Where to file taxes for free 2024: Tax prep help available
HOUSTON - The tax filing season is now open. And this year, you may be able to file electronically for free using a new IRS program.
The IRS is testing its new Direct File program in 12 states, including Texas. Direct File lets taxpayers file federal tax returns electronically for free with no income limits. Those with simple returns, like taking the standard deduction and the Earned Income or Child Tax credits can use it. However, those who itemize or take certain other credits are not eligible.
Free File is also available. It's free access to professional tax preparation software for those who qualify. The income limit was raised to $73,000. It can help qualified households make sure they claim the Earned Income Tax Credit.
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"One in five do not take the Earned Income Credit, which can be upwards of $6,400," said Mark Steber with Jackson Hewitt Tax Services.
Taxpayers are urged to file early to prevent identity thieves from stealing their refunds.
"Here's the tip for your viewers: if you owe taxes, and you file, you still don’t have to pay until tax day. Filing is a separate transaction than paying. The two are not the same," explained Steber.
The 2023 standard deduction was raised to $13,850 for individuals and $27,700 for married couples filing jointly.
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FILE PHOTO. A U.S. Department of the Treasury Internal Revenue Service (IRS) 1040 Individual Income Tax form. (Photographer: Daniel Acker/Bloomberg via Getty Images)
And tax brackets were adjusted up by a record 7%, which could lower some taxpayers' rates. If your income was $42,000, for example, you dropped from the 22% tax bracket to 12%.
"There are increases in credits, like the Earned Income Tax Credit, which went up, and some other additional deductions for people who are self-employed or have side gig activity," said Steber.
For federal student loan borrowers, the interest paid is tax-deductible. And due to the American Rescue Plan Act, federal student loan forgiveness made between 2021 and 2025 is generally tax-free.
Free tax preparation assistance is available to those who qualify. BakerRipley is expanding its free Neighborhood Tax Centers to 27 sites in Greater Houston and Montgomery County. Visit www.bakerripley.org or call (713) 273-3755 or 211, the Texas/United Way HELPLINE.
And the Volunteer Income Tax Assistance Sites are also opening.