Every tax season, millions miss out on a little-known yet invaluable resource: the IRS Free File program. Despite nearly 70% of taxpayers qualifying, only a small portion take advantage of this free service. For the 2025 filing season, individuals with an adjusted gross income (AGI) of $84,000 or less for 2024 are eligible to use this convenient tool.
“It’s not limited to simple returns,” noted Tim Hugo, executive director of the Free File Alliance, emphasizing the program’s broad accessibility.
What Is IRS Free File?
IRS Tax Season 2025 Update, Essential Updates and Key Dates You Must Prepare For
IRS Free File is a public-private partnership between the IRS and the Free File Alliance, a coalition of tax software providers. This collaboration ensures eligible taxpayers can access reliable, easy-to-use software to file their taxes at no cost.
Who Can Use IRS Free File?
The key to eligibility lies in your adjusted gross income (AGI), calculated by subtracting certain deductions from your total income. If your AGI was $84,000 or less in 2024, you qualify. Check line 11 on the first page of your 2024 tax return to confirm.
Additionally, eligibility may depend on your age, state residency, income bracket, and military status. Each of the program’s eight partners has its own criteria, so reviewing your options is essential.
Free State Tax Filing Options
Many partners within the IRS Free File program also provide free state tax filing, further easing the financial burden of tax season. This added benefit makes Free File an even more attractive option for those looking to streamline the process.
Complex Tax Returns? No Problem
One common misconception is that Free File only works for simple tax filings. In reality, it accommodates a variety of complex scenarios.
Each participating software provider is required to support commonly used forms and schedules, such as:
- Schedule A for itemized deductions
- Schedule B for investment income
- Schedule C for self-employment earnings
IRS Tax Season 2025 Update, Essential Updates and Key Dates You Must Prepare For
These features ensure that taxpayers with diverse financial situations can still benefit from the program.
Free Fillable Forms
For those comfortable navigating tax forms independently, the Free File program also offers Free Fillable Forms. This digital alternative to paper filing is available to taxpayers of all income levels and provides a straightforward way to complete your return.
When Does IRS Free File Open?
The IRS Free File program launched on January 10 for the 2025 season. Taxpayers can begin e-filing through the program’s partners starting January 27. Filing early not only ensures prompt refunds but also reduces the risk of identity theft.
Why IRS Free File Is Underused
Despite being accessible to 70% of taxpayers, IRS Free File remains underutilized. Tim Hugo describes the program as “a hidden gem in the forest,” highlighting the need for increased awareness.
Free File Continues to Expand
During the 2024 season, the program processed 2.9 million returns by mid-May—a 7.3% increase from the same period in 2023. Former IRS Commissioner Danny Werfel praised its value, calling it a “valuable resource” for eligible taxpayers.
Although the IRS has introduced its Direct File service, the agency has extended the Free File program through 2029, ensuring this cost-free option remains available for years to come.
Take Advantage of IRS Free File
IRS Tax Season 2025 Update, Essential Updates and Key Dates You Must Prepare For
For eligible taxpayers, IRS Free File is a powerful tool to simplify the often-daunting tax filing process. With its easy-to-use interface, support for complex returns, and the possibility of free state filing, this program can save both time and money.
Don’t let this hidden gem remain undiscovered—explore IRS Free File this tax season and file your taxes with confidence.
