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- Free File is a program that allows taxpayers to submit their tax returns for free.
- The Free File Program is designed to make tax filing easier for taxpayers with an adjusted gross income of less than $84,000.
- Direct File is also being extended to new states by the IRS. The IRS offers tax preparation for free to anyone, regardless of income. However, only certain states are participating.
Internal Revenue Service has announced that starting this Friday, millions of taxpayers who qualify will be able start their tax returns 2024 for free.
IRS Free File: Taxpayers in all 50 states with an adjusted gross income (AGI), of at least $84,000, are eligible. Tax returns will be accepted by the IRS starting on Jan. 10 but will not have to be submitted until later in January when tax season begins.
Tax preparation programs provide free online software to many taxpayers, in order to make it cheaper and easier to file tax returns. According to the National Taxpayers Union Foundation’s 2024 report, American taxpayers will spend at least $133 million and 6.5 billion man-hours to file their taxes.
IRS Expands Its Direct Filing Program
After positive reviews during the pilot program, the IRS is expanding its Direct File program compared to last year and has doubled the number of states in which it is offered.
Direct File is a program that allows all taxpayers, no matter what their AGI may be, to electronically file tax returns for free through the IRS’s website. The Direct File program will become available once the official tax season opens in the second half of January.
The program, which does not require a minimum income level, is available only in 24 states. The program is not available to taxpayers with itemized deductions and those who receive income via the gig-economy, rentals, businesses, or other sources.
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