The IRS Free File program is now open and offers free tax prep software that can benefit about 75% of American taxpayers.
Free tax filing options from the IRS Free File program
There are two routes you can go here through the IRS Free File program:
Income below $64,000: Free File software
- File your taxes with free, easy to use software
- Free state return options are available
- Use the Free File Software Lookup Tool to find free federal and
free state return options
Income above $64,000: Free File fillable forms
- Must know how to do your taxes yourself
- Does math; offers only basic guidance
- You must have your 2015 tax return
- State tax prep is not available
- E-file a free extension
Other new free tax filing options for 2017
There’s a new way this year to get your taxes done for free and your income won’t matter…
Credit Karma — which is a totally free service that makes money by recommending credit cards and loans that they believe would be suitable for you — is branching out into totally free tax preparation.
Unlike the IRS Free File program, Credit Karma’s free tax prep program will be open to all for free federal and state e-filing regardless of income.
While the company is supporting a dizzying array of tax forms, there are some limitations to the Credit Karma free tax product for the time being. Credit Karma does not support:
- Filing multiple state or non-resident state returns
- State filings without a federal return
- Non-resident federal filing – 1040NR (non-resident tax return)
- Foreign earned income credit
- Non-dependent earned income credit
- Married filing separately (MFS) in common law states
- Estate and Trust income from K1 forms
How does CreditKarma make money?
‘Our mission is to make financial progress possible for everyone. By understanding your credit and your taxes, Credit Karma can better assist you with your finances,’ CEO Ken Lin writes online.
‘We can monitor your finances, help you make good financial decisions and suggest better credit cards, loans and insurance products. If you like a recommendation and get approved for a product through Credit Karma, we usually get paid.’
But you can’t use CreditKarma if you have a credit freeze in place
If you’ve followed our advice here on Clark.com and frozen your credit, you won’t be able to sign up for a new CreditKarma account to take advantage of their free tax filing offer.
In order to do so, you’ll have to temporarily thaw your credit and then sign up.