Free Tax Filing Options
Tax preparation companies spend millions advertising "free" filing that often comes with upsells and upgrades. But there are genuinely free options for most Americans. You do not need to pay $50-$200 for basic tax preparation.
Truly Free Options
- IRS Free File (income under $84,000) — Partnership between IRS and tax software companies. Guided preparation using brand-name software. Covers federal and often state returns. Visit irs.gov/freefile to access. Do NOT go to the software company website directly — you will get the paid version
- IRS Direct File — IRS-built free filing tool for straightforward returns. Available in select states. No income limit for eligibility. Covers W-2 income, standard deduction, child tax credit, EITC
- VITA (Volunteer Income Tax Assistance) — Free in-person tax preparation for income under $67,000. IRS-certified volunteers prepare your return. Find locations at irs.gov/vita
- Cash App Taxes (formerly Credit Karma Tax) — Free federal and state filing. No income limits, no upsells. Supports most tax situations including self-employment, investments, and itemized deductions
- MyFreeTaxes.com — United Way partnership offering free guided filing for income under $84,000
When You Should Pay for Tax Preparation
- Self-employment income — Schedule C can be complex. Free software handles it but a CPA may save you more in deductions than they cost
- Rental property income — Depreciation, repairs, and passive activity rules benefit from professional knowledge
- Major life events — Selling a home, inheritance, divorce, stock options. A one-time CPA consultation ($200-$500) can prevent expensive mistakes
- Business ownership — LLC, S-Corp, or partnership returns require professional preparation
For most W-2 employees with standard deductions, free filing is perfectly adequate. Save the $50-$200 and invest it instead.