It’s official, the IRS begins accepting 2024 tax filings today. Over 200 million returns will soon start trickling in—and this year, there are more tools than ever available to help you file your taxes online.
“This has been a historic period of improvement for the IRS, and people will see additional tools and features to help them with filing their taxes this tax season,” said IRS Commissioner Danny Werfel.
“These taxpayer-focused improvements we’ve done so far are important, but they are just the beginning of what the IRS needs to do.”
Werfel said that more than 90% of individual tax returns were filed online for tax year 2023, filing taxes online has become the norm for most Americans. This option is available to filers of all sorts, from individuals, to households, professional tax preparers, and businesses.
Top 4 options for online tax filing
Filing taxes online not only streamlines the process but also expedites refunds—the IRS reports that more than 90% of tax refunds are issued within 21 days of filing. There are additional benefits:
- Accuracy: Tax software helps reduce errors.
- Convenience: File from anywhere, anytime.
- Immediate confirmation: Receive instant notification of successful filing.
- Security: E-filing is more secure than mailing paper forms.
If you’re looking to avoid the snares plaguing the USPS right now, there are several e-filing options available at your disposal.
1. Tax software programs
Commercial tax software programs offer user-friendly interfaces with simple question-and-answer formats. Many providers, including H&R Block, TurboTax, and TaxSlayer, offer free versions for simple tax situations. More complex returns may require paid versions with additional features like expert help and audit assistance.
Tax software is preferred by many households because it allows them to file taxes on their own, without the expense of a professional. The platforms are updated yearly to ensure they always follow the most up-to-date policies, and lately more and more of them offer the assistance of artificial intelligence in addition to live help from certified tax professionals.
Most also include steps to review your documents to ensure you’re getting the best possible refund.
“H&R Block offers a free second look service to review and double check up to 3 years of prior tax returns at no additional charge,” says Andy Phillips, Vice President of The Tax Institute at H&R Block. “Some of the most common missed deductions include education credits, child tax credit, and earned income credit, which means those who need the dollars the most are leaving behind their hard-earned money.”
2. IRS Fillable Forms
For those comfortable with tax preparation on their own, the IRS offers Fillable Forms on their website. It's essentially the online equivalent of filing by hand, requiring you to input information from your tax documents directly into the forms.
While this method offers complete control, it doesn't support automatic transfer of information to state tax returns. This may make it cumbersome for users who don’t love data entry, but it does keep your information from passing through a third-party service—which may be valuable for users who like to play things close to the vest.
3. IRS Free File
The IRS partners with online tax preparation companies to provide guided tax filing through Free File. This service is available to taxpayers with an adjusted gross income (AGI) of $84,000 or less for the 2024 tax year. Some partners may have additional requirements or charge for state returns. To use Free File, you must start the process through the IRS website.
4. IRS Direct File
Launched for the 2024 tax season, Direct File is the IRS's own version of online tax-preparation software. It offers free filing and live support via chat or phone. However, it's only available in 25 states and handles a limited number of deductions and credits.
Make sure you file before the deadline
Filing your taxes late can result in hefty penalties, which increase monthly if left unsettled. You can expect to pay at least $485 if you fail to file by the due date, plus additional fees if you owe taxes rather than qualifying for a refund. The longer you delay, the more you’ll owe, because the penalties start wracking up interest as well.
To avoid these penalties, make sure you submit your return by the appropriate date:
- April 15, 2025: Deadline for filing 2024 tax returns for most tax filers
- May 1, 2025: Extended deadline for filers impacted by Hurricanes Helene or Milton
- October 15, 2025: Extended deadline if you file Form 4868 for an automatic six-month extension, or for residents of California impacted by the recent wildfires
How to file your 2024 tax returns
Consider your tax situation complexity, comfort level with tax preparation, and budget when selecting a filing method.
For simple returns, free options like IRS Free File or Direct File may suffice. More complex situations might benefit from paid tax software or professional assistance, but most tax filers can expect to follow the steps below.
Select the appropriate filing status for your situation.
The IRS provides five tax filing statuses for individuals and households. Make sure to choose the one that best describes your situation to avoid errors along the way.
- Single: Unmarried individuals or persons who were legally separated or divorced by December 31, 2024 may qualify to file as single for this tax year.
- Married filing jointly: If you were married as of the last day of the year, you may want to file jointly with your spouse. There are several tax breaks available with this option, but if one spouse is carrying certain types of debt the IRS may require a potential refund to be applied to those debts rather than issued to you.
- Married filing separately: In the case where one spouse is carrying significant debt that the other does not, some couples may choose to file separately. This disqualifies them from some of the tax credits that joint filers can receive, but provides clear delineation for each person’s finances.
- Head of household: Unmarried filers with dependents may choose this option in order to receive tax breaks they wouldn’t get if they filed as single.
- Qualified widow(er): In the unfortunate case that someone has lost their spouse, the surviving partner may use this status for up to two years as long as they remain unmarried during that time. This allows them to stay in the same tax bracket that they would have used when filing jointly for a period of time while adjusting to this significant life change.
Gather your documentation
As you start filling in your tax return, you’ll be asked for figures from all sorts of documentation. Generally speaking there are three main sections to your return: income, deductions, and credits.
Common income forms you should expect to gather up include:
- W-2 forms from employers
- 1099 forms for self-employment or miscellaneous income
- 1099-K for online sales, if you sold more than $5,000 online
- 1099-INT for interest earned on bank accounts
- 1098-E for student loan interest paid
- 1098 for mortgage interest statements
- 5498 for IRA contributions
- 8889 for health savings account contributions
For deductions, which lower your taxable income, some taxpayers may choose to provide a long list of charitable contributions, mileage, medical expenses, and other qualifying transactions that they’ve made throughout the year. However, this is only worthwhile for those whose itemized deductions would add up to a larger sum than the standard deduction, which is the following amount in 2024:
- Married filing jointly or qualified surviving spouses: $29,200, up from $27,700 in 2023
- Head of household: $21,900, up from $20,800 in 2023
- Single or married filing separately: $14,600, up from $13,850 in 2023
If your itemized deductions won’t outweigh the standard for your tax filing status, save yourself the time and effort and just take the standard deduction.
Finally, prepare any necessary paperwork for credits you qualify for. These may include, but are not limited to, the Child and Dependent Care Tax Credit, Earned Income Tax Credit, or American Opportunity Tax Credit. Each one has different filing requirements, which a tax professional or software will assist you with if you aren’t sure which details to gather.
Submit your tax return
Using one of the methods above, fill in your tax return and submit it to the IRS before the appropriate deadline. After e-filing, you'll receive a notification confirming receipt or alerting you to errors. If you're due a refund, you can check its status 24 hours after e-filing. Direct deposit to your bank account is the fastest way to receive your refund.
If necessary, submit tax payments
If you owe taxes, payment methods depend on how you file:
- Filing directly through the IRS: Pay online via bank account, debit card, credit card, or digital wallet (processing fees may apply)
- Using online tax services: Follow their instructions for payment
- Mailing payment: Send a check, money order, or cashier's check payable to the U.S. Treasury with all necessary information
What about state tax returns?
While federal e-filing options are consistent nationwide, state tax return processes vary. Some IRS partners offer free state returns with Free File, while others may charge. Direct File supports automatic data transfer for some states, but not all.
Tax software and professionals, however, will guide you through the process of filing in your specific state as well as offer assistance if you need to file taxes for multiple states.
The takeaway
Online tax filing has revolutionized the way Americans handle their taxes, offering speed, convenience, and often cost savings. By understanding the available options and preparing adequately, you can choose the method that best suits your needs and ensure a smooth tax filing experience.
Remember, regardless of the method you choose, accuracy and timeliness are crucial. If you're unsure about any aspect of your taxes, consider consulting a tax professional for guidance. With the right approach, filing your taxes online can be a straightforward and efficient process that gets a refund in your hands as quickly as possible.
