IRS to Make Free File a Permanent Feature – Who Can Benefit?

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Published on
12 January 2025

Author

Kevin J

Millions of Americans Could Save Big on Tax Prep Fees

Big news for taxpayers aiming to cut costs – the IRS is solidifying its Free File program as a permanent offering. This year, 140,803 taxpayers across 12 states utilized the Direct File system, marking a 7.3% increase from the previous year. Encouraged by the pilot program’s success, the IRS is now inviting all 50 states to participate.

“We are working to make more taxpayers eligible to use this system next year and beyond,” said IRS Commissioner Danny Werfel. “Our ultimate goal is to expand Direct File to cover the most common tax situations impacting working families.”

Not only does Free File simplify tax filing, but it also allows millions of Americans to avoid hefty tax preparation fees. This season alone, users of the Free File program saved over $5.6 million in tax prep costs, according to IRS estimates.

Who Is Eligible for Free File?

Households with an AGI of $79,000 or less in 2023 can use the guided tax prep software.
Individuals with an AGI above $79,000 can still use Free File Fillable Forms, a straightforward electronic option for those comfortable filing independently.

Take this Survey to Check if you qualify

Who Is Not Eligible for a Free File?

While Free File is a fantastic resource, it’s not available to everyone. Taxpayers with unfiled returns from previous years are ineligible. If you have missing returns or outstanding tax debt, you’ll need to work with a tax professional to address these issues and establish a resolution agreement with the IRS.

Ignoring unresolved tax debt can lead to additional penalties and interest – and the IRS is known to pursue enforcement actions aggressively.

Take Action Today

If you’re behind on taxes, don’t wait for penalties to pile up. Find out if you qualify for tax forgiveness programs under the expanded 2025 regulations. Complete our quick survey to explore your options and take the first step toward resolving your tax issues today.

Take the Survey Now

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