Unlocking Savings: Only 3% of Americans Utilized Free Federal Tax Filing Last Season

Many Americans want to save money on tax filing as tax season approaches. Even though IRS Free federal Tax Filing has been free since 2002, qualified taxpayers seldom use it.

Unlocking Savings: Only 3% of Americans Utilized Free Federal Tax Filing Last Season (Photo: Google)

Utilized Free Federal Tax Filing

IRS Free File is a partnership between the IRS and the nonprofit Free File Alliance of tax software providers. This program was available to 70% of taxpayers, but just 3% used it last season.

IRS Free File has a liberal adjusted gross income maximum of $79,000 for 2023. This threshold rose from $73,000 last year. Free File offers Fillable Forms for taxpayers of all income levels as an electronic alternative to paper filings.

While Free File may seem limited to simple tax returns, it can handle many tax issues. Free File Partners’ software includes several typical federal income tax forms and schedules, including Schedule B for interest and dividends and Schedule C for self-employment income.

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The Importance of IRS Free Federal Tax Filing

Despite its flexibility, Free File is sometimes disregarded by people who prefer paid tax preparation services or software. However, IRS Commissioner Danny Werfel stresses that Free File is still useful for collecting child and earned income tax credits.

In conclusion, IRS Free File makes tax filing easy and affordable for eligible individuals. Free File’s user-friendly software and broad tax form and schedule coverage help taxpayers optimize tax savings and comply with federal tax rules.

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