Qualifying for IRS Free File
To qualify for IRS Free File in 2025, your adjusted gross income (AGI) must have been $84,000 or less in 2024. Calculate your AGI by subtracting certain tax breaks from your total income, with the result appearing 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.
Some partners also offer free state tax returns. You can explore all eight partners here. Additionally, the program provides Free Fillable Forms, which offer the electronic version of a paper-filed return for taxpayers at all income levels.
IRS Free File and Eligibility
Despite roughly 70% of taxpayers qualifying for IRS Free File, only a small portion of eligible filers use the software, according to Tim Hugo, executive director of the Free File Alliance. Hugo emphasizes that Free File is suitable for more than just simple returns. The program includes eight software partners for 2024 filings, each required to accept commonly used tax forms and schedules.
Forms such as Schedule A for itemized deductions, Schedules B and D for investment earnings, and Schedule C for self-employed filers are among those accepted by the software partners.
Effective Use of Free File
The IRS opened the Free File program on Jan. 10, allowing taxpayers to e-file returns prepared through Free File partners starting on Jan. 27. During the 2024 season, Free File processed 2.9 million returns through May 11, indicating a 7.3% increase compared to the same period in 2023.
Despite launching its own free tax filing service called Direct File, the IRS extended the Free File program through 2029. Hugo described Free File as “a hidden gem in the forest” and emphasized the need for more people to be aware of its benefits.