Introduction
Many taxpayers wonder if they can file their taxes for free without paying for expensive software or hiring a tax professional. Fortunately, the IRS and several tax software companies offer free tax filing options, depending on your income level and tax situation.
This guide explains who qualifies for free tax filing, the best free tax software options for 2025, and how to avoid hidden fees.
Who Qualifies for Free Tax Filing?
The IRS provides free tax filing options for taxpayers who meet certain criteria.
IRS Free File Program
- Available to taxpayers with adjusted gross income (AGI) of $79,000 or less in 2025.
- Free federal tax return filing through IRS-partnered software providers.
- Some providers offer free state filing, while others charge a small fee.
Free File Fillable Forms (For Any Income Level)
- Available to all taxpayers, regardless of income.
- Requires manual entry of tax forms (not recommended for beginners).
Free Tax Filing for Certain Groups
- Military Members: Eligible for free tax filing through MilTax (Department of Defense program).
- Seniors & Low-Income Taxpayers: Free filing available through Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs.
Best Free Tax Filing Software for 2025
Several tax software providers offer completely free filing for simple tax returns. Below is a comparison of the best options:
| Tax Software | Best For | Free Federal Filing | Free State Filing |
|---|---|---|---|
| TurboTax Free Edition | W-2 employees & students | Yes | Yes (limited states) |
| H&R Block Free Online | W-2 employees & dependents | Yes | Yes |
| Cash App Taxes | 100% free filing (simple & complex returns) | Yes | Yes |
| FreeTaxUSA | Affordable paid upgrades | Yes | No ($15 per state) |
| TaxSlayer Simply Free | W-2 employees with simple returns | Yes | Yes (limited states) |
Key Differences:
- Best Completely Free Option: Cash App Taxes (offers free federal & state filing).
- Best for W-2 Employees: TurboTax Free Edition or H&R Block Free Online.
- Best for Low-Cost State Filing: FreeTaxUSA ($15 per state).
What’s Included in Free Tax Filing?
Most free tax software covers basic tax situations, including:
- W-2 income (for employees).
- Standard deduction (no itemized deductions).
- Child Tax Credit and Earned Income Tax Credit eligibility.
What’s NOT included in most free versions?
- Self-employment income (1099-NEC, 1099-K).
- Investment income (stocks, cryptocurrency, rental properties).
- Itemized deductions (mortgage interest, medical expenses, state taxes).
If you need to file these forms, you may need to upgrade to a paid plan.
How to File Taxes for Free Step by Step
Step 1: Determine Eligibility
- Check if your AGI is below $79,000 to qualify for IRS Free File.
- If not eligible, consider Cash App Taxes or FreeTaxUSA.
Step 2: Gather Tax Documents
- W-2 form (from employer).
- 1099 forms (if applicable).
- Tax deductions and credits documentation.
Step 3: Choose a Free Tax Filing Service
- Use IRS Free File or one of the software options above.
Step 4: File Electronically
- E-file through an approved tax software to get a faster refund.
- Opt for direct deposit to receive your refund sooner.
Step 5: Review & Submit Your Return
- Double-check for errors before submitting.
- Save a copy of your tax return for future reference.
Hidden Fees to Watch Out For
Many “free” tax filing services advertise free filing but charge fees for:
- State tax returns (only federal filing is free).
- Upgrading for additional tax forms (self-employment, investments, etc.).
- Paying tax preparation fees using your refund (may cost extra).
How to Avoid Extra Fees
- Read the fine print before starting a free tax return.
- Use Cash App Taxes if you need free federal & state filing.
- If filing with TurboTax or H&R Block, ensure your tax situation qualifies for their free edition.
Alternatives to Free Tax Filing Software
IRS Free File Fillable Forms
- Best for taxpayers comfortable with manual entry.
- Not recommended for first-time filers or complex returns.
VITA & TCE Programs
- Free in-person tax help for low-income, elderly, and disabled taxpayers.
- Available through IRS-certified volunteers.
Local Credit Unions & Banks
- Some financial institutions offer free tax preparation assistance to members.
Frequently Asked Questions (FAQs)
1. Who qualifies for IRS Free File?
Taxpayers with AGI below $79,000 can use IRS Free File partner software for free federal tax filing.
2. Is Cash App Taxes really 100% free?
Yes, Cash App Taxes offers completely free federal and state filing, including for self-employed filers.
3. Can I file state taxes for free?
Some providers offer free state filing, but many charge extra. H&R Block Free, TurboTax Free, and Cash App Taxes offer free state filing for eligible taxpayers.
4. Can I file for free if I’m self-employed?
Most free filing services do not cover self-employment income. Cash App Taxes is the best free option for 1099 workers.
5. Does free tax software include audit support?
Free filing options do not include audit support. If you need audit protection, you may need to upgrade to a paid plan.
Conclusion
Filing taxes for free is possible for many taxpayers, especially W-2 employees, students, and those with simple tax returns. The best free tax filing software for 2025 includes IRS Free File, Cash App Taxes, and H&R Block Free Edition. Be cautious of hidden fees, and always review your tax return before submission.
For professional tax guidance, schedule a meeting with our CPA Anshul Goyal by clicking at https://calendly.com/anshulcpa/ now.
About Our CPA
Anshul Goyal, CPA, EA, FCA, is a licensed Certified Public Accountant in the United States and an Enrolled Agent admitted to practice before the IRS. He specializes in IRS compliance, tax planning, and digital tax filing solutions.
Disclaimer
This article is for informational purposes only and should not be considered legal or tax advice. Every taxpayer’s situation is different. Consult a qualified CPA or tax professional before making tax-related decisions.