How to file your taxes for free in 2025

Americans spend an average of $270 filing their taxes each year, according to the Treasury Department.

There are numerous ways to file your taxes for free, however, especially if you meet certain income requirements or have a simple tax return.

Some programs are sponsored by the IRS, while others are provided by top tax software companies.

You might not get everything you would from a paid platform or tax professional. But if you qualify and can find what you need, why not take advantage?

In 2023, the IRS launched Direct File, a free online program for filing a federal tax return directly with the agency. For tax year 2024, Direct File is open to qualified taxpayers in 24 states: Alaska, Arizona, California, Connecticut, Florida, Idaho, Kansas, Maine, Maryland, Massachusetts, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Oregon, Pennsylvania, South Dakota, Tennessee, Texas, Washington, Wisconsin and Wyoming.

To qualify for DirectFile, you must be a W-2 employee, receive Social Security or unemployment insurance or have an investment income of less than $1,500. You must also have a Social Security number or Individual Taxpayer Identification Number and a valid state ID or passport.

Direct File can be used to claim the Earned Income Tax Credit and Child Tax Credit, but not many other credits. You also can't itemize deductions or report additional income, like capital gains or money from gig work or rental properties.

The IRS estimates 30 million eligible taxpayers should be eligible to use DirectFile when they file their 2024 returns in 2025.

If your state doesn't have Direct File yet, IRS Free File is a no-cost online service for filers with an adjusted gross income of $79,000 or less in 2023.

It's a partnership between the IRS and eight leading tax prep sites, including TaxSlayer and FreeTaxUSA. You can choose which to work with based on your income, age, location and filing needs. (Some partners also offer free state filing.)

Its an opportunity many people overlook: About 70% of Americans qualified for IRS Free File in 2024, according to the Taxpayer Advocate, but less than 5% used it.

Even if you meet the income requirements, Free File might not have the forms you need. There's also not much support to help you maximize your refund or minimize your tax liability.

Tax software companies do a great job of simplifying the filing process, offering guided assistance and the ability to upload tax documents and previous years' returns. Many offer free tiers for simple returns, though they typically have limited features and support.

With TurboTax's basic tier you can report W-2 income, some interest and dividends, child tax credits, the Earned Income Tax Credit and deductions for student loan interest. According to TurboTax, about 37% of filers qualify to use its basic tier for free.

H&R Block also has a free tier for simple returns that's a good option if you're a W-2 employee or student, reporting income from unemployment insurance or claiming the child tax credit.

While both TurboTax and H&R Block are among CNBC Select's top-rated tax software programs, their free versions won't process complicated tax filings. Make sure you qualify first so you don't get redirected to a paid tier.

FreeTaxUSA accepts tax forms other no-cost options don't — including itemized deductions, income from investments and HSA contributions. (Federal filing is free, while state returns are $14.99 each.)

Cash App Taxes is one of the only providers that processes both federal and state taxes for free, with no upselling or rerouting to paid tiers for more complex returns. As a tradeoff, there's no live help available if you have a question.

The Volunteer Income Tax Assistance program provides free in-person tax preparation to people with an AGI of $60,000 or less, with disabilities or with limited English skills.

You will need to visit an office in person and may need to make an appointment. (You can find a provider near you here.)

Another IRS-backed program, Tax Counseling for the Elderly (TCE) funds nonprofit and community efforts that provide free tax preparation for filers 60 and older. Trained volunteers will help prepare simple returns and can answer retirement-related questions. (Some locations also offer self-filing options.)

Check the IRS website or AARP Tax-Aide site locator tool to find a TCE-affiliated location in your area or call 888-227-7669.

Sponsored by the Department of Defense, MilTax is a tax software program for U.S. servicemembers, veterans and their families, with details on how to file in multiple states, how to report deployment and combat pay, and more. Eligible filers can electronically submit a federal return and up to three state returns free of charge.

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every tax guide is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of tax services. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.

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