Do You Have to Pay to File Your Taxes?
Paying to file taxes isn't always necessary. Learn how your income and tax complexity determine your eligibility for free federal and state filing options.
Whether you have to pay to file your federal income tax return depends on a few personal factors. Your annual income, the complexity of your financial life, and the method you choose to prepare your taxes are the primary considerations. For many taxpayers, free options are readily available, while others may find that paying for a service is more suitable for their specific circumstances.
Free Tax Filing Options
IRS Free File Guided Tax Software
The Internal Revenue Service (IRS) partners with several tax software companies to offer free online tax preparation and electronic filing. This program, known as IRS Free File, is available to any individual or family with an Adjusted Gross Income (AGI) of $84,000 or less for the 2024 tax year. Eligible taxpayers can select a provider on the IRS website, and many partners also offer free state tax return filing.
IRS Free File Fillable Forms
For individuals whose income exceeds the Free File threshold, the IRS provides an alternative called Free File Fillable Forms. This option has no income limitations and is an electronic version of paper IRS tax forms. It performs basic math calculations but offers limited tax guidance, making it best for those comfortable preparing returns without step-by-step assistance.
Volunteer Income Tax Assistance (VITA)
The Volunteer Income Tax Assistance (VITA) program offers free basic tax return preparation to qualified individuals. VITA sites are available to people who make $67,000 or less, persons with disabilities, and taxpayers with limited English proficiency. The program is staffed by IRS-certified volunteers, who must pass tax law training that meets or exceeds IRS standards before they can assist taxpayers.
Tax Counseling for the Elderly (TCE)
A similar program, Tax Counseling for the Elderly (TCE), also provides free tax help from IRS-certified volunteers. While open to all taxpayers, the TCE program gives special attention to those who are 60 years of age or older. Volunteers specialize in questions about pensions and retirement-related issues unique to seniors, and a majority of TCE sites are operated through the AARP Foundation’s Tax-Aide program.
Paid Tax Preparation Services
Commercial Tax Software
If your income is above the AGI limit for IRS Free File, you will likely need to pay for commercial tax software. Paid software is also necessary for individuals with complex tax situations not covered by free versions, such as filing schedules for investment income, business profits and losses, or rental property income. Access to these advanced forms and features requires purchasing an upgraded product.
Hiring a Tax Professional
Engaging a tax professional, such as a Certified Public Accountant (CPA) or an Enrolled Agent (EA), is another paid option. This service is suited for individuals with highly complex financial profiles, including high-net-worth taxpayers, business owners, or those navigating significant life events. A professional provides personalized advice and is authorized to represent the taxpayer before the IRS, but this level of service comes at a higher cost than software.
Information and Documents Needed to File
Personal Information
Before starting your tax return, you must gather correct personal information for yourself, your spouse, and any dependents you plan to claim. This includes the full legal name, date of birth, and Social Security Number (SSN) for each person. If a person does not have an SSN, you will need their Individual Taxpayer Identification Number (ITIN). You will also need your current mailing address.
Income Documents
You will need all documents that report income received during the tax year. These forms include:
- Form W-2 from an employer
- Form 1099-NEC or Form 1099-K for self-employment or gig work
- Form 1099-INT for interest earned
- Form 1099-DIV for dividends
- Form 1099-G for unemployment compensation or state tax refunds
Documents for Deductions and Credits
Collect records of expenses that may qualify for deductions and credits. Important documents and records include:
- Form 1098-E for student loan interest paid
- Form 1098-T for college tuition expenses
- Receipts for any charitable contributions
- Records of childcare expenses, including the provider’s Tax ID number
- Form 1095-A if you received health insurance through the marketplace
Bank Account Information
Have your bank account information ready for direct deposit. You will need to provide your bank’s routing number and your personal account number. These same numbers can be used to make a direct debit payment to the IRS if you owe taxes, and direct deposit is more secure than receiving a paper check.
How to Access Free Filing Programs
For IRS Free File
To use the IRS Free File program, you must begin the process through the official IRS website. Navigating directly to a commercial tax software company’s website may lead you to a paid product, even if you are eligible for the free version. The IRS portal has a tool that helps you find a suitable provider, and this ensures you are using the official, no-cost offer established through the IRS partnership.
For VITA/TCE
To find a local site, use the VITA/TCE Locator Tool on the IRS website to search by zip code. You can also call the IRS at 800-906-9887 for location information. Many sites require an appointment, so call ahead to confirm hours and service availability.