Whether you choose to file online, with a professional, or by hand, staying organized and informed will make the experience go more smoothly and even save you money. If the IRS has any concerns about its ability to process tax returns in the next few months, it hasn’t said so in an official capacity. An estimated 30 million taxpayers will qualify for the Direct File program in 2025, the IRS says. More than 140,000 taxpayers filed their federal tax returns through the Direct File program in 2024.
Deductions
As a first-time taxpayer, you’ll most likely be using Form 1040—the most common form used by U.S. taxpayers to file an annual income tax return. In addition to Direct File, the IRS offers the Free File program, in which it partners with online tax software providers to provide free federal income tax return filing. Some providers also allow you to file a state income tax return.
Frequently Asked Questions (FAQs)
- Free File is a partnership between the IRS and leading tax prep sites that allows taxpayers with an adjusted gross income of $84,000 or less to file online for free.
- If you don’t live in a state that offers Direct File yet or otherwise don’t qualify, there are still several options for filing you return for free.
- If you made math errors, you generally don’t have to amend a return.
- Filing as head of household instead of single can also result in a lower tax rate, potentially reducing your tax bill or increasing your refund.
- If you don’t qualify for the IRS Direct File program, you may have other options to file your tax return for free.
- For most taxpayers, the deadline to file a federal tax return is Tuesday, April 15, 2025, at midnight local time.
- By taking advantage of deductions and credits, you can maximize returns.
As mentioned above, the IRS will accept your return as soon as Monday, Jan. 27. This might, however, not be the best choice for you if you want to claim the child tax credit. Amid the more headline-grabbing moves Trump made on his first day — including a delay of the contentious TikTok ban and the rolling back of clean energy initiatives — he also ordered a hiring freeze across the federal government. This, he claimed, was a cost-saving move while the Elon Musk-fronted advisory body, the Department of Government Efficiency, looks for ways to cut government spending. If you need to file a state return, Direct File will guide you to a free state-supported preparation and filing tool after you finish your federal return.
Find out if you need to file a federal tax return
Certain discount offers may not be valid for mobile in-app purchases and may be available only for a limited period of time. Whether you file yourself or get expert help, you’ll get your maximum refund guaranteed, or your money back. We bring together seasoned experts and powerful technology to get your taxes done right. Catch up on CNBC Select’s in-depth coverage of credit cards, banking and money, and follow us on TikTok, Facebook, Instagram and Twitter to stay up to date. Direct File has now expanded to 25 states, with an estimated 30 million taxpayers eligible to use the system. Find what you need to get started, your protections and security, available forms and more about IRS Free File.
- You’ll need to crunch the numbers or talk to a tax professional to see which status is best for your situation.
- You can use Direct File if you lived and worked in a participating state and report certain income, credits and deductions.
- One of the program’s advantages is that, if you have questions as you’re working on your return, you can get live support directly from the IRS via chat or phone.
- IRS Free File lets qualified taxpayers prepare and file federal income tax returns online using guided tax preparation software.
- The Mayor’s Office for Economic Opportunity uses evidence and innovation to reduce poverty and increase equity.
If you don’t live in a state that offers Direct File yet or otherwise don’t qualify, there are still several options for filing you return for free. You can chat live or request a callback from a customer service representative. While taxes are due April 15, the IRS says Direct File will remain active through October 15, 2025, the deadline for individuals who have received an extension.
The following TurboTax Online offers may be available for tax year 2024. Intuit reserves the right to modify or terminate any offer at any time for any reason in its sole discretion. Unless otherwise stated, each offer is not available in combination with any other TurboTax offers.
Government entities
The tax preparer handles all the calculations and will generally e-file for you. As with the other methods, you’ll need to give them all your financial information including W2s, 1099s, etc., and answer some questions about your life circumstances so they can understand your tax situation. Your filing status determines the rate at which income is taxed. Different filing statuses also affect which tax forms you need to fill out, your standard deduction, credits and deductions available to you, and, ultimately, the amount of tax you owe. TurboTax’s free plan allows you to report child tax credits, the https://www.bookstime.com/ Earned Income Tax Credit, deductions for student loan interest and some investment interest and dividends.
- About 90% of users said their experience was excellent or above average, according to a survey of about 11,000 Direct File users in 2024, conducted by the General Services Administration.
- Even if you don’t meet the income requirement, you can still use the site’s fillable forms.
- Direct File is open until October 15, 2025 for people who may have additional time to file.
- This might, however, not be the best choice for you if you want to claim the child tax credit.
- The IRS requires you to report all income, even if you don’t receive a form for reporting it.
- Direct File can save you time by filling in your W-2 wages and other information.
About 90% of users said their experience was excellent or above average, according to a survey of about 11,000 Direct File users in 2024, conducted by the General Services Administration. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories, except where prohibited by law for our mortgage, home equity and other home lending products. Other factors, such as our own proprietary website how is sales tax calculated rules and whether a product is offered in your area or at your self-selected credit score range, can also impact how and where products appear on this site.
According to TurboTax, about 37% of filers qualify to use its basic tier for free. If you make a mistake on your tax return, you have three years to amend it. You can do this by using Form 1040-X, Amended U.S. Individual Income Tax Return. You can how to file taxes for the first time at 18 submit an amended tax return to correct most mistakes electronically using available tax software products. If you filed using a tax professional, they can help you correct the mistake and file an amended return. You can claim credits and deductions when you file your tax return to lower your tax.