Millions of taxpayers qualify to file a federal tax return for free, but only those who qualify to use certain providers will be able to file an accompanying state tax return for free.
To qualify for a free federal tax return under the IRS Free File program, taxpayers must have an adjusted gross income of $54,000 or less and also meet additional criteria for using a provider. Because each provider has its own rules beyond the generic $54,000 income limitation, knowing which one to use can be confusing. All providers have at least one criterion in addition to the $54,000 or less in income. It may be state of residence, minimum age or income requirement, or perhaps a maximum age limit. To help out, the IRS will match taxpayers with potential providers through a quick questionnaire on its website. At this point, how does a taxpayer choose among the potential providers? The deciding factor may be the cost of an accompanying state tax return.
The only way to know that is to visit the provider’s website. Some websites display the pricing on the main landing page; others require a little bit of digging into FAQs or other links.
Shown below are the free file providers listed on the IRS website and the fees they currently charge for state income tax returns if the service is added to the free federal return. (Note: The price could be different if the taxpayer does not actually qualify for a free federal return or if they are using a provider only for a state return):
Not all states will be supported by a particular provider; this means that even though all providers are capable of e-filing federal tax returns, they might not be set up to e-file certain state returns. Finding this information requires a little digging on each provider’s website.
To access a Free File provider website, it is recommended that taxpayers first visit the IRS Free File homepage, then click on the appropriate provider’s link. This will ensure access to a legitimate website. (This is why no hyperlinks were provided above). Additionally, some providers will only honor the free file if linked to their website from the IRS webpage.
The article "Free Federal Tax Return Filing" offers information on how to get started with IRS Free File.
Low to middle income taxpayers may qualify for free tax assistance within their local communities through the IRS-sponsored Volunteer Income Tax Assistance (VITA) program.
Source: IRS Website