IRS FreeFile - Should I Use It? - Plus Earned Income & Child Credits
This article will give you some guidance about whether you should use the IRS's free e-filing (FreeFile) for your taxes for this year. I also provide a few tips about earned income and dependent credits, and certain problems that may screw you up. The FreeFile site provides explanations, links to the options available, and links to helpful information, too.
Although there is only the Form 1040 for most filers (instead of 1040EZ, 1040A and 1040), there are potentially several other schedules, publications and forms you may need to fill out, and it can be confusing. Be sure to follow the instructions!
Last updated 4/19/19 (corrected mis-info on irs.gov based on my reviews, and removed source references in links).
Should I Use It?
Having completed reviews of all 12 IRS-listed providers of free e-filing, it depends on what you need to do and whether you anticipate needing help from customer service. Several sites offer fairly complete filing service as long as your return isn't TOO oddball like the test I reported about in my reviews (start with: Review of IRS-Authorized Free e-File Companies. However, if you expect help navigating the site you choose, there is a vast difference between the best and the worst, which don't even respond to requests for help or are rude, and almost none of them offer advice on taxes. Some sites require that you have a very strong understanding of your tax situation, while others try to help you but NONE of them can be completed without knowing at least some things about your taxes. So, if you don't understand your taxes and don't think you can - or don't want to - you're better off hiring a CPA or another tax expert to file your taxes for you. If you don't mind learning enough about your taxes to make informed decisions when the website you choose can't guide you further, then some of these sites are fine. However, I did find certain sites that should NOT be used because they make too many filing errors, so check out my reviews and make a good choice!
Do I Need to File?
The instructions for the 1040 spell out whether or not you MUST file, but it doesn't say you CANNOT file in the case that you don't need to. The truth is, even if you only earned a small amount last year, like I did, you CAN still file, and you may end up with a refund like me! Some people with NO income will also get a refund, too, depending on their situation!
Why Should I Use FreeFile?
- If you've got a very standard situation that applies to most people, your submission will be received and processed much more quickly, which means your whole tax experience will be over that much more quickly.
- And, if you're expecting a refund, you'll get it a LOT faster than if you file your taxes on paper.
- If you're eligible for the free apps, you'll answer a lot of questions that will help to determine everything, so you won't have to do a lot of calculations and jumping through mental hoops.
- FreeFile sites walk you through everything, asking you questions that attempt to take all the guesswork and errors out of filing.
Who Can Use FreeFile?
There are two different categories. Click on the button on the IRS page for the one that applies to you and then answer the questions, which will determine if you're eligible. If you are, then you will be able to choose which service to use.
- Income over $66,000
- You can use the free forms.
- Must know how to do your taxes yourself.
- Does math; offers only basic guidance.
- You must have your 2017 tax return.
- State tax prep is not available.
- Free File Fillable Forms closes October 20, 2019
- Income equal to or less than $66,000
- You can use the free online software.
- File your taxes with free, easy to use software.
- Free state return options are available.
- Use the Free File Software Lookup Tool to find free federal and free state return options, which will automatically eliminate services you're not eligible for. If you want to see the full list of 12 providers, it'll appear after you click the Free File Software button, and you're allowed to use it instead of the Tool (but you'll have to eliminate ones you're ineligible for yourself). The tool isn't fullproof: Online Taxes (OLT) requires that your adjusted gross income (AGI) is at least $14,000, but it still showed OLT for me.
Limitations of Service
Be sure to read the fine print. Some, if not all, of the providers listed below, do not offer free filing to everyone who qualifies for it! If you don't check the conditions for "free", you may end up paying when you are done filling everything out.
Check the Results
If you have the ability to follow the confusing IRS 1040 booklet, do so. Either complete your tax return on paper, or download all the PDFs you need from the IRS and your state and then fill out the PDFs on your computer (they are set to be completed, although the PDFs of the instruction booklets may not be). Once you have a pretty good idea of the forms and schedules you need to file, and how much your taxes/refund(s) will be, go ahead and try or or more of the e-file websites that the IRS has authorized below. Please make sure to read my notes about each site in my article: Review of IRS FreeFile Companies so you can avoid the abominable ones, like 1040.com and Free 1040 Tax Returns.com (DO NOT go to the the URL freetaxreturns.com as there is something wrong with it and my protection software is blocking it)!
Provider Requirements for the FreeFile Software
Pay attention to the provider's requirements - they are set by each company, not the IRS!
- While the IRS states $66,000 as the initial barrier, companies set their own requirements, including two that have a minimum adjusted gross income (AGI)!
- Age limits vary.
- Free service is offered for:
- Active military: 10 of 12 providers
- Earned Income Tax Credit (EITC): 7 of 12
- Foreign Address: 8 of 12
- Residents of all states served: 9 of 12
- State tax returns: 4 of 12 file your state taxes for free in all states
- There may be other limitations and exceptions, so look carefully!
This table is only a quick-reference and doesn't fully encompass the offerings and conditions of each provider. For example, most providers offer service for people with a qualifying AGI plus age, but some have special conditions, noted with &. Linked conditions are shown with matching '+'s. The fees column is for states that aren't free from the provider (most give free state filing as long as you are eligible for free IRS filing, but several only offer free state filing for certain states). Also, be careful to pay attention so that no mistakes are made by the software!
Please be aware that some states, such as Wisconsin (which has poor instructions but, basically, you right click on the form you want, click "save link as", fill out the PDF that opens, attach any supporting documents, and submit - but make sure that the total of the attachments is 18MB or less), have their own e-File system so if you see that a provider will do your IRS return for free but not your state return, you may be able to use your state's e-File system and some of the providers will allow you to file with them even if you filed a federal return elsewhere.
Please note that certain extensions, like ad/tracking/script blockers may interfere with these websites, so turn them off for the site you're using.
Make sure to use the link I provided. Going directly to some sites without the freefile subfolder on the URL will result in you signing up for the paid service on several sites!
| FreeFile | Min | Max | Max | Active | |
|---|---|---|---|---|---|
| Provider | AGI@ | AGI | Age | AA^ | EITC |
| 1040.com | - | $60,000+ | +52 | 😃 | 😔 |
| 1040NOW.NET & | - | $66,000+& | +60& | 😃 | 😃 |
| e-Smart Tax | - | $66,000+ | +53 | 😃 | 😃 |
| ezTaxReturn & | - | $66,000+# | any | 😔 | 😃 |
| FileYourTaxes | $9,000!+ | $66,000+ | +65 | 😃 | 😃& |
| Free1040TaxReturns.com & | - | $66,000+ | +70&+ | 😃 | 😔 |
| FreeTaxUSA® | - | $35,000 | any | 😃 | 😃 |
| H&R Block | - | $66,000+ | +17-51 | 😃 | 😃 |
| Online Taxes at OLT.com | $14,000! | $66,000 | any | 😃 | 😃 |
| TaxAct® | - | $55,000+ | +56 | 😃 | 😃 |
| TaxSlayer | - | $66,000+ | +50 | 😃 | 😃 |
| TurboTax | - | $34,000 | any | 😃 | 😃 |
@: AGI=Adjusted Gross Income
^: United States Armed Forces; maximum AGI is $66,000.
&: Special conditions; see provider's website or IRS list.
!: Although I listed income below the minimum, OLT & FYT still allowed me to file for free.
| FreeFile | Foreign | Free | State |
|---|---|---|---|
| Provider | Address | State | Filing Fee |
| 1040.com | 😃 | Some& | $9.99 |
| 1040NOW.NET & | 😃 | Some& | $17.95 |
| e-Smart Tax | 😔 | 😔 | $19.95& |
| ezTaxReturn & | 😃 | 😔 | $19.95 |
| FileYourTaxes | 😃 | Some& | $36.50 |
| Free1040TaxReturns.com & | 😔 | +Some& | $29.95 |
| FreeTaxUSA® | 😔 | Some& | $14.99& |
| H&R Block | 😃 | All | |
| Online Taxes at OLT.com | 😃 | All | |
| TaxAct® | 😃 | All | |
| TaxSlayer | 😃 | Some& | $29.00 |
| TurboTax | 😃 | All |
&: Special conditions; see provider's website or IRS list.
What If the Free Filing Software Won't Let Me File, or It Doesn't Work Right?
That happened to me last year because I had no taxable income - the online app simply refused to let me file. In that case, you should look at all the instructions and forms from the IRS to see if you might still get a refund. In my case, because of my strange circumstances and lack of income, I couldn't get a refund, but there are some cases where you can get a refund even if you didn't pay any taxes!
I'm going to try out some, if not all, of these providers and report on it separately.
If You Can't or Don't Want to E-file
I strongly urge you to carefully go through all the instructions as you complete this year's 1040 because failing to read could cause you to incorrectly calculate your tax/refund!! The 1040 may look basic, but it comes with 6 forms, and there are several others you may need, such as the 8812 (to determine your Child Tax Credit), 8888 (for direct deposit of your refund into more than one bank account) and EIC (for the EITC).
Filing Status Tip
When trying to determine your status (single, married filing jointly, married filing separately, head of household or qualifying widow(er)), DO NOT just settle on the first one that you qualify for. Look at each status and then choose, from the ones that you qualify for, whichever will give you the best tax deduction. For myself, I am a widower but cannot file as such (see explanation below), but I qualify for both single and head of household, so I chose the latter because that gave me a bigger standard deduction.
Explanation: my wife died in 2017, was a non-resident foreign national, and thus I couldn't have filed jointly in 2017 or 2018 (or ever). Being unable to file jointly also prevents me from filing as a widower (non-resident foreign nationals aren't US taxpayers, after all). According to the IRS rules, that means I'd have to file as single or head-of-household.
Note about the Earned Income Tax Credit (EITC)
The Earned Income Tax Credit (EITC) Assistant is available for 2016, 2017, and 2018 to help you figure out if you qualify for the EITC, what your filing status should be, how many qualified dependents you have, and the amount of your credit, if any. If you are applying for the (EITC)), you have a non-resident foreign spouse, and whether that spouse is alive or deceased, do not use the IRS's online EITC Assistant](https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/use-the-eitc-assistant) for 2018. The reason for this is that it may incorrectly advise you of your filing status.
Note about the EITC, Child Tax Credit and Credit for Other Dependents, and the Additional Child Tax Credit
If you didn't qualify for one or more last year but your situation has changed, you may be eligible for one or more of these this year!
- Complete all the relevant worksheets in the IRS 1040 booklet!
- You may have to complete Form 8862 if you were previously rejected/denied the EITC by the IRS.
- If you can't get the Child Tax Credit, you may still be eligible for the Additional Child Tax Credit.
- Some people may be eligible for all 3!
- If you get the EITC from the IRS, you should probably get it from your state, too, so be sure to check for that!
Are You Missing a Form?
No problem! All the forms you need for the IRS can be found here. Just type in the name/number of the form that you need into the FIND box, and then press enter. It'll bring up all matches, including for previous years.
Do you REALLY need to talk to a real person at the IRS? Follow these instructions!
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