Free Federal Tax Filing: For households with 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.

Participating States: Only residents of these states can use the IRS Direct File

IRS Direct File Supported Income, Credits and Deductions

Income

• Income from an employer (W2): $200,000, $168,000 for a single filer with one employer or multiple employers respectively, $250,000 for married filing jointly (MFJ), $125,000 for married filing separately (MFS).
• Social Security benefits (SSA-1099)
• 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 the elderly 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 the completion of your federal tax return, Direct File will guide you to your 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: A partnership between the IRS and commercial tax providers. It has an income limit of  $84,000 .
• Volunteer Assistance: Tax preparation by IRS-certified volunteers
• MilTax: Free federal filing for military members, including up to three state returns

Timeless Taxes & Accounting offers expert guidance on bookkeeping, accounting, advisory, fractional CFO as well as individual and small business taxes. Contact us at info@timelesstaxesandaccounting.com.