WASHINGTON, D.C. — The Internal Revenue Service (IRS) has announced an extension of its Free File program through October 2029. This extension secures the availability of free tax preparation software for millions of taxpayers.
The Free File program is a public-private partnership between the IRS and several tax software companies. These companies provide online tax preparation and filing software at no cost to eligible taxpayers. The program is exclusively accessible through IRS.gov.
This year, Free File saw a significant increase in usage, with about 200,000 more tax returns filed compared to the previous year. As of May 11, 2.9 million tax returns were filed through the program, representing a 7.3% increase from last year’s 2.7 million.
“Free File remains an important part of the IRS portfolio to help taxpayers file their taxes for free,” said IRS Commissioner Danny Werfel. “We were pleased to see growth in the program this year, and we look forward to continuing this important collaboration with the tax software industry. Free File was part of a successful filing season at the IRS that saw increased interest in a range of free programs to help taxpayers.”
Now in its 22nd filing season, Free File continues to serve taxpayers nationwide. Eligible individuals can access the free tax software products provided by IRS partners by visiting IRS.gov. This year, eight private-sector partners offered guided tax software products to taxpayers with an Adjusted Gross Income (AGI) of $79,000 or less in 2023. Taxpayers with an AGI over $79,000 can use the IRS’s Free File Fillable Forms.
The program remains available on IRS.gov for taxpayers through the October 15 extension deadline for 2023 tax returns.
Ken Corbin, chief of IRS Taxpayer Services, emphasized the importance of the Free File program. “Free File has been an important partner with the IRS for more than two decades and helped tens of millions of taxpayers. This extension will continue that relationship into the future,” Corbin said. “This multi-year agreement will also provide certainty for private-sector partners to help with their future Free File planning.”
For 2024, the participating partners in IRS Free File include:
- 1040Now
- Drake (1040.com)
- ezTaxReturn.com
- FileYourTaxes.com
- On-Line Taxes
- TaxAct
- TaxHawk (FreeTaxUSA)
- TaxSlayer
The IRS also introduced a new pilot program this tax season called Direct File. This service allowed taxpayers to file directly with the IRS electronically for the first time. Several hundred thousand taxpayers across 12 states signed up for Direct File accounts, and 140,803 taxpayers used this new service to file their federal tax returns.
Why the Free File Program Matters
The extension of the Free File program is crucial for multiple reasons. First, it provides an essential service for low-to-moderate-income taxpayers who may not have the resources to pay for tax preparation services. By offering free, easy-to-use software, the IRS helps ensure that more Americans can accurately and efficiently file their taxes without financial strain.
Second, the program simplifies the tax filing process. Many taxpayers find the process of completing tax forms daunting. Free File offers guided assistance, which can reduce errors and ensure that filers receive all the deductions and credits they are entitled to.
Third, this initiative supports broader goals of tax compliance and efficiency. When taxpayers have access to reliable tools, they are more likely to file accurate returns on time, which benefits both the individual and the government.
As the program extends through 2029, the IRS and its partners will continue to adapt and improve the services offered. This ongoing commitment ensures that taxpayer needs are met while providing stability and planning certainty for the private-sector companies involved.
In summary, the extension of the Free File program represents a significant step in ensuring continued access to free tax preparation resources. This initiative not only supports individual taxpayers but also contributes to the overall efficiency and effectiveness of the tax system in the United States.
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