IRS Free File: For Illinoisans with a household income of ≤ $250,000

Direct File:

The IRS through its secure Direct File Program has made it easy and free to file taxes online in 25 states. The program will open in January 27,2025, the same start date as the tax season.

What is Direct File?

This is a new IRS service (free tax-prep program) that allows eligible taxpayers to prepare and file their federal tax returns online for free.

Income

• Income from an employer (W2): $200,000 for a Single filer with one employer or $168,000 for a Single filer with multiple employers, $250,000 for Married Filing Jointly (MFJ), and $125,000 for Married Filing Separately (MFS).
• Social Security benefits (SSA-1099)
• Distributions for qualified medical expenses from Health Savings Accounts
• Unemployment compensation (1099-G)
• Interest income (1099-INT)
• Retirement income (1099-R)
• Alaska Permanent Fund Dividend

Income not supported: Gig economy, Rental, or Business Income

Credits:

• Earned income tax Credit
• Child tax credit
• Credit for other dependents
• Child and dependent care credit
• Premium tax credit
• Credit for older people or the disabled
• Retirement savings contributions credit

Deductions

• Standard deduction
• Student loan interest
• Educator expenses
• Health savings account (HSA) deduction

Does not support Itemized deductions.

State Tax Returns

IRS Direct File does not prepare state tax returns. However, after completing your federal return, Direct File will guide you to the Illinois State-Supported Tax Filing Tools.

Other Free Filing Options

If the IRS Direct File is not an option for you, consider these alternatives:

• IRS Free File: Free filing for household income of  $84,000 and below. It is a partnership between the IRS and commercial tax providers.
• Volunteer Assistance: Free tax preparation provided by IRS-certified volunteers
• MilTax: Free federal filing for military members, including up to three state returns

Timeless Taxes & Accounting offers bookkeeping, accounting and tax services for individuals and small businesses.