How to File Your Federal and State Taxes Online for Free

You can often file both your federal and state tax returns online for no fee by using official IRS tools and your state’s own filing system or partner programs. The main official systems involved are the IRS Free File program and your state Department of Revenue/Taxation online portal.

Quick summary: How free online filing usually works

• Federal returns: Usually filed free through the IRS Free File program or IRS online tools if you meet income or other criteria.
• State returns: Often filed free through your state Department of Revenue/Taxation site or through a partner software in the Free File program.
• Core next action today:Check your eligibility on the IRS Free File page and then follow links to either IRS Direct File (if available) or a free partner product.
• You’ll need:W‑2s, 1099s, and last year’s return to start.
• What happens next: After e‑filing, you typically get an electronic acknowledgment within minutes to 48 hours.
• Common snag: People start filing and then realize they’re missing key forms (like a late 1099), which can delay or force amendments later.
• Where to get help:IRS Volunteer Income Tax Assistance (VITA) sites, your state Department of Revenue, or a reputable local nonprofit tax clinic.

Rules, available tools, and income limits can vary by state and year, so always confirm details on your current federal and state government sites.

1. Where to file free: the actual official systems

For free online filing, you’ll typically work with two kinds of official systems:

• IRS tax systems (for federal returns):

  • IRS Free File – a partnership between the IRS and private tax software companies. Depending on your adjusted gross income (AGI) or other factors, you may qualify to prepare and e‑file a federal return at no cost.
  • In some years and locations, an IRS-run online filing tool (such as Direct File pilots) may also allow certain taxpayers to file free directly on an IRS system.

• State tax systems (for state returns):

  • Your state Department of Revenue/Department of Taxation electronic filing portal is the official place to see state-level free options. Some states have their own “Free File” or “Free e‑File” system, others piggyback off the IRS Free File partner products.
  • Search for your state’s official Department of Revenue/Taxation portal and look for pages labeled “individual income tax e‑file” or “free file options.”

To avoid scams, look for sites that end in .gov, and when in doubt, start from the main IRS site or your state’s main government site and follow links to their tax section.

2. Key terms to know

Key terms to know:

• Adjusted Gross Income (AGI) — Your total income minus certain adjustments (like some student loan interest, retirement contributions); many free-file programs use your AGI to decide eligibility.
• E‑file — Submitting your tax return electronically instead of mailing paper forms.
• Refund — Money the government sends you back when your tax payments and credits are more than what you owe.
• Tax credit — A dollar‑for‑dollar reduction in tax owed (for example, the Earned Income Tax Credit); some credits are refundable, which may increase your refund even if you owe no tax.

3. Documents you’ll typically need

Documents you’ll typically need:

• W‑2 forms from each employer you worked for during the year.
• 1099 forms for other income (1099‑NEC for gig/contract work, 1099‑INT for bank interest, 1099‑G for unemployment, 1099‑R for retirement distributions, etc.).
• Last year’s federal and state tax returns, which often contain your prior‑year AGI and other data used to verify your identity for e‑filing.

You may also need Social Security numbers or ITINs for everyone on the return, routing and account numbers if you want direct deposit, and any forms related to health insurance, education, or childcare (such as 1095‑A for Marketplace insurance or 1098‑T for tuition).

4. Step‑by‑step: Filing federal and state taxes online for free

Step 1: Confirm you actually need to file

1. Check if your income and filing status require a return this year.
2. Use the IRS “Do I Need to File?” tool or guidance on the IRS site; some states have a similar tool on the Department of Revenue portal.

What to expect next: You might find that you’re not required to file but still want to, for example to claim a refund or refundable credits like the Earned Income Tax Credit or Child Tax Credit.

Step 2: Check your eligibility for free federal filing

1. Go to the official IRS Free File area by starting at the main IRS site and following the “Free File” link (look for the .gov domain).
2. Review the income limits and other criteria listed for the current tax year; many Free File software partners set an AGI cap (for example, “AGI $79,000 or less”).
3. If available for your state and situation, consider any IRS pilot program (such as Direct File) that may allow filing directly with the IRS.

What to expect next: Once you confirm you qualify, you’ll see a list of Free File partner products (software brands) or an IRS‑run tool. Each option will list which states it supports and any additional criteria, like age or military status.

Step 3: Choose a free product that covers your state

1. From the IRS Free File options, read the details for each product carefully. Look for:
   • Whether it includes free state returns (some only cover federal for free).
   • Which states are supported.
   • Any extra eligibility rules (age, military, student, etc.).
2. If you live in a state that has its own free filing portal, also check your state Department of Revenue/Taxation site for a direct free e‑file option that may be simpler.
3. Decide whether you’ll:
   • File federal and state together in one Free File product, or
   • File federal free through IRS/partner software and state separately through your state’s portal.

What to expect next: After picking a product, you’ll typically create a user account within that partner site or start the process on the state’s e‑file system, then be guided through entering your income and deduction information.

Step 4: Gather your documents before you start

1. Collect all W‑2s and 1099s before opening the software or portal. Employers and payers usually must send these by late January, but some come later.
2. Have last year’s return handy for your prior‑year AGI and adjusted information; many e‑file systems use this to verify your identity.
3. If you expect credits or deductions (childcare, education, health insurance marketplace coverage), gather any related forms or receipts.

What to expect next: With everything in front of you, the software or portal will ask questions line by line; answering accurately is easier and faster when you’re not pausing to hunt for missing forms.

Step 5: Complete your federal return online

1. Log in to your chosen Free File partner or IRS tool and select “Start new 20XX return” (or similar wording).
2. Enter your personal information exactly as it appears on your Social Security card and prior tax return.
3. Input income from each W‑2 and 1099; the software usually has fields that mirror the boxes on your forms.
4. Work through questions about deductions and credits; answer honestly and skip what doesn’t apply.

What to expect next: The system calculates your federal refund or amount due in real time. At the end, you’ll review a summary and can often see a preview of the actual Form 1040 before e‑filing.

Step 6: Add your state return (in the same product, if possible)

1. If your chosen product supports your state, select “Prepare state return” after finishing the federal portion.
2. The software will usually pull data from your federal return automatically (income, filing status, dependents).
3. Answer any extra state‑specific questions, like local credits, property tax information, or state‑level deductions.
4. Confirm that the program still shows $0 state filing fee before you proceed; some products try to upsell to paid versions.

What to expect next: You’ll get a combined e‑file summary for federal and state. You’ll usually see two separate acknowledgments later—one from the IRS and one from your state Department of Revenue.

Step 7: If needed, file your state return separately

If your Free File product does not support your state or charges a fee for the state:

1. Finish and e‑file your federal return for free through the IRS/partner product.
2. Go to your state Department of Revenue/Taxation portal and look for a “Free e‑File” or “Online Individual Income Tax Filing” link.
3. Create an account and follow their online filing steps, manually entering the key numbers from your federal return (AGI, federal tax, etc.).

What to expect next: Your state portal will usually provide an on‑screen confirmation when you submit, followed by an email or message center note once your return is processed.

Step 8: Submit and track your returns

1. Before e‑filing, double‑check:
   • Direct deposit information (routing and account numbers).
   • All names and Social Security numbers.
   • That your fees show as $0 for the free versions.
2. Hit “Submit” or “E‑file” for both federal and state.
3. Save or print the confirmation pages and any PDFs of your returns.

What to expect next:

• The IRS typically sends an e‑file acknowledgment within minutes to 48 hours.
• Your state Department of Revenue usually sends a similar acknowledgment.
• You can later use official tools like “Where’s My Refund?” on the IRS and state portals to check status; timing varies and is never guaranteed.

Real-world friction to watch for

Real-world friction to watch for

One common problem is starting a free return in a software product and only discovering near the end that your specific situation isn’t fully covered by the free version (for example, certain self‑employment schedules or multiple state returns). If this happens, you can usually back out before paying, then choose another Free File partner or use your state’s own portal—but you may need to re‑enter your information from scratch, so it pays to check each product’s “Who qualifies” and “What’s included free” section before you start.

Legitimate help options (and how to reach them)

If you get stuck or are unsure how to proceed, there are several official and low‑cost help sources:

• IRS Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE):

  • These programs provide free in‑person tax preparation to people who typically have lower to moderate income, are older adults, or have limited English.
  • Search for “VITA site locator” on the IRS site and make an appointment; bring your ID, Social Security cards, W‑2s, 1099s, and last year’s return.

• State Department of Revenue/Taxation help lines:

  • Many states operate phone lines and walk‑in counters to answer questions about state e‑filing and refunds.
  • Call the customer service number listed on your state’s official .gov tax site; be ready with your Social Security number, filing status, and exact refund amount if you’re asking about a filed return.
  • A simple script: “I’m trying to file my individual income tax return online using your free options. Can you tell me which system I should use and what it costs?”

• Low‑income taxpayer clinics and legal aid tax units:

  • If you have IRS disputes, audits, or back‑tax issues that make filing complicated, look for IRS‑recognized Low Income Taxpayer Clinics or local legal aid organizations with tax units.

Because this process involves sensitive personal data and potential refunds, be cautious of scams and fake “free file” offers. Avoid giving personal information to sites that do not end in .gov or that are not clearly linked from the official IRS or state Department of Revenue portals, and never share your tax information by email or text with anyone claiming to be from the IRS or a state agency. Once you’ve checked your Free File eligibility and gathered your documents, your practical next step today is to log in to an official IRS‑linked Free File product or your state’s .gov tax portal and start your return while your paperwork is in front of you.