IRS To Open Free File for Millions Ahead of Tax Season

The Internal Revenue Service's (IRS) Free File Guided Tax Software will be available to use as of Friday, January 10 for the 2025 tax filing season.

Why It Matters

IRS Free File is one way in which taxpayers can file their returns and payments with the federal tax service free of charge. Usually, private tax preparers charge fees on some or all of their services.

The Free File Alliance says that 70 percent—approximately 100 million—of U.S. taxpayers can use the service. More than 71 million returns have been filed since the program began in 2003.

What To Know

Beginning January 10, the IRS Free File program will start accepting individual tax returns. Millions of taxpayers across the country can access free software tools provided by IRS Free File partners by visiting IRS.gov. All federal income taxes are due on April 15, 2025.

A stock image of an individual income tax form with U.S. dollars. Taxes are due to the IRS on April 15 this year. GETTY

Who Can Use IRS Free File?

Those with an Adjusted Gross Income (AGI) of $84,000 or less in 2024 will be able to use Free File for their federal income tax returns this year. Some servicers also offer free state returns, according to Nerd Wallet.

Who Offers Free File?

For 2025, the following IRS "trusted partners" offer Free File services:

• 1040Now
• Drake (1040.com)
• ezTaxReturn.com
• FileYourTaxes.com
• On-Line Taxes
• TaxAct
• TaxHawk (FreeTaxUSA)
• TaxSlayer
  

IRS Free File Fillable Forms

For those who earn above the $84,000 AGI, the IRS offers Free File Fillable Forms. These are "electronic versions of IRS paper forms are ideal for individuals who are comfortable preparing their own taxes using IRS instructions and publications."

It allows taxpayers to digitally fill out several common federal income tax forms and submit them using the IRS' online e-file service. This is available to all taxpayers, regardless of their income, place of residence or age, and will open for taxpayers on January 27.

What People Are Saying

IRS Commissioner Danny Werfel said in a press release issued on January 7: "The IRS remains committed to its partnership with Free File Inc. to ensure taxpayers have free and secure options for filing their taxes electronically.

"Taxpayers have multiple filing choices, including trusted tax professionals, tax software, Free File, Direct File or free preparation services through IRS partners. Over the years, Free File has helped millions of taxpayers, providing a fast and simple way to file their returns. This program continues to be a valuable resource for eligible individuals looking to file their taxes for free through this unique program."

What's Next

Another tax preparation option is IRS Direct File, which allows taxpayers to prepare and file taxes directly with the IRS. This will open at the end of January, though no specific date has been given. Newsweek has contacted the IRS via email outside of regular working hours for clarification.