If you use a tax professional to file your return, the preparer is required to submit your return electronically unless they meet an exception to e-filing.
Due to the popularity of electronic filing, there are many different options to e-file your return. Most people purchase tax software to e-file their returns. However, there are several options to e-file for free if you meet their income requirements. Here is the options if you prepare your own return:
Option 1: Use IRS Free File for free
- If your Adjusted Gross Income (income after above the line deductions and credits, often found on previous similar year tax return) is below $79,000, you can use a Guided Tax Software through IRS Free File to connect with trusted partners to assist with tax calculations and simple return questions. This program also assists with state tax returns.
- If your Adjusted Gross Income is above the $79,000 limit, you can use IRS Free File to access fillable, electronic forms without guidance and calculations to complete your federal tax return. This does not include state tax returns.
- The IRS is developing their own software to use to file a return. In 2024, the IRS piloted its Direct File product in several states and plan to expand it in the future. Keep in mind, only the simplest of returns can be done with the IRS Direct File program.
Option 2: Use do-it-yourself Tax Prep Software for free or purchase
- There are many online tax software options that provide reliable, IRS approved e-file services that are easy, guided, and reviewed to ensure accuracy. Many provide tax professionals to help with any questions and review your returns.
- The pricing for these returns generally relies on the complexity of the return. Some providers offer simple returns for free.
Option 3: Hire a Tax Professional for a fee
- This option allows for an informed professional to complete your taxes for you, which can be ideal for complex or length tax returns.
- Tax professionals are typically more costly due to professional expertise and possible complexity of returns. However, many professional tax preparers can save you money by using their knowledge of the tax laws.
Each option provides different advantages for each taxpayer’s need. Typically, taxpayers consider cost and accuracy when filing their federal tax return.
Depending on your personal expertise, complexity of return, and income status, you can decide between the above options to provide the best method of filing your federal tax return.
The IRS does offer free tax preparation also through its:
- Volunteer Income Tax Assistance (VITA) offers free tax help to:
- Taxpayers with an income of $64,000 or less
- Taxpayers with disabilities
- Taxpayers with limited- English speaking abilities
- Tax Counseling for the Elderly (TCE) provides tax assistance to:
- Taxpayers over 60 years old
