The short answer? Yes, many taxpayers can file their federal tax return completely free online—if they qualify. The IRS Free File Program makes it possible for millions of Americans to file their taxes without paying a dime. But there’s a catch: it doesn’t cover everything. And if you’re an expat, nonresident, or someone with foreign income or complex reporting needs, you’re likely not eligible for these services.
Let’s break it down.
What Is IRS Free File?
IRS Free File is a program created by the IRS in partnership with trusted private tax software companies.
To qualify for Free File in 2024, your adjusted gross income (AGI) must be $84,000 or less. If you meet this requirement, you can choose from several private providers to prepare and e-file your federal tax return for free—but only if you access the provider through the official IRS Free File page.
Important: If you go directly to the software company’s main website (like TurboTax.com), you’ll likely be shown a paid product. You must start from the IRS Free File portal to get the free version.
What Is Adjusted Gross Income (AGI)?
Adjusted Gross Income (AGI) is your total income minus certain adjustments the IRS allows you to deduct.
What Counts as Gross Income?
Gross income includes everything you earned throughout the year, such as:
- Wages and salaries (W-2)
- Self-employment income (e.g., freelance or Uber earnings)
- Rental income
- Dividends and interest
- Retirement income
- Capital gains
What Are Adjustments to Income?
These are specific deductions you can take before claiming the standard or itemized deduction. Common adjustments include:
- Half of self-employment tax
- Self-employed health insurance premiums
- Traditional IRA contributions
- Student loan interest
- Educator expenses
Your AGI is shown on Line 11 of Form 1040. It is calculated before the standard or itemized deduction is applied.
Important: If you’re filing jointly, the $84,000 AGI limit applies to your combined income.
Example
John’s Income:
- $60,000 Salary/Wages
- $5,000 freelance consulting
- $3,000 from rental income
- $500 in dividends
Gross Income = $71,000
Adjustments = $1,200 in traditional IRA contributions + $1,500 student loan interest = $2,700
AGI = $71,000 – $2,700 = $68,300
Two Ways to File for Free with IRS Free File
The IRS Free File Program offers two different free filing options, depending on your income level and tax comfort:
1. Guided Tax Software (AGI $84,000 or less)
- Choose from trusted IRS Free File partners
- Answer simple questions—no tax expertise needed
- Software does the math and handles filing for you
- Some providers offer free state returns
- Spanish-language filing available (ezTaxReturn.com)
- Start here: https://apps.irs.gov/app/freeFile/
2. Free File Fillable Forms (All income levels)
- Digital versions of the standard IRS tax forms
- No guidance or prompts—you need to know how to do your own taxes
- Best for confident filers with experience
- Only supports federal returns, no state filing
- Start here: https://www.irs.gov/e-file-providers/free-file-fillable-forms
Is It Really Free?
Yes—as long as you meet the eligibility criteria for the IRS Free File trusted partner you select, you must not be charged for preparing and electronically filing your federal tax return.
However:
- Some providers do charge for state tax returns
- All fees must be clearly disclosed on the partner’s IRS Free File landing page
- You can opt out of state filing and still submit your federal return for free
What About the FBAR?
If you only need to file an FBAR (Report of Foreign Bank and Financial Accounts), you can do it online for free directly through FinCEN at: https://bsaefiling.fincen.treas.gov/NoRegFBARFiler.html
However, this is separate from your tax return and does not replace Form 8938 if you’re required to report foreign assets to the IRS.
What IRS Free File Doesn’t Cover
If you live abroad or have financial ties outside the US, IRS Free File won’t meet your needs.
Not Supported:
- Form 2555 – Foreign Earned Income Exclusion
- Form 1116 – Foreign Tax Credit
- Form 8938 – Statement of Foreign Financial Assets
- Form 5471 – Foreign Corporation Reporting
- Form 3520 / 3520-A – Foreign gifts and trusts
- Form 8621 – PFIC (foreign mutual fund) reporting
- Form 8865 / 8858 – Foreign partnerships or disregarded entities
- Form 1040-NR – Nonresident returns
- Form 8833 – Treaty-based return positions
Even major online self-filing providers don’t support these forms. Also, Free File does not allow electronic filing of prior-year returns.
Bottom Line: Free File Is Great—But Not for Everyone
If your tax situation is simple and you meet the AGI requirement, IRS Free File is a great way to file for free.
But if you:
- Live abroad
- Have foreign income or assets
- Need to file international forms (2555, 1116, 8938, 5471, 8621, etc.)
Then Free File and most self-filing platforms won’t cover your needs.
Who We Help
At American Tax Filings, we don’t offer free tax prep services, but we specialize in complex US tax situations that most free or DIY tools don’t support.
We specialize in:
- US expat tax returns (Form 1040 + FEIE + FTC)
- Nonresident returns (Form 1040-NR)
- Foreign business reporting (Forms 5471, 8865, 8858)
- Trust and gift reporting (Forms 3520, 3520-A)
- Investment and PFIC reporting (Form 8621)
- FATCA and FBAR compliance
- Late filings and catch-up strategies
- Foreign Owned US Single Member LLCs (Form 5472)
We help clients in over 30 countries navigate complex US tax requirements—at transparent, fair prices