is it? Members of the military and some people closely linked to them can file their federal and state tax returns for free via an online platform called MilTax. The service includes tax preparation, electronic filing, and support from tax consultants and is designed with military life in mind, with guidance on deployments, combat and training pay, housing and rentals, and multi-state filings. There is no income limit. Who is eligible? Active, retired, or discharged duty service members of the Army, Marine Corps, Navy, Air Force, and Space Force, and their immediate family members (spouses, children, and anyone who has legal responsibility for their children) are eligible. In addition, National Guard and reserve service members, regardless of their activation status, and their immediate families are eligible. Plus, immediate family, caregivers, and parents of wounded, ill, or injured service members, and surviving spouses of active-duty, National Guard, and reserve service members can also use MilTax. —Allie Volpe, senior reporter |
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- Why electricity demand is surging for the first time in over two decades: And why that means the switch to carbon-neutral sources is important. [Heatmap]
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How activists blur the lines between birth control and abortion |
Vox's Rachel Cohen explains the anti-abortion movement's playbook. Read more » |
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