Key Takeaways
- IRS Free File for tax year 2025 (returns filed in 2026): AGI of $89,000 or less qualifies - the highest limit ever, up $5,000 from last year.
- TurboTax and H&R Block are NOT IRS Free File partners. They have their own free tiers for very simple returns, but those are separate from the IRS program.
- TaxAct, FreeTaxUSA (TaxHawk), and TaxSlayer are among the 8 current IRS Free File partners at the $89,000 AGI threshold.
- IRS Direct File was discontinued at the end of 2025 and is not available for the 2026 filing season.
- VITA provides free in-person filing help for income generally up to about $67,000 - worth using if you qualify.
- If you earned tips or overtime in 2025, confirm your chosen software supports Schedule 1-A (the new OBBBA deduction form) before you start.
The IRS Free File AGI limit for 2026 is $89,000 — the highest it’s ever been. If your adjusted gross income lands at or below that number, free guided filing is available through 8 partner software companies. Above it, you’re paying. Here’s what’s worth using this year and what’s changed.
What’s New for 2026
Two things are meaningfully different from prior seasons.
IRS Direct File is gone. The government’s own free filing pilot, launched in 2024, was discontinued at the end of 2025. Low participation (under 0.5% of filers) and a $138 per-return cost ended it. If you used Direct File before, you’ll need to switch to a Free File partner or paid software.
The Free File AGI limit jumped to $89,000 — up $5,000 from last year. That’s a meaningful expansion. But TurboTax and H&R Block are still not part of the program, so starting at their sites takes you directly to paid products, not Free File.
Also new: the One Big Beautiful Bill Act (OBBBA) added four above-the-line deductions — tips, overtime, auto loan interest, and a senior bonus — all reported on the new Schedule 1-A. Most major software has updated for this, but it’s worth confirming before you start if any of these apply to you.
Paid Tax Software
TurboTax
TurboTax is still the most polished experience for most filers. The step-by-step interface handles everything from a simple W-2 return to self-employment income, investments, rental property, and the new OBBBA deductions. Their calculation accuracy guarantee — where they cover any IRS penalty caused by a software math error — is a legitimate differentiator.
The downside is price. TurboTax is the most expensive mainstream option, and their upsell flow is aggressive. If your return is straightforward, you’re likely overpaying.
TurboTax has its own free tier for very simple returns (W-2 only, no schedules). That’s their product — not IRS Free File.
H&R Block
H&R Block’s software has improved a lot in recent years. The interface is cleaner, guidance is solid, and the free audit support from enrolled agents is genuinely useful. They’re typically priced below TurboTax for comparable tiers.
Their in-person office network is also a real advantage if you want the option of walking in somewhere with a question — TurboTax doesn’t offer that.
H&R Block also has their own free tier for simple returns. Like TurboTax, it’s separate from IRS Free File — they exited the program in 2022.
TaxAct
TaxAct is a strong middle-ground option: full-featured software at meaningfully lower cost than the big two. They handle most return types well, including OBBBA deductions. The Xpert Help feature adds access to tax professionals when you get stuck.
TaxAct is also one of the 8 current IRS Free File partners — so if your AGI is $89,000 or below, you may be able to use TaxAct through the IRS portal at no cost for your federal return. State filing costs extra through any route.
FreeTaxUSA (TaxHawk)
This one flies under the radar but it’s one of the best values out there. Federal filing is free for everyone — no income limit — and state costs $15. FreeTaxUSA is also an IRS Free File partner for the $89,000 threshold.
The interface is less polished than TurboTax, but it handles a solid range of return types and has strong reviews. For anyone who wants free federal filing without jumping through AGI hoops, this is where I’d point first.
Things can shift between now and the next filing season. I’ll update this page when new information comes in — subscribe here to get notified.
IRS Free File: The 8 Current Partners
If your AGI is $89,000 or below, always start at irs.gov/freefile — not at any software company’s homepage. Each partner sets its own eligibility rules beyond income (age, state, supported forms), so you may not qualify for every partner even if you’re under the threshold.
| Provider | Notes |
|---|---|
| 1040Now | Basic federal filing |
| Drake (1040.com) | Professional-grade software, now consumer-facing |
| ezTaxReturn.com | Simple interface, limited state support |
| FileYourTaxes.com | Broad state coverage |
| On-Line Taxes | Long-running Free File partner |
| TaxAct | Full-featured; state filing costs extra |
| TaxHawk (FreeTaxUSA) | Free federal, $15 state; strong reputation |
| TaxSlayer | Good for self-employed and OBBBA deductions |
TurboTax is not on this list. H&R Block is not on this list. If you see either name on a “free filing” page, you’re using their own product — which may have hidden upgrade costs for anything beyond the simplest returns.
For a full breakdown of all free options including VITA and Free File Fillable Forms, see: How to File Your Federal Taxes for Free in 2026.
VITA and Other Free Options
If your income is generally below about $67,000, VITA (Volunteer Income Tax Assistance) is worth looking into. IRS-certified volunteers prepare your return in person at no cost — typically at libraries, community centers, and churches. Call 1-800-906-9887 or search “VITA near me” to find a site.
AARP Tax-Aide serves anyone 50 or older regardless of income, with a focus on retirement tax issues.
Free File Fillable Forms are available to anyone at any income level — no guided software, just the IRS forms online. For people who know exactly what they’re doing and just want to file electronically at no cost.
Cryptocurrency
Crypto is still fully taxable. Every sale, swap, or purchase using crypto is a taxable event — you need accurate cost basis records. The IRS has been increasing enforcement here, and the new 1099-DA form from brokers and exchanges is making that tracking more automated.
TurboTax handles crypto best for most people, with direct exchange integrations. TaxAct is also solid. For very high transaction volumes, a crypto-specific tax tool that exports into your main software may be cleaner — but for the majority of filers, TurboTax or TaxAct handles it fine.
Common Issues to Watch Out For
The most common mistake I see: starting at turbotax.com or hrblock.com and assuming you’re getting IRS Free File. You’re not. Always go through irs.gov/freefile if you want the actual program.
Second: OBBBA deductions. If you earned tips or significant overtime in 2025, check that your software supports Schedule 1-A before you enter your information. Some Free File partners added full support later in the season. TaxSlayer and TaxAct are generally ahead here.
Third: state filing is always separate. IRS Free File only covers your federal return. State filing costs extra at most providers — FreeTaxUSA at $15/state is one of the more affordable options.
Finally: don’t wait until April 15. Software queues and customer support get overwhelmed in the final weeks. Filing in February or early March gets you a faster refund and far less frustration. Check our IRS refund schedule for processing time estimates once you’ve filed.
Looking Ahead: 2027
The Free File AGI limit has risen every year for the past several years. I’d expect another increase for the 2027 season (covering 2026 income) — possibly to $90,000–$92,000 — though the IRS typically announces it in October or November 2026 alongside the filing calendar.
The bigger wildcard is the Free File partner list. The alliance has been stable at 8 partners since H&R Block’s exit in 2022, but any departures or additions would change what’s available. I’ll update this page when that’s confirmed.
For OBBBA: tips, overtime, auto loan, and senior deductions apply through the 2028 tax year, so software providers will continue refining Schedule 1-A support over the next few cycles.
