The IRS states that this free tax filing option is both 'easy' and 'efficient.' Eligibility criteria are as follows.

• Although about 70% of taxpayers are eligible for IRS Free File, only a small percentage of them utilize the software.
• If your AGI was $84,000 or less in 2024, you can use IRS Free File for the 2025 season.
• Tim Hugo, executive director of the Free File Alliance, stated that it's not just for basic refunds.

Over 140 million individual tax returns are expected this season, and many are eligible for a lesser-known free tax filing option.

The IRS Free File program is a joint venture between the government and the Free File Alliance, a nonprofit organization comprising tax software companies.

In a press release in early January, former IRS Commissioner Danny Werfel stated that Free File has assisted millions of taxpayers in filing their returns quickly and easily over the years.

The IRS' Direct File program is now available in 25 states, but it is facing criticism. Biden has announced the final round of student loan forgiveness, and California wildfire victims may be eligible for a one-time $770 payment.

How to qualify for IRS Free File

If your AGI was $84,000 or less in 2024, you can use IRS Free File for the 2025 season.

Your AGI is calculated by subtracting tax breaks from your total income, which will be displayed on line 11 of your 2024 tax return.

Eligibility for Free File options varies among partners, based on factors such as age, income, state residency, and military status, even though there are guided options available for those earning $84,000 or less in 2024.

Hugo mentioned that some partners provide free state tax returns. You can explore all eight partners on this page.

Taxpayers of all income levels can utilize the program's electronic version of a paper-filed return, known as Free Fillable Forms.

Free File 'not just for simple returns'

Although about 70% of taxpayers are eligible for IRS Free File, only a small percentage of them utilize the software, according to Tim Hugo, the executive director of the Free File Alliance.

"It's not just for simple returns," he said.

Hugo explained that there are eight software partners for 2024 filings and each must comply with the most commonly used tax forms and schedules.

Some of the tax forms include Schedule A for itemized deductions, Schedules B and D for investment earnings, and Schedule C for self-employed filers.

Taxpayers can start e-filing returns prepared through Free File partners on Jan. 27, as the program opened on Jan. 10, according to the IRS.

Free File remains a 'valuable resource'

In 2024, the IRS reported a 7.3% increase in Free File returns processed through May 11, totaling 2.9 million returns compared to the same period in 2023.

Werfel stated that this program remains a valuable resource for eligible individuals seeking to file their taxes for free through this distinctive program.

Despite the agency introducing Direct File, a free tax filing service, the IRS extended the Free File program until 2029 in May.

"Hugo stated, "It's like a concealed treasure in the woods, but we need to spread the word.""