Thursday, February 15, 2024

Tax Tip 2024-08: Taxpayers with complicated tax returns can use IRS Free File

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IRS Tax Tips February 15, 2024

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Issue Number: Tax Tip 2024-08


Taxpayers with complicated tax returns can use IRS Free File

With IRS Free File, even complicated tax returns can be filed for free. IRS Free File helps millions of taxpayers file their federal and state tax returns for free every year.

The IRS Free File adjusted gross income (AGI) limit for tax year 2023 is $79,000 for families and individuals. Each provider sets their own eligibility requirements based on age, state residency and income, and offers are available in English and Spanish. Those with an AGI over the limit can still file their return for free using Free File Fillable Forms.

These are a few things taxpayers can do with IRS Free File.

Include income other than wages reported on a Form W-2
IRS Free File can handle income that taxpayers received other than wages from an employer. This includes income forms related to:

  • Self-employment.
  • Trade or business, including income from part-time businesses.
  • Hobby income.
  • Income from gig economy activities.

Taxpayers can also include estimated taxes payments they made.

Claim popular credits with official forms
IRS Free File providers have the most commonly used forms and schedules, including the forms to claim valuable tax credits such as the Earned Income Tax Credit, the Child and Dependent Care Credit and education tax credits.

Deduct business expenses
IRS Free File can also help taxpayers deduct their business expenses, depending on tax limits and rules.

Get started with IRS Free File

  1. Go to IRS.gov/freefile.
  2. Click on Explore Free Guided Tax Software button.
  3. Select the Find Your Trusted Partner tool or use the Browse All Trusted Partners tool.
  4. Review each offer.
  5. Select the desired product.
  6. Follow the links to the trusted partner's website.

IRS Direct File
Taxpayers in 12 states may be eligible to file for free with the IRS Direct File pilot, a new tax filing service from the IRS.

 

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