Underutilization of Free File
Despite 70% of taxpayers qualifying for the program, less than 1.9% utilized it in fiscal year 2023, potentially leaving 101 million filers missing out on free federal tax return filing.
Free File, a partnership between the and private tax software companies, aims to allow taxpayers with an adjusted gross income of $84,000 or less to file for free, yet its usage remains consistently below 2% over the past decade.
Expanding Free Filing Options and Cautions
The IRS Direct File program, available in 25 states, offers another avenue for free federal tax filing, directly with the government, but is limited to simpler returns and does not support state filing.
Taxpayers are advised to be cautious of non-official "free" tax software versions and to use IRS.gov to access Free File and Direct File to ensure they are utilizing legitimate free filing options.