Tax season is stressful for many Americans, and for extension filers, anxiety doesn't go away until well into the summer. The Internal Revenue Service (IRS) put out a timely announcement on July 10, 2025, to the taxpayers who had requested an extension.
Don't wait until Oct.15, file now with IRS Free File. In this blog, we will describe what this message is, why it's important, and how you can benefit from the IRS Free File program.
Understanding the IRS Free File Program
IRS Free File is an IRS alliance with various private tax software providers. It is designed to make it easier for millions of Americans to file taxes at an affordable and convenient level. Taxpayers who are eligible are allowed to prepare and electronically file their federal income tax return free with their preferred trusted software providers under the program.
Key Features:
- Free filing of your taxes with help if you have an adjusted gross income (AGI) of $84,000 or less.
- Free File Fillable Forms for any taxpayer, no matter income, for those who are comfortable doing their own return.
- 24/7 access to the Free File portal, so you can do it on your own time.
- Secure e-filing directly to the IRS.
The IRS Free File is an ancient method, but refreshed annually to use the latest tax codes and income thresholds. For 2025, the AGI threshold is $84,000, encompassing most U.S. taxpayers.
Who is Eligible for an IRS Free File?
- IRS Free File eligibility is largely determined by your adjusted gross income (AGI).
- If you earn $84,000 or less in AGI, you're eligible for free tax preparation by IRS Free File providers.
- If you earn more than $84,000, you're able to prepare and e-file with Free File Fillable Forms, but you won't be able to use computer-aided guided software.
Other Things to Know:
- Age: There may be other age limits or special offers for younger taxpayers for some Free File providers.
- State Returns: Not all Free File providers will fill out a state tax return for free, so review what each provider does if you must file a state return.
Benefits of Early Filing of Taxes
The IRS encourages extension filers to file early, rather than waiting until October 15. Here's why:
1. Avoid the Fall Rush
Filing sooner keeps you ahead of the group at the eleventh hour. The sooner it is ahead of the due date, the greater the chance you have to find delays, mistakes, or technical issues.
2. More Time to Fix Mistakes
If there is something wrong with your return, be it missing information, mistakes, or IRS inquiries, you will have time to make the corrections prior to the due date.
3. Quicker Refunds
The earlier you file, the earlier you'll get any refund that you're owed. Early filers get their refunds earlier because the IRS has less to process.
4. Payment Time
In case you have a tax debt, early filing allows you extra time to prepare and pay, avoiding interest and penalties from being assessed.
How to Use IRS Free File
IRS Free File is easy to get started with:
- Visit the IRS Free File Portal: Visit the IRS website and click on the Free File page.
- Check Your Eligibility: Enter your AGI and other details to find out who your Free File partners are eligible for.
- Choose a Provider: Browse through the list of software partners being offered. They are all unique, so choose the one that is most suitable for you.
- Start an Account: Open an account with your desired provider.
- Prepare for Your Return: Go step-by-step to input your tax data.
- Check and E-File: Double-check that your return is accurate, then e-file it.
Pro Tip: Have copies of all documents and your e-file acknowledgement on hand.
What Are Free File Fillable Forms?
For people who are willing to do their own returns, the IRS provides Free File Fillable Forms. They are digital copies of IRS forms on paper that are accessible to anyone with no income restrictions.
Who Should Use Fillable Forms?
- Taxpayers who have straightforward returns and do not require step-by-step instructions.
- Individuals who are experienced in taxes and can fill out IRS forms independently.
Advantages:
- No income restrictions.
- Easy direct sending to the IRS.
Disadvantages:
- No step-by-step instructions.
- No state tax assistance.
- Best for seasoned filers.
Errors to Be Avoided with Free File
Even with less complicated software, there will be errors. These are some errors to avoid:
- Social Security Number errors: Double-check your own SSN and dependents' SSNs.
- Income Omissions: Make sure you report all income sources, including side work, investments, and gig work.
- Failure to Claim Deductions/Credits: Do not lose all of the tax savings you are eligible for, i.e., Child Tax Credit or Earned Income Tax Credit.
- Bank Account Mistakes: Verify your bank routing and account number when you request direct deposit
- Not Signing: E-filed returns must have an electronic signature, usually your previous year's AGI.
Our experts at The Fino Partners make sure that you do not make these mistakes while filing.
IRS Free File vs. Paid Tax Software
There are computer software companies which charge as well as do free services. Below is the comparison of IRS Free File:
|
Feature |
IRS Free File |
Paid Software |
|
Cost |
Free (for eligible filers) |
Varies, often $20-$100+ |
|
Guided Preparation |
Yes (for AGI ≤ $84,000) |
Yes |
|
State Returns |
Sometimes free, varies by provider |
Usually included for a fee |
|
Customer Support |
Limited |
Often includes live support |
|
Advertising |
None |
May upsell paid features |
|
Security |
High (IRS partners) |
High (reputable companies) |
Expert Tip by The Fino Partners: Always start at the IRS Free File portal to ensure you’re using the official, no-cost version.
Security and Privacy: Is IRS Free File Secure?
Safety is the first and foremost in electronic tax filing. The IRS Free File program has secure partners to whom it clings tight security standards, including:
- Encryption: Encryption of data while in transit.
- Authentication: Secure login practices guard your information.
- Privacy Policies: IRS partners are bound by federal standards of privacy.
Best Practices:
- Use strong, unique passwords for your accounts.
- Never share your login credentials.
- Always use the official IRS website to access Free File.
What If You Don't Meet the Deadline?
If you don't file your return by October 15, you'll be assessed penalties and interest on any tax due. Here's what will occur:
- Failure-to-File Penalty: Generally 5% of the unpaid tax for each month your return is late, but limited to 25%.
- Failure-to-Pay Penalty: Generally 0.5% of the unpaid tax for each month, but not over 25%.
- Interest: Pending on the unpaid tax from the later of the payment date or date paid in full.
If You Can't Pay in Full:
- File your return to prevent a higher failure-to-file penalty from piling up.
- Consider entering into an IRS installment agreement.
Practical Tips for Extension Filers
Here are some expert tips for extension filers:
- Get Documents Early: Don't wait until the last minute to gather W-2s, 1099s, and other tax papers.
- Look over Last Year's Return: Use it as a guide for deductions, credits, and personal data.
- Check for Updates: Tax laws change frequently. So make sure you’re aware of any new rules for 2024 returns.
- Use IRS Resources: The IRS website is full of tools, FAQs, and phone numbers to help.
Helpful Links
- How Accountant Services Help U.S. Businesses Navigate IRS Regulations
- IRS 2025 - New Rules for Multimillionaires’ Tax Audits
- IRS Targets Crypto: New 2025 Rules for DeFi and NFTs
The IRS continues to develop and enhance the IRS Free File program by adding new software partners every year and refining AGI eligibility thresholds to account for inflation. Continued investments in security and accessibility make the experience safer and easier to use for taxpayers. In the future, the IRS is aimed at more integration with state tax agencies, further mobile availability, and more support and education for taxpayers. For expert advice and trouble-free tax filing services, reach out to The Fino Partners today.
