70% of taxpayers in the US can file taxes for free. Here's how.
USA TODAY
IRS Free File allows more than 100 million people to file taxes at no cost. But only 2% of taxpayers use the service.
A venerable IRS program called Free File allows 70% of taxpayers to file their taxes for free, just as the name implies. Only 2% of taxpayers used the service in 2024.
That is the finding of a February report from NerdWallet, the personal finance site, which describes the free tax program as "woefully" underused.
"It’s just astounding how few of the eligible filers are using this thing every year," said Sam Taube, a lead investing writer at NerdWallet.
The typical taxpayer spends hundreds of dollars on tax software or human preparers to complete their taxes. In 2024, the Biden administration estimated that the average American spends $270 on tax preparation.
Free File, launched in 2003, allows taxpayers with modest incomes to file taxes at no charge, with help from tax preparer partners, an alternative to paid tax-preparation software.
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