Who can file taxes with the IRS for free this year?

Tax filing season is underway.

Americans can file their 2021 tax returns to the IRS without any cost.

Over 70% of Americans who file taxes can submit their returns to the IRS without any cost, according to the agency. Additionally, many more Americans may be able to file their 2021 tax returns at little to no cost through other tax preparation programs.

Tania Brown, a certified financial planner in Atlanta and financial coach at SaverLife, mentioned other underused services that can aid people during tax season.

How to Land a Four-Day-Workweek Job: Tips and Strategies Women and people of color are more likely to be student loan holders.

She stated that there are free alternatives for tax preparation, and it's not mandatory to pay for it.

Here’s what you need to know about filing for free.

IRS Free File program

The IRS Free File program, a partnership between the agency and the Free File Alliance, offers many Americans the opportunity to file their taxes for free using online software from companies such as TaxAct, FreeTaxUSA, and others.

In 2019, 2.5 million Americans utilized the Free File program for their taxes, according to the IRS. Despite a 100% increase from the prior year, many more individuals could take advantage of the program.

If your adjusted gross income in 2021 was less than or equal to $73,000, you can use one of the Free File software programs to submit federal taxes for free. Additionally, some products will also let you file your state taxes for free. The software typically includes step-by-step instructions and help for filers.

To avoid delays, the IRS recommends Americans file online and receive refunds through direct deposit this year.

You must access the IRS site to use the program, which began on Jan. 14.

The IRS offers free basic tax preparation services through VITA and TCE programs.

Tax experts offer their assistance to low-income filers, people with disabilities, limited English speakers, and those over 60 years old in preparing and filing tax returns.

Pre-pandemic, these options were typically held in-person, but this year they will operate differently. Some sites have been shut down due to the crisis, while others will conduct the program online or in person. To locate a VITA or TCE center, use the IRS locator tool.

What to do if you made more than $73,000

If your gross adjusted income was more than $73,000 in 2021, you may be eligible for a free program through the IRS, but it requires self-preparation of taxes.

The IRS offers online tax forms that individuals can fill out and either submit electronically or print and mail.

Unlike other programs, Free Fillable Forms does not provide any guidance or step-by-step instructions. It only performs basic calculations on the numbers entered into the forms. Additionally, it is only available for federal tax returns, although individuals in certain states may have access to local programs to file their state returns.

If you prefer to prepare your own taxes, the Free Fillable Forms program is a suitable choice.

Other free services

Some private companies provide free tax filing services, including TurboTax, TaxAct, and Credit Karma.

Some companies offer free filing options based on annual income, return simplicity, location, military status, credit eligibility, and other factors.

Before using any online software for filing taxes, verify if you are eligible for free filing and ensure you are using the correct product to avoid being charged.

Credit Karma offers free filing for all customers, including federal and state returns, and provides access to support staff to answer any questions, according to the company.

When to pay for help

Some individuals may opt to pay for assistance in filing their taxes even though they are not eligible for a free program or do not have the time to do it themselves. Numerous online software programs exist that provide help with tax filing for a fee, catering to a variety of tax situations at different price points.

If you are a sole proprietor with income or run a small business, you may want to seek assistance from a software program, accountant, or other tax expert when filing your taxes.

To receive your refund promptly, it is crucial to submit an accurate tax return this year.

Financial freedom can be achieved through Money 101, an 8-week online course that is delivered weekly to your email inbox.

After one year of starting my side hustle, it was generating $10,000 in monthly revenue. Through Grow with Acorns+CNBC, I have learned valuable insights.

Disclosure: NBCUniversal and Comcast Ventures are investors in Acorns.