It's January and that means tax season is just around the corner. This year the IRS is giving eligible filers an affordable head start. Starting today, IRS Free File will begin accepting individual tax returns, allowing taxpayers a no-cost way to file their taxes and claim their full amount of tax benefits.
“As tax season approaches, preparation is key for a stress-free filing experience. One of the best ways to ensure you are prepared is to start early,” says Mark Jaeger, vice president of tax operations at TaxAct, one of eight partners of IRS Free File.
Taxpayers with an adjusted gross income of less than $84,000 or less are eligible to use the free service. That covers about 70% of American taxpayers, according to the Free File Alliance. If your AGI is above this threshold, no time is better than now to start thinking about filing your 2024 taxes.
IRS Free File is a public-private partnership
IRS Free File is a public-private partnership between the IRS and Free File Inc. and the IRS. It's a great choice if you have a straightforward tax situation and have filed your own taxes before, and the service also answers simple questions about your taxes.
In addition to TaxAct, other partners include TaxSlayer, 1040Now, and ezTaxReturn.com, which offers services in Spanish. Each partner has differing requirements for its free filing services, including age, income, and military status.
File your tax return early with any of these partners, and it will be submitted once the IRS starts processing returns later this month.
How to prepare for tax season
Filing for taxes can feel like a burden for most Americans, but it's best to not wait until April to start working on them. Here are some tips to prepare for tax season:
Gather and review tax documents
Tax documents can be overwhelming, and if you’re like many Americans, you may shove that W2 or 1099 in a drawer once you receive it to be forgotten about until you’re ready to file. However, it’s important to keep track of documents you receive and expect to receive so you know when you have everything needed.
“Gather documents like W-2s and 1099s that report income, but don’t forget to gather your receipts for deductible expenses like childcare expenses which can mean a credit up to $1,050 for one child and up to $2,100 for two or more kids, expenses for your home like property taxes and home mortgage interest, and expenses for college,” explains Lisa Greene-Lewis, CPA at TurboTax.
Collecting and organizing your tax documents before you plan to sit down and work on filing can save you from headache later on, adds Ben Watson, CPA and virtual CFO of DollarSprout.
“Often, the most stressful and complicated part of tax preparation is compiling all the relevant information—being organized throughout the year can make a big difference in how quickly you finalize the return, how big of a refund you get, and can also save you a bundle on tax prep by saving the preparer valuable time by not digging through a mess,” he tells Fortune.
Make gradual process
Rome wasn’t built in a day, and neither do you need to file your taxes in a day. After collecting documents, a natural next step is to pick a tax software—if you are planning to go at it alone. If your tax situation is complex, take slow steps to avoid feeling overwhelmed. One positive of internet-based filing is that your progress is always saved, so you can take your time between now and April.
“People should start preparing to file their taxes as soon as possible. Especially with the average refund being over $3,000 last tax season. For many, that is the biggest check they get all year. The sooner you file the sooner you will get your refund,” says Greene-Lewis.
“Even inputting your basic information gets you one step closer to completing your return, especially when life gets in the way of getting it done,” adds Jaeger.
Time your filing based on your own situation
Experts generally advise against waiting until the last minute to file taxes. Greene-Lewis says procrastinators tend to leave out receipts for expenses that could lead to tax deductions.
But, for those that owe money to the IRS, Stan Veliotis, associate professor at Fordham University’s Gabelli School of Business says he would not file a tax return early. That’s because retroactive tax law changes are not uncommon. In 2021, changes to unemployment compensation tax resulted in income from 2020 being taxed differently for some Americans.
“With the Republicans in control of tax legislation to a large extent starting later this month, what if they enact something that might change 2024 taxes?” he says. “But if you’re expecting a large refund, then it is worth filing as early as possible, as they do not pay you interest on your refund if you file before April 15, assuming the IRS does not delay too long in paying you the refund.”
How to file your 2024 taxes for free
IRS Free File is the easiest way to file your taxes. It is open to individuals with an adjusted gross income of $84,000 or less. Only a slim number of individuals take advantage of the resource.
“Over the years, Free File has helped millions of taxpayers, providing a fast and simple way to file their returns,” said IRS Commissioner Danny Wefel in a press release. “This program continues to be a valuable resource for eligible individuals looking to file their taxes for free through this unique program.”
To gain proper access to the free filing, it is important to first go to the IRS website and navigate to one of the eight partner websites from there. Otherwise, you may still be prompted to pay. The participating partners include:
- 1040Now
- Drake (1040.com)
- ezTaxReturn.com (available in Spanish)
- FileYourTaxes.com
- On-Line Taxes
- TaxAct
- TaxHawk (FreeTaxUSA)
- TaxSlayer
Because the official tax season does not start until January 27, Free Fill allows taxpayers to completely prepare returns now and hold them until they can be electronically filed.
Other popular software, like TurboTax and H&R Block, are not part of the Free File system, but they do have other free federal tax filing opportunities. However, they may charge for advanced federal tax situations, state filings, or tax expert assistance.
The costs are worth the investment, says Veliotis.
“For under $100, you have a federal tax return and a state tax return–extra amounts are charged for extra states,” he tells Fortune. “The questions guide you and almost replicate the experience of having an interview with a professional who is preparing your tax return.”
For those living and working in one of 25 states, taxpayers can also file their for free with the IRS, using its Direct File option. The participating states include:
View this interactive chart on Fortune.com
- Alaska
- Arizona
- California
- Connecticut
- Florida
- Idaho
- Illinois
- Kansas
- Maine
- Maryland
- Massachusetts
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- Oregon
- Pennsylvania
- South Dakota
- Tennessee
- Texas
- Washington state
- Wisconsin
- Wyoming
Other free IRS tax help programs:
- Volunteering Income Tax Assistance (VITA): Help is eligible for individuals making $67,000 or less, have a disability, and/or speak limited English
- Tax Counseling for the Elderly (TCE): Open to those 60 years of age or older
VITA or TCE locations can be found on the IRS website.
Important 2025 tax dates to know
- Friday, January 10, 2025: IRS Free File opens
- Monday, January 27, 2025: IRS starts processing taxes (official start of tax season)
- Tuesday, April 15, 2025: Filing deadline for 2024 taxes (this is also the last day to apply for a free tax extension)
- Wednesday, October 15, 2025: Filing deadline for 2024 extension filers
