How to File Your Taxes for Free
Most people can file at no cost, and a large number pay anyway. The products that cost the most are aimed at the people who can least afford them.
The Free Options, Ranked by Who They Suit
Volunteer tax preparation, in person
The VITA programme offers free preparation by IRS-certified volunteers, generally for people on low to moderate incomes, people with disabilities and people with limited English. Tax Counseling for the Elderly does the same with a focus on people over 60 and retirement questions.
This is the best option for anyone whose return is not entirely simple, because a trained person looks at it. They also catch credits people miss. Find a site through irs.gov or by calling 211.
IRS Free File
A partnership between the IRS and commercial software providers, offering free guided preparation below an income threshold. The important detail: you have to reach it through irs.gov. Going to the same company directly usually lands you in a paid product instead.
IRS Direct File
The IRS’s own free filing service, available in a growing number of states for reasonably straightforward returns. Availability and eligibility have changed year to year, so check what applies before assuming.
Free Fillable Forms
Electronic versions of the paper forms, available at any income, with no guidance. Fine if you know what you are doing and nothing else.
MilTax
Free preparation and filing for service members and many veterans, regardless of income, through Military OneSource.
Free products are frequently designed to move you to a paid tier partway through, often after you have entered everything. A single common form can trigger it. If that happens, your data is not lost by starting again somewhere genuinely free, and it is usually worth doing.
What to Avoid
- Refund anticipation loans and "advances". Borrowing against your own refund, with fees that work out to a very high effective rate over the few weeks you wait.
- Fees taken out of your refund. Convenient, and usually carries an extra charge for the privilege.
- Anyone who will not sign your return. Paid preparers are required to sign and include their identification number. A preparer who refuses is a serious warning sign.
- A preparer paid a percentage of your refund. That structure creates exactly the wrong incentive, and you are the one liable for what is filed.
Before You Start
Gather: identification and Social Security numbers for everyone on the return, all income forms including W-2s and any 1099s, last year’s return if you have it, childcare provider details, tuition statements, and your bank details for direct deposit.
Direct deposit matters. It is faster than a cheque and cannot be stolen from a mailbox.
File Even When You Do Not Have To
Below the filing threshold you may not be required to file, and filing anyway is frequently worth real money: withheld tax comes back, and refundable credits are paid out only if you claim them. This is the main reason large sums go unclaimed each year.
You can also generally claim a refund for up to three prior years, so an unfiled year is often still recoverable.
The penalty for filing late is substantially larger than the penalty for paying late. Filing and then arranging payment is always better than not filing.