An assortment of items rest on a black desk, including official tax withholding forms, a calculator, envelopes, a pen, and cup of coffee.
Are you eligible to use free income tax prep tools this tax season?

Americans to Save Millions on Tax Prep Fees

Great news for taxpayers looking to save money – the IRS has announced plans to make its Free File program a permanent option. This season, 140,803 taxpayers in 12 states used the Direct File system, up 7.3% from last year. Following this successful pilot, the IRS is inviting all 50 states to join the program.

“We are also exploring ways to make additional taxpayers eligible to use the system next year and beyond…our goal is to gradually expand Direct File to support most common tax situations that impact working families,” said IRS Commissioner Danny Werfel.

Not only does Free File make tax filing easier, but it allows millions of Americans to save money on tax prep fees. The IRS estimates Free File users saved over $5.6 million in tax prep costs this season alone.

Who Can Use Free File

The Free File program allows you to use free, online tax prep software from companies like TaxSlayer, TaxAct, and others if you meet the income requirements:

  • Households with an adjusted gross income (AGI) of $79,000 or less in 2023 can use the guided tax prep software products.
  • Those over the $79,000 AGI limit can use the Free File Fillable Forms, basic electronic forms you fill out yourself.

Who Cannot Use Free File

However, one group not eligible for Free File is taxpayers with unfiled returns from previous years. If you have missing returns or outstanding tax debt, you must work with a tax professional to complete all unfiled returns and reach a resolution agreement with the IRS.

Don’t wait for the IRS to add additional penalties and interest on top of your tax debt. It’s only a matter of time before they pursue aggressive enforcement actions.

Start your journey toward tax compliance by discovering if you qualify for tax forgiveness programs under expanded 2024 regulations, or complete our quick survey to learn which resolution options are available to you today.