Tax season can be stressful, and for many Americans, it’s a time of uncertainty. According to a 2023 survey by the National Retail Federation, nearly half of all Americans (46%) reported feeling anxious about filing their taxes. However, this year there’s some good news that might alleviate some of that anxiety.
Thanks to inflation adjustments, many Americans are expected to receive higher tax refunds than in 2023. The IRS has adjusted tax brackets and standard deductions for 2024, potentially leading to a lower tax bracket and a larger refund – even if your income remained the same. Additionally, several deductions and credits have increased, further boosting your potential return.
But the good news doesn’t end there! The IRS offers free filing options for many taxpayers through IRS Free File. This valuable program allows you to prepare and electronically file your federal tax return at no cost using trusted IRS partners.
Whether you’re looking to maximize your refund or simply avoid the hassle and expense of paid tax preparation services, IRS Free File provides a convenient and secure solution. Let’s dive into the details on how to file your federal taxes for free and take advantage of this service.
Step 1: Check Your Eligibility
Visit the IRS Free File website at https://apps.irs.gov/app/freeFile to see if you qualify. Most taxpayers with an Adjusted Gross Income (AGI) of $79,000 or less in 2023 are eligible. You can also find information on eligibility requirements based on age, income, and state residency.
Step 2: Choose Your Filing Method
The IRS Free File website offers two ways to file for free:
- Partner-assisted filing: Partner with one of the IRS-approved Free File providers to prepare and electronically file your return. This option involves using the partner’s software and guidance throughout the process.
- Free File Fillable Forms: Use IRS-provided fillable forms to complete your return online and then electronically file it directly with the IRS. This option is suitable for taxpayers with simpler tax situations who are comfortable navigating forms independently.
Option 1: Partner-assisted filing
Step 3: Find Your Trusted Partner
Follow steps 3 and 4 from the previous version to choose your preferred Free File partner based on your needs like user-friendliness, state filing availability, and customer support.
Step 4: File Your Return
Follow the specific instructions and utilize the tools provided by your chosen partner to complete your tax return electronically. Gather all your tax documents for this process.
Step 5: Submit Your Return
Once finalized, electronically submit your return directly to the IRS through your chosen partner’s platform. They will handle the filing process and notify you upon acc
eptance.
Option 2: Free File Fillable Forms
Step 3: Access the Forms
Click on the “Free File Fillable Forms” tab on the IRS Free File website. Choose the appropriate federal tax forms based on your filing status and tax situation.
Step 4: Complete the Forms
Carefully follow the instructions and complete the forms electronically. You can save your progress and return later to finish.
Step 5: E-file Your Return
Once completed, electronically file your return directly with the IRS through the IRS Free File
website.
Additional Tips:
- File electronically: E-filing is not only free through IRS Free File, but also faster and more secure.
- Gather your documents: Having all your tax documents organized beforehand will make the filing process smoother.
- Start early: Don’t wait until the last minute to file your taxes. Starting early allows ample time to prepare.
- Seek professional help: If you have a complex tax situation or need additional guidance, consider consulting a tax professional.
Common Deductions and Credits for Tax Filers in 2024
While utilizing IRS Free File can save you money on filing fees, maximizing your deductions and credits can further increase your tax refund. Here are some common deductions and credits available to taxpayers in 2024, along with their maximum allowed amounts:
Deductions:
Standard Deduction: This is a set dollar amount that reduces your taxable income, regardless of your actual expenses. The standard deduction amount varies depending on your filing status:
- Single: $13,850
- Married Filing Jointly: $27,700
- Head of Household: $20,500
- Married Filing Separately: $13,850
Student Loan Interest: You can deduct up to $2,500 of interest paid on qualified student loans.
Charitable Donations: You can deduct contributions to qualified charitable organizations, up to 60% of your adjusted gross income (AGI).
Medical and Dental Expenses: You can deduct medical and dental expenses that exceed 7.5% of your AGI.
Mortgage Interest: You can deduct the interest paid on your mortgage, up to $750,000 for loans taken out after Dec 15th, 2017, or $1,100,000 for loans taken out before.
Credits:
Earned Income Tax Credit (EITC): This credit is available to low- and moderate-income workers and families. The amount of the credit depends on your filing status, income, and the number of qualifying children you have. The maximum EITC amount can vary significantly, so it’s important to check the IRS website for current figures.
Child Tax Credit: This credit is available for each qualifying child under the age of 17. The credit amount is $2,000 per child in 2024.
Retirement Savings Credit: This credit incentivizes contributions to retirement accounts like IRAs. The maximum credit amount is $1,000 for individuals with an AGI of less than $19,000 ($38,000 for married couples filing jointly).
Note: This is not an exhaustive list, and there are many other deductions and credits available to taxpayers depending on their specific circumstances. It’s crucial to consult with a tax professional or visit the IRS website for a comprehensive list of deductions and credits and to determine your eligibility and potential benefit.
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