Can you file your 2025 taxes for free this year? Yes. If your adjusted gross income (AGI) was $89,000 or less in 2025, you can use IRS Free File to prepare and e-file your federal return at no cost through partner companies like TaxAct and TaxSlayer. If your income exceeded that threshold, IRS Free File Fillable Forms lets anyone file for free by completing electronic versions of tax forms manually. Two additional free options, MilTax and VITA/TCE, serve military families and lower-income taxpayers respectively.
Tax season opened on January 26, 2026, and the filing deadline is April 15. The biggest change from last year is the end of IRS Direct File, the pilot program that let taxpayers in select states file simple returns directly with the IRS. The Trump administration discontinued the program in early 2025, citing costs. That leaves four free filing methods, all of which are available right now. If you filed using Direct File last year, you'll need to choose a replacement.
How IRS Free File Works Step by Step
IRS Free File is a partnership between the IRS and private tax software companies. The companies agree to offer free guided tax preparation to taxpayers who meet the income requirements. In exchange, the IRS promotes the program on its website.
Step 1: Go directly to IRS.gov/freefile. This is critical. If you search for "free tax filing" and click on a commercial tax software site, you'll likely end up in their paid product. The IRS Free File landing page links you to genuinely free versions that the companies are contractually obligated to provide.
Step 2: Use the "Browse All Offers" tool. The IRS website includes a tool that asks your AGI, age, state of residence, and filing status, then shows you which Free File partners can serve you. Different partners have different qualifying criteria beyond the $89,000 income cap.
Step 3: Select a partner and create an account. Each Free File partner runs their own software. You'll create an account on their platform, but the service is free for your federal return. Some partners also include free state filing, while others charge $15 to $40 for state returns. Check before you start.
Step 4: Answer interview questions. The guided software asks about your income, deductions, and credits. It fills out the appropriate IRS forms based on your answers. New this year: the software handles Schedule 1-A for the no-tax-on-tips, no-tax-on-overtime, and car loan interest deductions added by the "One, Big, Beautiful Bill."
Step 5: Review and e-file. Before submitting, the software performs a basic error check. Review every number carefully, especially if you're claiming the new deductions. Then e-file your return directly to the IRS.
For a broader overview of this year's free filing landscape, our earlier guide to filing taxes for free in 2026 covers the four options at a higher level.
New Deductions You Need to Know About
The 2025 tax year introduced several deductions that affect how you file, and getting them right could save you hundreds or thousands of dollars.
No tax on tips. If you earned tips as part of your income, you can deduct that tip income from your federal taxable income using Schedule 1-A. This applies to cash tips, credit card tips, and allocated tips reported on your W-2. The IRS estimates 4 million workers will benefit from this deduction in the first year.
No tax on overtime. Overtime pay, defined as hours worked beyond 40 per week at time-and-a-half or higher rates, can now be deducted. Your W-2 should separately report overtime earnings, but if it doesn't, you may need records from your employer to calculate the deductible amount.
Car loan interest deduction. Interest paid on auto loans for vehicles manufactured in the United States is now deductible. You'll need your annual loan interest statement from your lender (Form 1098 or a year-end summary) and proof that your vehicle qualifies.
Enhanced senior deduction. Taxpayers aged 65 and older receive an additional standard deduction amount that increased for 2025. This stacks with the regular standard deduction and doesn't require itemizing.
If you're also thinking about longer-term financial planning, our guide on what a 401(k) match is explains how employer contributions affect your tax picture.
Free File Fillable Forms: The No-Income-Limit Option
If your AGI exceeded $89,000, IRS Free File Fillable Forms is your free option. This is essentially an electronic version of paper tax forms, with no guided interview, no hand-holding, and no income restrictions.
Who should use this option: People who are comfortable reading IRS instructions and filling out forms without guidance. If you've prepared paper returns before, this is the digital equivalent. If you've always used guided software, the learning curve will be steep.
What to know: Fillable Forms performs limited calculations (basic math) but does not suggest which forms or schedules you need. You must know to file Schedule 1-A for the new deductions, for example. The system does perform a basic error check before submission.
Limitations: Free File Fillable Forms supports federal returns only. You'll need to file your state return separately, either through your state's tax website or by paying for a state return through commercial software.
Avoiding Common Traps
The bait-and-switch problem. Tax software companies have a long history of steering Free File-eligible taxpayers toward paid products. In 2024, the FTC fined Intuit $141 million for deceptive advertising of "free" TurboTax products. Always start at IRS.gov/freefile and click through to partner sites from there.
State filing fees. Free File guarantees free federal filing, not free state filing. Some partners include state returns for free; others charge. If your state has no income tax (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, or Wyoming), this isn't a concern.
Missing the deadline. If you can't file by April 15, file for a free extension using Form 4868. This gives you until October 15 to submit your return. However, an extension to file is not an extension to pay. If you owe taxes, interest begins accruing after April 15 regardless of whether you filed an extension.
Forgetting the new forms. If you earned tips, overtime, or paid qualifying car loan interest, make sure your chosen software supports Schedule 1-A. All IRS Free File partners have been updated, but verify before entering your information.
Key Takeaways
You can absolutely file your 2025 federal taxes for free. IRS Free File works for incomes of $89,000 or less with guided software. Free File Fillable Forms works for any income if you're comfortable with tax forms. MilTax serves military families, and VITA/TCE offers free in-person help. Start at IRS.gov/freefile, never at a commercial tax software website. File by April 15 or request a free extension, and make sure you claim the new deductions for tips, overtime, and car loan interest if they apply to you.
Sources
- IRS Free File: Do Your Federal Taxes for Free - Internal Revenue Service
- Free File Fillable Forms - Internal Revenue Service
- Tax Filing Season 2026: What You Need to Know - IRS Newsroom
- Schedule 1-A Instructions - Internal Revenue Service
- VITA and TCE Locations - Internal Revenue Service
