In the world of tax filing, there’s some good news if you’re looking to save money. As financial experts point out, several options are available for filing your 2024 taxes without spending a dime.
This year, more than 30 million taxpayers might qualify for Direct File, the IRS’s free tax filing service, according to the U.S. Department of the Treasury. Former IRS Commissioner Danny Werfel highlighted in an early January press briefing that Direct File has now extended its reach across 25 states and can handle more diverse tax situations compared to last year.
Another route is the IRS Free File, which offers free guided tax preparation software for those with an adjusted gross income (AGI) of $84,000 or less in 2024. Although an estimated 70% of taxpayers qualify for this service, only a small percentage actually take advantage of it, according to Tim Hugo, the executive director of the Free File Alliance. Additionally, many people are eligible for assistance through the Volunteer Income Tax Assistance (VITA) program, a free service run by the IRS. Generally, if your AGI is $67,000 or less, you can use VITA.
When it comes to natural disaster victims, there is some relief. While the federal tax deadline is April 15 for most, certain filers, like those affected by California wildfires, have extended deadlines to file returns and pay taxes due. The IRS offers a comprehensive calendar of tax relief dates for different disaster situations. Furthermore, Congress extended tax relief until early 2025 for victims impacted by federally declared natural disasters from 2020 onward. This means some people could receive larger tax deductions for their losses.
Now, if you’re itching to get your taxes done quickly, it’s vital to ensure you have all the necessary forms first. Brian Long, a senior tax advisor and certified public accountant at Wealth Enhancement in Minneapolis, emphasizes that missing or incorrect information can cause your return to be flagged by the IRS, potentially delaying processing. Long suggests using your previous year’s return as a handy checklist to ensure everything is accurate. While many tax documents arrive in January, be prepared for some to come in February or even March, according to experts.
