The IRS’s Free File program is back for the 2025 tax season, offering a free online tax preparation service for millions of Americans. Now in its 23rd year, the program has seen a significant expansion in eligibility, making it accessible to even more taxpayers.
For the 2025 tax season, the IRS has raised the income limit for its Free File program, allowing individuals with an adjusted gross income (AGI) of up to $84,000 to file their federal taxes at no cost. This marks a $5,000 increase from the previous year’s threshold of $79,000. The move follows last year’s unprecedented $6,000 jump in eligibility, highlighting the agency’s ongoing efforts to make tax filing more accessible. Typically, the income limit increases range from $1,000 to $2,000 per year, and there were no changes in 2021 and 2022.
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According to IRS tax data, approximately 70% of all taxpayers—over 100 million people—now qualify for the Free File program. Notably, eligibility extends beyond individuals with simple tax returns. “Even taxpayers with small businesses, gig income, and rental properties can use Free File as long as their AGI is $84,000 or below,” said Tim Hugo, the executive director of the Free File Alliance.
How IRS free file works
Since its inception, the IRS has collaborated with the Free File Alliance, a nonprofit coalition of tax preparation companies, to provide free guided tax-filing software to qualifying individuals. For the 2025 tax season, eight companies are participating in the program:
- 1040Now
- Drake (1040.com)
- ezTaxReturn.com
- FileYourTaxes.com
- On-Line Taxes
- TaxAct
- TaxHawk (FreeTaxUSA)
- TaxSlayer
While some providers have additional qualifications, such as age or military status requirements, taxpayers meeting the $84,000 income cap will have at least one option available. The IRS website offers a tool to help users determine which provider best suits their needs.
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A major benefit of the Free File program is that participating companies are prohibited from upselling additional services or offering cash advances on anticipated refunds—practices that are common with commercial tax software providers. Users can enter their tax information, including W-2 and 1099 forms, and file their returns at no cost. Many of the services also offer free state tax preparation.
For those earning above $84,000, the IRS provides Free File Fillable Forms, which are available to taxpayers of all income levels. However, these forms require manual entry and calculations as they do not offer guided assistance. Once completed, taxpayers can e-file their returns or mail them to the IRS.
What’s next for the free file program?
Once tax returns are submitted, refunds can be tracked through the IRS’s free “Where’s My Refund?” tool. Electronic filings typically take around 21 days for processing, while paper filings take longer.
Despite its benefits, the Free File program remains underutilized. Since its launch in 2003, only about 75 million returns have been filed through the program, representing just over 2% of all returns processed by the IRS during that time. Nevertheless, the IRS has extended the program’s availability until at least October 2029.
Meanwhile, the IRS’s new federally run tax software, Direct File, is facing an uncertain future. Now in its second year, the program has been introduced in 25 states for taxpayers with simple returns. However, Treasury Secretary Scott Bessent has suggested that it may be discontinued after 2025 due to opposition from the for-profit tax industry and several lawmakers.
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With the IRS Free File program continuing to expand, more taxpayers than ever can take advantage of free, guided tax preparation. However, the program’s long-term success will depend on increased public awareness and participation.
