From Time:

The IRS has expanded eligibility for its Free File program, allowing anyone with an AGI of $79,000 or less to file federal taxes for free online. The income cap has increased by $6,000 from last year, marking the largest annual increase in the program’s history and making many more Americans eligible.

The IRS has partnered with eight companies to offer free tax prep and e-filed returns, including 1040.com, ezTaxReturn.com, and TaxAct. For those with an AGI higher than $79,000, the IRS’s fillable forms tool can be used to complete tax returns.

Eligible taxpayers can now access the guided tax software to get a head start on filing before tax season formally starts on Jan. 29. Despite its benefits, the IRS Free File program remains underutilized, with only about 2% of all taxpayers filing their taxes online through Free File last year.

To use IRS Free File tax software, gather necessary paperwork, choose one of the eight IRS partners based on eligibility, and follow the guided prompts. For those with an AGI above $79,000, the IRS’s Free File Fillable Forms will be available later this month, offering a more manual input process.

The IRS is developing free tax-filing software called Direct File, intended for all taxpayers to use. A beta test will be rolled out this tax season, with the software slated to become available to all taxpayers in a dozen states later this tax season. The software will also let users file state income tax returns where applicable.

Treasury Secretary Janet Yellen tweeted last Friday that she was able to see a demo of Direct File, calling it an “impressive product.” The pilot program will start small in 2024 to allow the IRS to test it and learn from taxpayers.



Read more: IRS Free File Now Open for 2024 Tax Season — Do You Qualify?