How to File Your Basic Federal Tax Return for Free

Updated for tax year 2024.

We get it, filing your taxes is a chore you’d rather not do. That’s why TaxAct® makes the tax prep process as seamless and easy as possible for taxpayers. You don’t have to be a tax professional to file your own taxes with us — TaxAct walks you through everything step-by-step. And did we mention you can file your basic federal tax return with us for free¹ if you qualify this tax season?

Free federal filing FAQs

Is TaxAct’s basic federal offering actually free?

Not everyone has to pay for federal returns. Free federal filing is available with TaxAct to filers that qualify based on their income and deductions¹.

Our online basic federal option is free and includes your tax return essentials like W-2 income plus retirement and unemployment income. You can also claim popular tax breaks for dependents and current students like the Child Tax Credit or Earned Income Tax Credit (EITC). 

If your taxes are more complicated (e.g., you have capital gains, won’t be taking the standard deduction, have self-employment income to report, etc.) you can upgrade to one of TaxAct’s paid filing options and pay only when you file.

Why choose TaxAct as your online tax preparer?

• Access to Xpert Assist^TM – We know taxes can be confusing, so we have credentialed tax experts on hand who can help answer questions you may have when filing.²
• Step-by-step guidance – Our tax preparation software asks you simple questions and fills out the necessary tax forms for you as you work through our product.
• Prior year importing – This feature lets you upload a PDF of last year’s 1040 tax return, saving time and reducing errors such as typos.³
• ProTips – Throughout the filing process, you’ll get quick, easy-to-digest bits of information that help improve your tax outcome and financial wellness. These tips can help you save by uncovering potential tax deductions and tax credits you may have overlooked.
• Easy state filing – We’ll automatically pull your federal information into your state tax forms for super quick state filing.⁴
• Real-time refund estimate – As you file and enter more information, you’ll be able to see your tax refund amount (or taxes due) update in real-time.
• Maximum Refund and 100k Accuracy Guarantee – We’re so confident that our calculations are correct and that you’ll get your maximum tax refund that we’ll pay up to $100,000 to cover you if we make a mistake.⁵
• Alerts – Before submitting your return, our software flags any potential errors or omissions before you file. Our Deduction Maximizer⁶ will also alert you to possible tax breaks you may have missed.

What are the steps to file my basic federal tax return for free with TaxAct?

No fuss filing is something we take seriously. We’ve streamlined our tax software to make electronic filing a breeze.

To file your basic federal tax return for free this year, follow these simple steps:

1. Create an account with TaxAct or log in to your account if you already have one.
2. Import last year’s income tax return information or enter your information manually³.
3. Fill out your basic information, including your name, address, Social Security number or taxpayer identification number, birthday, marital status, dependent information, and more.
4. Follow our step-by-step guidance. We’ll begin by asking you questions about your income, and then we’ll continue into tax deductions, credits, other taxes paid, and more. If your tax situation is not basic, you will be presented an opportunity to upgrade to another offering; you can continue preparing your taxes and only pay when you file.
5. File your state income tax return. If you live in a state with income tax, we’ll help walk you through your state tax return next. We’ll use the information you provided in your free federal tax return to make this process quick and easy. Filing your state return is an additional cost, as we do not offer free state filing at this time.
6. Review your return. Once you’re through your federal and state returns, our software will review your return for accuracy. This is where we’ll alert you to any potential errors, omissions, or additional tax-saving opportunities.
7. Pay your tax bill or tell us how you want your tax refund. After your review, you’ll be given the option to e-file or print and mail your paper return. We’ll also ask you for payment information (if you owe taxes) or direct deposit bank account information (if you’re owed a tax refund). If your tax situation is not basic or you’re filing a state income tax return with us, we’ll ask for your payment information here as well.
8. Submit your return. Once you’ve gone through all the above steps, it’s time to submit your return to the IRS for processing!

The bottom line

TaxAct makes free online tax preparation easy when you file your basic federal tax return with us. We’ll guide you step-by-step through filing your individual income tax return for free if you meet certain eligibility requirements based on your income and deductions.

Ready to file? Let’s get started.

This article is for informational purposes only and not legal or financial advice.

All TaxAct offers, products and services are subject to applicable terms and conditions.

¹ Not everyone has a basic return. Find out if you have a basic return and more about what this year’s Free Edition includes. For all other online products, you can start free and pay only when you file. This means you will not be charged if you decide to stop using any product prior to printing or e-filing.

You can file for free yourself with TaxAct’s Free Edition if you meet the qualifications below, including filing using IRS Form 1040 only without having to attach any forms or schedules. Only certain taxpayers are eligible.

Situations covered (assuming no added tax complexity):

• W-2 income, Unemployment income, Retirement income
• Earned Income Tax Credit, Child Tax Credit
• Dependents
• Current Students
• Student loan interest

Situations not covered:

• Investment income: Stock, interest, dividends, crypto, or capital gains/losses
• Sale of home, real estate taxes, mortgage interest, or rental property income
• Royalty, trusts, and foreign accounts
• Business and farm income
• Itemized deductions
• Adoption credits and child and dependent care
• Health Savings Account (HSA)
• Freelance, contractor, side hustle, or self-employed income and expenses

About 44% of users qualify.

² Tax Experts are available with TaxAct® Xpert Assist®, which encompasses a suite of services designed to provide varying levels of support and assistance for your tax filing needs. These services are available at an additional cost and are subject to limitations and restrictions. Service availability, features, and pricing may vary and are subject to change without notice. For more details, read full terms.

³ TaxAct can import the data you filed last year with us or your return from PDF files of 1040 returns prepared by many but not all tax prep software solutions.

⁴ State filings are an additional charge.

⁵ Read more about the TaxAct Maximum Refund and $100k Accuracy Guarantees.

⁶ TaxAct’s Deduction Maximizer guides you step by step through the process of completing your return in a way that helps you uncover additional tax advantages and helps you maximize your deductions by checking dozens of additional deductions we know from experience folks don’t think to look for. Each deduction you claim may reduce the amount of tax you owe, resulting in a lower IRS bill overall.