Overview
The Free File Alliance is a group of tax preparation companies which operate a public-private partnership with the Internal Revenue Service (IRS) to provide free electronic tax filing services under the IRS Free File program to United States taxpayers meeting certain guidelines. The IRS stipulates filers must have an adjusted gross income (AGI) of $73,000 or less for tax year 2022 to qualify, but participating companies can set their own requirements and restrictions. The IRS Free File program is a compromise between the IRS and for-profit tax software companies that enables lower and middle-income filers to file their taxes for free while ensuring the IRS does not develop its own free-to-use tax software that would compete with private, for-profit tax software companies.
Free File Alliance is a 501(c)(4) organization registered as Free File, Inc., and based in Clifton, Virginia. Its executive director is Tim Hugo. While many of the Free File Companies offer free state income tax returns, some companies do charge additional fees of $10 to $30 to electronically file state returns.
As of the 2021 tax filing season, the two most used tax-filing software programs (TurboTax and H&R Block) no longer participate in the Free File program. With the two largest members of the Free File Alliance ending their participation in the Free File Program, there have been renewed calls for the IRS to develop and offer its own free tax-filing software to taxpayers.
Current Alliance members
For tax year 2022, there were 7 participating Alliance members with the following requirements to qualify to use their software for free under the Free File program:
FreeTaxUSA.com, AGI of $41,000 or less. Free state return included.
Online Taxes at OLT.COM, AGI of $41,000 or less (or less than $73,000 if age 67 or older). Free state return included.
TaxAct.com, AGI of $73,000 or less AND age between 20 and 58. Free state return in some states.
TaxSlayer.com, AGI of $60,000 or less AND age 57 or younger. Free state return in some states.
FileYourTaxes.com, AGI between $8,500 and $73,000 AND age 66 or younger. Free state return in some states.
1040NOW.net, AGI of $65,000 or less AND resident of certain states. No free state returns.
ezTaxReturn.com, AGI of $73,000 or less AND resident of certain states. No free state returns.
From Wikipedia (CC BY-SA 4.0).