How to File Your US Taxes for Free

Posted: 10 Feb 2022
Author: Veronica White

If you find the US federal tax filing system confusing, you’re not alone. It’s designed to be confusing in some ways. In 2019, Gimlet media recoded a whole podcast episode about why the US tax system is the way it is, titled: ReplyAll episode #144: a dark pattern. It’s pretty entertaining yet infuriating to listen to, so if you want someone to complain with you about your frustrations, feel free to give it a listen.

Things that are always true when filing your yearly taxes:

1. You can always fill out and file your Federal Income tax 1040 form yourself for free. See steps to download the form and file it on the IRS website.
2. There is always a free online guided tax preparation option for those with an Annual Gross Income (i.e., the amount you made this year before taxes) less than the limit set by the Federal government. Online guided tax preparation means you can use a third-party company to help you fill out and file your taxes, (e.g., OLT, freeTaxUSA, TurboTax). As long as you meet the Federal Income limit, you can use certain third-party software for free, no matter how complicated your taxes are. Make sure to keep the final completed 1040 form handy to help you do option 1 in the future when/if you no longer qualify.

Things that change each year:

• The income limits for free guided filing. For this year’s 2021 filing season, if your Annual Gross Income was $73,000 or less (which is most single graduate students, post-docs, and young professionals) you are legally allowed to file your taxes for free using a guided online tax preparation assistance from a third-party provider. See the IRS file your taxes for free page to determine if you qualify for this year’s set Federal Annual Gross Income Limit.
• Which companies are offering free guided filing each year. Each third-party provider also has their own income or restrictions based on age or military status, but there will always be at least one provider you can use if you meet the set Federal income limit. To see this year’s providers and their qualification criteria, go to Browse the IRS free Online providers on the IRS website (note this site is not great on mobile devices).
• Cost of filing your state income tax forms. As of right now, nine states have no state income taxes, so they are always free. Others have various laws protecting free filing and allowing for free guided state tax filing based on income, similar to options 1 and 2 for filing federal income taxes. Therefore, you can typically file your state taxes through these guided systems for free. If not, it’s typically for a small fee, e.g., $10. Instead, you may want to do option 1 of filing out forms yourself and sending them to your state’s tax institution for free since State taxes are simpler than federal taxes.

I hope this list helped demystify the tax filling system and helped you figure out how to file your taxes for free, in hopefully the least painful way. Good luck filling!