Don't Mess With Taxes

Getting something for free is the ultimate bargain. That's true for taxes, too, if you're able to use one the four no-cost tax preparation and filing options available to some taxpayers this filing season. (Photo by Ken Hawkins via Flickr)

Tax filing season 2025 officially starts today, Jan. 27.

The Internal Revenue Service is now processing the millions of returns filed earlier this month, both electronically and the relatively few still sent via the U.S. Postal Service.

These early filers tend to have less complicated tax lives. They also are comfortable doing their taxes themselves, usually using tax software. Some returns are sent by paid tax preparers.

And almost all of these returns sent to the IRS as soon as possible are from taxpayers are getting refunds.

Then there are the rest of us. There are as many reasons we are waiting the file — yes, the hubby and I are among the yet-to-finish-our-1040 group — as there are taxpayers. In our case, we’re still waiting on tax statements. Our 1099 etc. issuers seem inordinately slow this year, pushing the sending of these third-party reporting forms until the Jan. 31 deadline.

But there is one good thing about taking your time. It gives you a chance to see if you can complete and e-file your tax return for free.

Here's a quick overview of four no-cost tax preparation and e-filing options available this year.

Free File: First up is Free File, the IRS partnership with Free File Alliance tax software companies that makes a version of their commercial products available at no cost for qualifying taxpayers.

This year, the 23rd that Free File has been around, the no-cost option can be used by individuals, regardless of filing status, whose adjusted gross income is $84,000 or less.

Free File has been open for those filers to use since Jan. 10, with the same eight tax software companies that participated last year returning for the 2025 filing season. They are —

While the Free File program establishes general parameters, each participating provider is allowed to set its own eligibility rules for products based on age, income, and state residency. Each of the eight companies will help with federal taxes.

Some Free File providers focus on filings by military personnel. This filing season, ezTaxReturn.com will provide a product for filers who are more comfortable doing their taxes in Spanish.

And some also offer free state return preparation. If the one you choose doesn’t, check with your state tax office. Many states have their own no-cost online tax filing programs for their residents. Yes, that will mean you’ll have to do it all yourself, no transferring data from the federal online forms, but at least it’s free.

Even if your AGI is more than $84,000, you can use Free File Fillable Forms. These are the most common tax forms in an electronic format, but without any instruction or guidance provided by tax software companies.

Direct File: Next is Direct File, the IRS created and operated version of Free File. Here there is not private software middleman. You use the IRS program, which completed a successful pilot in 2024, to fill out and then electronically file your return directly with the tax agency.

Although there are changes underway at the IRS, and the Republicans who control Congress don’t like the program, incoming Trump administration officials say Direct File will be available this filing season.

In fact, it kicked off today, too, and now is available to qualifying taxpayers in 25 states, more than double the jurisdictions where it was operational last year.

The Direct File states are —

The Treasury Department estimates that more than 30 million taxpayers will be eligible to use Direct File across these 25 states.

Eligible Direct File taxpayers will get step-by-step guidance in English and Spanish. They also can chat live with customer service representatives.

In addition to growing geographically, Direct File also has increased the tax situations that it covers. Most notably, it will accept more tax credit claims.

During the 2024 tax season pilot, the qualifying credits allowed were the Earned Income Tax Credit (EITC), the Child Tax Credit, and the Credit for Other Dependents. For 2025, taxpayers who also claim the Child and Dependent Care Credit, Premium Tax Credit that helps cover Affordable Care Act insurance costs, Credit for the Elderly and Disabled, and Retirement Savings Contribution Credit.

VITA and TCE: If you want more personal tax help, but can’t afford to hire a paid preparer, check into whether there is a Volunteer Income Tax Assistance (VITA) or Tax Counseling for the Elderly (TCE) program near you.

Chances are, you’ll find one. There are thousands of VITA and TCE sites across the United States. They are sponsored by community groups and/or nonprofits, staffed by volunteers who must pass an IRS training program, and generally located at community and neighborhood centers, libraries, schools, shopping malls, and other convenient locations across the country.

You can locate the VITA or TCE site nearest you by using the IRS’ online VITA Locator Tool or calling toll-free (800) 906-9887.

If you’re older and searching for a TCE location, most of these sites are operated by the AARP Foundation’s Tax Aide program. To locate the nearest AARP TCE Tax-Aide nearest you, use the AARP Site Locator Tool, which is updated regularly from the start of tax season through April. Or you can call, again toll-free, (888) 227-7669.

Both VITA and TCE programs help eligible taxpayers prepare and e-file their returns for little or no cost.

VITA volunteers focus on taxpayers who make less than a specific amount. This filing season, that’s generally $67,000 or less this filing season. They also work with taxpayers who Persons with disabilities, and those who are not fluent English speakers.

TCE, as the program’s name indicates, is for taxpayers who are 60 and older. TCE volunteers are trained in tax situations and claims that apply to older individuals.

MilTax: U.S. military service personnel and their families can file their federal and state tax returns for free via the online MilTax service.

MilTax provides tax preparation, electronic filing, and support from tax consultants. As the name indicates, it is designed to meet military life tax needs, for example, offering guidance on deployments, combat and training pay, housing and rentals, and multi-state filings.

The tax no-cost, no-income-limit tax help is available to active, retired, or discharged duty service members of the Army, Marine Corps, Navy, Air Force, and Space Force, as well as to their immediate family members, e.g., spouses, children, and anyone who has legal responsibility for their children.

National Guard and reserve service members, regardless of their activation status, and their immediate families also are eligible. So are Coast Guard members who are activated as part of the Department of the Navy under Title 10 authority, as well as their family members.

You also might find these items of interest:

• January 2025 Tax Tips
• Do you have to file a tax return? Probably
• Questions to ask, and answer, before you tackle your 1040

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