Is “free” tax filing really free? Here’s what you need to know before you start.
If you've ever tried filing your taxes online, you may have come across a popular tax prep website advertising a "free edition." But just when you think you're about to finish, a notification pops up: You're not eligible for free filing. Please upgrade to continue.
Frustrating, right? You're not alone. Many taxpayers are caught off guard by these paywalls, and they wonder—Is there actually a way to file taxes for free? The short answer is yes. The IRS offers a legitimate Free File program, but you need to know where to look and how to qualify.
Let’s break it down.
When Is “Free” Tax Filing Really Free?
Many tax preparation services offer a free filing option, but it typically applies only to the simplest tax situations. If your tax return includes just:
- A W-2 from an employer
- The standard deduction
- No major credits or deductions outside of the basics
Then you’re in luck—most major tax software platforms will allow you to file at no cost. However, if you:
- Are self-employed or work as an independent contractor (gig workers, freelancers, Uber/Lyft drivers, etc.)
- Have rental income
- Need to itemize deductions
- Have investments or stock sales
You’ll likely be required to pay for an upgrade. That’s where many taxpayers get caught off guard.
The IRS Free File Program: Who Qualifies?
Unlike commercial tax prep software, the IRS Free File program is a government-backed initiative that allows eligible taxpayers to file federal taxes at no charge—without surprise fees.
As of the 2025 tax filing season, the IRS has increased the adjusted gross income (AGI) limit for its Free File program to $84,000. This means that individuals and families with an AGI of $84,000 or less can use the IRS Free File service to prepare and file their federal income tax returns online at no cost. This is an increase from the previous year's limit of $72,000, expanding access to more taxpayers.
Here’s how to access it:
- Go to the official IRS Free File portal: IRS.gov/FreeFile
- Select a participating tax preparation provider—the IRS partners with several reputable companies.
- Follow the instructions to file online.
Each provider sets slightly different eligibility requirements, so check to make sure you’re choosing the best option for your situation.
Important Tip: Some Free File providers may still try to upsell you on premium services. If you feel pressured to pay, double-check that you selected the actual Free File option through the IRS website.
Can You File Completely for Free Without a Tax Software?
If you love crunching numbers and don’t mind a DIY approach, the IRS also provides free fillable forms for anyone—regardless of income. These are the digital versions of paper tax forms that you can complete and submit online at no cost.
However, there’s a catch. First, there's no guidance. You need to know what you’re doing because there are no prompts or explanations to help you. Second, calculations are not done automatically. Since it’s a completely manual approach, if you make an error, you could face delays or even penalties. Lastly, the fillable forms are only available for federal taxes. State taxes aren’t included, so you’ll need to figure those out separately.
For confident DIY filers, this is an option. But for most people, using IRS Free File or a professional tax preparer is the safer bet.
When Should You Consider a Tax Professional?
While free options are great, there are cases where hiring a tax professional more than pays for itself. You might want to consider an expert if:
- You own a small business or work as an independent contractor
- You bought or sold real estate in the past year
- You have complex investments, including cryptocurrency
- You need help reducing your tax liability
- You want the peace of mind that comes with having an expert review your return
Even though you might pay a fee upfront, a good tax professional can find deductions you didn’t know existed, prevent costly mistakes, and save you time.
Final Thoughts: Don’t Fall for the “Free” Trap
If you qualify, the IRS Free File program is the best way to file your federal taxes for free without hidden fees. For those with complex returns, investing in a trusted tax professional may be a smarter move in the long run.
No matter how you choose to file, make sure you understand your options before you hit “submit.” A little research now can save you money—and frustration—later.
Do you plan to file your taxes yourself this year, or will you use a professional? Share your thoughts in the comments!