IRS Free File 2024: Everything You Need to Know About Free Tax Filing

People often find the tax season to be stressful, but the IRS Free File program offers a low cost way for millions of people in the U.S to file their federal taxes electronically. This article will help you to understand how IRS Free File operates, for whom it is available and how it is beneficial for such individuals.

What is an IRS Free File?

IRS Free File is a service provided jointly by the Internal Revenue Service (IRS) and several private companies for preparing taxes. It enables users who qualify as low income taxpayers to complete their federal income tax returns through the use of online software free of charge. The main purpose of this service is to help and simplify the process of payment of taxes for the people who have the AGI of $73000 or less.

IRS Free File: Meaning and Definition

To elaborate, IRS Free File is a program that allows taxpayers to have guided access to software used in preparing federal tax returns free of cost. The program provides an option for free e-file and also helps the user in understanding deduction, credit and other issues related to the tax. Thus, it is one of the safest ways through which low to middle-income earners can file their taxes for free without having to purchase expensive software.

IRS Free File: A Brief History

The IRS Free File is a U.S service which was started in 2003 through a partnership between the IRS (Internal Revenue Services) and several private tax services companies. The intended agenda was to make e-filing of tax returns available for the taxpayers particularly those with specified income levels and without charges.

For many years, millions of U.S citizens have used this service to file their federal taxes, without having to spend money on tax preparation. In 2020, the IRS reaffirmed the efforts on the program by extending its use until 2029, which means that a vast segment of the U.S population shall continue to receive free, user-friendly tools for filing their taxes online.

Why IRS Free File is Important: The Need for the Program

The IRS Free File program is designed for ensuring fair access to tax preparation services for taxpayers who otherwise may not be able to have it. It has been designed to ensure all taxpayers have reasonable and equal opportunity to file taxes at no cost. To middle- and lower-income taxpayers, having to pay for professional tax preparation services can be very costly. Thus, the provision of a free option guarantees that the public can discharge their federal tax commitments without undue expense. This way, the IRS allows the taxpayers to fulfill their federal tax responsibilities without stress and costs that can be avoided.

How IRS Free File Helps Taxpayers

IRS Free File helps in several ways:

• Financial Relief: IRS Free File ensures that the public does not have to spend their money to pay professionals to prepare their taxes on their behalf. This in turn helps the eligible taxpayers to file their returns, they will not be pressed down by financial issues.
• Simplified Filing: IRS Free File is a program that presents potential users with the tools that will help them complete and file their taxes step by step. It confirms that taxpayers are correct in their deductions and credits in case they are wrong thereby helping them get their correct refund.
• Convenience: IRS Free File enables taxpayers to prepare and file their taxes from the comfort of their homes. It technically means you do not need to go to a tax professional or buy software to do your taxes.
• Secure Filing: The use of IRS Free File gives taxpayers the confidence that their personal and financial details are safe. It is also important for the Tax authorities to ensure that software providers who contract with the IRS to provide such services must adhere to high security standards.

Security of IRS Free File

When preparing taxes using this IRS Free File program, the security of the user is a priority. The IRS has contracted trusted and recognised tax preparation software companies and all of them use cryptographic processing for the security of the taxpayer’s information. Furthermore, these companies are legally bound to adhere to the security guidelines set by the Internal Revenue Service, for instance, use of multi-factor authentication to guarantee that your personal data is secure when submitting your returns.

Data Privacy

There is an agreement between the Free File Alliance that comprises the companies producing the tax software being used by the IRS and they have standard guidelines when it comes to the protection of the information that is to be shared. The details regarding personal and financial status of taxpayers are not disclosed with the third parties and such information is not retained at IRS.

Also Read: How to Track Your IRS Tax Refund: A Step-by-Step Guide

How IRS Free File Works with Tax Preparation Companies

IRS Free File is an internet based program in which the IRS collaborates with private companies providing software solutions for filing tax returns. These firms provide complimentary services of preparing and filing federal tax returns for eligible clients. The IRS makes sure that the services are secure, simple and easily accessible to the general public.

Popular tax preparation companies participating in IRS Free File include:

• FileYourTaxes.com
• On-Line Taxes (OLT.com)
• ezTaxReturn.com
• TaxAct
• TaxSlayer
• 1040NOW
• FreeTaxUSA

Although the features of each site can vary slightly, for example, where it is based and whether it offers free state filing in certain circumstances, all of the software packages let taxpayers complete and submit their federal tax returns for free if they meet certain income guidelines.

IRS Free File Alliance

The Free File Alliance is a coalition of tax preparation companies that have consented to offer free tax preparation software for the general public in cooperation with the IRS. These companies have agreed to provide their services free of cost to the taxpayers as per the income categorization of the program. The partnership provides the general public with an accurate, efficient, and secure tax filing software to enable them to meet their tax obligations.

When will the IRS Free File start for the year 2024?

IRS Free File for 2024 is estimated to be available around mid-january 2024, the same time around which the IRS starts accepting federal tax returns for a fiscal year. The services enable the preparation of tax returns by taxpayers, and they can submit their returns electronically as soon as they are process.

When Will IRS Free File Be Available 2024?

IRS Free File generally opens in mid January and remains accessible throughout the federal tax filing season in April. Taxpayers who want an extension can use IRS Free File to extend their return date to October 15.

The following is a list of requirements a taxpayer needs to comply with in order to use the IRS Free File system.

Before starting with IRS Free File, there are a few things you need to gather:

• Income Information: You need to be prepared with your W-2s, 1099s or any income relevant papers.
• Social Security Numbers (SSNs): Some of the information that you will require to open an account includes: your SSNs, your spouse’s SSN if any, and SSNs of your dependents.
• Previous Year’s Tax Return: If you had filed tax returns in the previous year then it is wise to have a copy of the filing ready for reference.
• Filing Status: Determine the tax filing status which can be single, married filing jointly, married filing separately or head of household.
• Bank Account Information: To get your money back through wire, ensure you have details such as account number and routing number.

Using ‘Pay’ Tab give bank details to directly receive the refund amount in your bank Account

Free File Program for a User

To use the Free File program, follow these steps:

1. Visit the IRS Free File Website: The first step is to go to the homepage of the IRS Free File at the IRS website. The site will help you to decide whether you are qualified for the free filing or not.
2. Choose a Tax Software Provider: Currently there are several tax software providers who collaborate with the IRS. You can decide which option is more suitable for you among the options provided. Based on the options chosen, some providers may include such value-added services as state tax filing or tax returns review.
3. Create an Account and Begin Filing: Following provider selection, you will sign up for an account and begin the process of completing your taxes. The software will request your personal and financial data and explain how to input your incomes, deductions, and credits.
4. File Your Return: Once you are through with that, you should go through the information you want to return and verify if it is correct before submitting the return electronically. The IRS will acknowledge the receipt of your return filing and in case you are entitled to a refund, you can choose to go for direct deposit for faster delivery of your money.

Filing Your Taxes Online for Free

1. Go To IRS Free File Official Website (https://www.irs.gov/)

 2. Click on ‘File Your Taxes For Free’ 

3. In the window that opens up click on ‘Explore Free Guided Tax Software’

4. The window for ‘IRS Free File: Guided Tax Software opens up’. Click on ‘Browse All Trusted Partners’ to get the list of all IRS Free File Online Tax Preparation Services available

5. In the window that opens up. Fill in the required details to proceed. You can also select amongst the various tax preparation service providers here as per your income & preferences.

6. To help yourself find an IRS Free File Trusted Partner

7. Fill in the details in the window that opens up to proceed

How to File IRS Extension Online for Free

If for some reason you are not able to file your tax return by the April due date, you can use the IRS Free File program to file an extension. Filing for an extension allows you to submit your completed return by October 15 but any taxes due must still be paid by the deadline in order to avoid racking up on interests and penalties.

To file an extension:

Access IRS Free File: Choose one of the tax preparation providers that offer free extensions.

• Fill Out Form 4868: This is the Form used to apply for an extension of up to 6 months for filing of the U.S Individual Income Tax Return.
• Submit the Extension: After completing the form, you can file it online using any of the approved Free File options that you choose.

By Filling Form 4868 electronically you can get an automatic extension of time to file your tax returns.

To access form 4868 click here – https://www.irs.gov/pub/irs-pdf/f4868.pdf

Filing Previous Year Returns with IRS Free File

In many cases, if you failed to file taxes for a prior year, the IRS Free File usually allows filing only the current year tax return. However, it is still possible to file prior year returns using the IRS through paper forms or with other online services but at a cost.

Related Tools and Information

In addition to Free File, the internal revenue service offers several tools and resources to help taxpayers:

• IRS Tax Withholding Estimator: An application that assists a person in changing his or her tax bracket in order to ensure that they do not pay more tax than required or vice versa.
• Where’s My Refund: A service that enables you to monitor the progress of your tax return after submitting it for approval.
• Interactive Tax Assistant: A tool that provides answers to legal questions regarding taxes and allows you to decide whether you are entitled to certain deductions and credits.

You can always check the status of your Refund on ‘Where’s My Refund’ option on the ‘Refunds’ Tab

Conclusion

The IRS Free File program is one of the best tools that taxpayers can use in filing their federal taxes with no cost. This simple and efficient tool can assist you with your return or extension to meet your tax filings without costly software programs. So, as the tax season for the year 2024 approaches, it is high time to familiarize yourself and possibly take advantage of the IRS Free File program.

FAQ

When Does the IRS Free File Open for 2024?

For the 2024 filing season, the Internal Revenue Service Free File program started in mid January 2024, the same time around which the IRS starts accepting federal tax returns for a fiscal year.

How to File IRS Extension Online Free?

You can obtain an IRS extension online for free through IRS Free File by using Form 4868, which grants an extension for six months.

Which IRS Free File Is Best?

The best internal revenue service free file provider will vary depending on the particular situation concerning an individual’s taxes. Simplified interfaces are available with FileYourTaxes.com, On-Line Taxes (OLT.com), ezTaxReturn.com, TaxAct, TaxSlayer, 1040NOW, FreeTaxUSA

Who Is Eligible for IRS Free File?

To be able to qualify for the use of IRS Free File, the applicant must have an Adjusted Gross Income (AGI) of $73000 or less for a financial year.

Is FreeTaxUSA Approved by the IRS?

Yes. FreeTaxUSA is an IRS-approved Free File option and allows all taxpayers to file federal taxes for free if they qualify.

Is the IRS Free File Hard?

Internal revenue service free file is not complex and has easy procedures to follow; it gives procedures on the way to go about it when filing taxes.