Personal Finance: How to Get Free Tax Filing Services

When you are getting ready to file your taxes and check your online accounts, you may be wondering how much it will cost to do your taxes. The process is not as expensive and time-consuming as you might think. In fact, in 2025, millions of Americans have the option to use user-friendly online tools to file their federal taxes for free. Additionally, there are some free resources available to connect you with IRS-approved professionals to assist you.

Before you panic about tax preparation fees, let’s delve into some of your options.

“Free File” is a program jointly operated by the IRS and partner tax preparation software companies in the United States. It is designed to help eligible taxpayers file their federal taxes safely and for free. Generally, if your income in 2024 was $84,000 or less, you qualify to use Free File.

According to data from the Free File Alliance, over 100 million people in 2025 are eligible for free filing. This includes partners like TaxAct and TaxSlayer. However, the IRS notes that you won’t access the free services by going directly to these companies’ websites. You need to visit the IRS’s Free File page to access their partner sites.

The easiest way to find the Free File partner that suits you is by using the IRS tool. It will ask you questions about your tax filing status, age, residency, income, and eligibility for certain tax credits.

To determine which services you qualify for, you need to provide the following information:

• Wages, tips, and other compensation (W-2 form)
• Self-employment income
• Social security benefits (SSA-1099 form)
• Taxable retirement benefits, including pensions
• Unemployment compensation (1099-G form)
• Investment and interest income
• Student loan interest paid (1098-E form)
• Individual retirement account (IRA) contributions

Not all Free File programs offer free state tax filing. Check your state’s tax department website to see if free filing programs are available in your state.

“Direct File” is a new IRS program launched in 2024 and expanded in 2025. It allows residents of certain states to file simple federal tax returns for free.

Unlike Free File, which partners with private tax service companies, Direct File is operated directly by the IRS.

Direct File offers some benefits:

Similar to tax software like TurboTax, it uses an interview-style format to help taxpayers complete their tax returns.
It is a convenient paperless option that speeds up the tax refund process by filing electronically.
As it eliminates the need for manual data entry, there is a reduced risk of errors in tax filing. Additionally, taxpayers with simple returns can save on tax preparation fees.

However, there are restrictions on who can use Direct File based on income type, state, and tax situations.

If your income in 2024 exceeds $200,000, you are not eligible for Direct File. If your household has more than one employer, the income limit drops to $168,600. Married couples filing jointly do not qualify for Direct File if their total income exceeds $250,000.

Direct File is generally not applicable to freelancers and other types of self-employed individuals. Those earning tips or alimony may also not be eligible.

If your income only comes from the following sources, you may use Direct File:

• Income from an employer (W-2 form)
• Unemployment compensation (1099-G form)
• Social security benefits (SSA-1099 form)
• Retirement income (1099-R form)
• Interest income (1099-INT form)
• Alaska Permanent Fund dividends

Beginning this month, Direct File will support contributions to common retirement plans like 401(k), pensions, annuities, and 403(b) or government 457(b) plans. If you transfer funds directly from an employer-sponsored retirement plan to another plan or an individual retirement account (IRA), you can use Direct File.

However, if you have IRA contributions (other than direct transfers) or distributions from an IRA, you cannot use Direct File.

Direct File has other limitations. If you use Direct File, you must take the standard deduction and cannot itemize deductions.

If you qualify for Direct File, you can only claim the following credits:

• Child Tax Credit
• Credit for Other Dependents
• Child and Dependent Care Credit
• Earned Income Tax Credit
• Premium Tax Credit
• Saver’s Credit
• Credit for the Elderly or the Disabled

You cannot use Direct File to claim education expenses, energy-efficient home improvements, or adoption credits.

These rules present barriers for many taxpayers.

If you prefer working with professionals in person, you may consider the following programs:

• Volunteer Income Tax Assistance (VITA) by the IRS
• Tax Counseling for the Elderly (TCE)
• AARP Foundation Tax-Aide

According to the Consumer Financial Protection Bureau (CFPB), these programs have been in existence for over fifty years and consist of IRS-certified tax preparers meeting high-quality standards.

You may be eligible to participate in these programs if you meet any of the following criteria:

• Income is $67,000 or below
• Have a disability
• Age 60 or older
• Limited English proficiency or English as a second language

Additionally, military personnel, qualified family members, surviving spouses, or recently separated veterans can access free tax assistance through MilTax provided by the Department of Defense.

During this tax season, millions of Americans are eligible to file their federal taxes online for free. Many can also get free assistance from professionals in person.

Consider options like Free File, Direct File, IRS VITA, AARP Foundation Tax-Aide, or TCE, as well as MilTax for military personnel.

The original article “How to Find Free Tax Help” was published on the English-language website of Dajiyuan Times.

Dajiyuan Times. All rights reserved ©2025. This article represents the author’s views and opinions and is for general information purposes only, with no intent for advice or solicitation. Dajiyuan does not provide investment, tax, legal, financial planning, estate planning, or other personal finance advice. Dajiyuan does not guarantee the accuracy or timeliness of the article’s content.