Carmen Reinicke -
CNBC + Acorns
The tax return campaign is underway.
Most Americans should be able to file their 2021 tax returns with the IRS for free.
About 100 million Americans, or roughly 70% of US tax filers, are eligible to file their tax returns with the IRS at no cost, according to the agency.
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Even more Americans can file their 2021 tax returns for little or no cost through other tax preparation programs.
There are also other underutilized services that can help people this tax campaign, according to Tania Brown, an Atlanta-based certified financial planner and financial coach at SaverLife, a nonprofit focused on financial security.
“There are free options.
They don't necessarily have to pay to do their taxes,” she said.
Here's what you need to know about filing free taxes.
IRS Free File Program
Many Americans are eligible to file their taxes for free through the IRS Free File program, which is a public-private partnership between the agency and the Free File Alliance, a group of tax preparation companies with online software like TaxAct, FreeTaxUSA and others.
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In 2020, 4.2 million Americans used the Free File program for their 2019 taxes, according to the IRS.
Although that was an increase of almost 50% from the previous year, they could still use the program more.
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If your annual gross income in 2021 was less than or equal to $73,000, you can use one of the Free File software programs to file federal taxes at no cost.
Additionally, some products will also allow you to file your state taxes for free.
The software often includes step-by-step instructions and help for filers.
This year it may be especially important for Americans to use the service, as it will help them file electronically.
The IRS has recommended that people file online and receive any refund this year through direct deposit to avoid delays.
To use the program, you must go through the IRS website, not directly through a tax preparer.
The program opened on January 14.
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There are also free basic tax preparation services offered through the IRS Volunteer Income Tax Assistance and Tax Counseling for the Elderly programs, called VITA and TCE, respectively.
VITA and TCE target low-income filers, who typically earn $58,000 or less, people with disabilities, those who have difficulty speaking English, and those age 60 and older.
Tax experts volunteer their time to help eligible individuals prepare and file tax returns.
These options were usually held in person before the pandemic, but many will work differently this year.
Some sites have been closed due to the crisis, some will do the program online and some may be in person.
To find a VITA or TCE center, use the IRS locator tool.
What to do if you earned more than $73,000
If your annual gross income was more than $73,000 in 2021, there is another free program you can access through the IRS, but it requires you to do your taxes yourself.
The Free Fillable Forms program offers online tax forms that individuals can use to enter their information and then file electronically with the IRS or print and mail to the agency.
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Unlike other programs, Free Fillable Forms doesn't give you any guides or step-by-step instructions — it just does basic calculations for the numbers you put in the forms.
Also, it is only available for federal taxes, although people in certain states can access local programs to file their state returns.
A man fills out the US tax form by hand.pcess609 / Getty Images/iStockphoto
Still, if you have the time and are comfortable preparing your own taxes, the Free Fillable Forms program is a good option.
Other free services
There are also some private companies that offer free tax filing services, such as Intuit-owned TurboTax, H&R Block, TaxAct, and Credit Karma.
All of these companies have free filing options available to some, depending on their annual income, simplicity of return, where they live, military status, eligibility for certain credits, and more.
Before using online software outside of the IRS Free File program, check with the company to see if you're eligible to file for free and make sure you're using the correct product, rather than one that will charge you.
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Credit Karma is free to all filers, regardless of income, and includes federal and state returns, according to the company.
Customers also have access to support staff capable of answering any questions they have, Credit Karma noted.
When to pay for help
To be sure, some people may want to pay for help filing their taxes because they don't qualify for a free program or don't want to spend the time to do their own taxes.
There are many software programs online that help people file their taxes for a fee, and they have products that serve a wide range of tax scenarios at different prices.
If you have a more complicated return, for example if you itemize deductions, are a sole proprietor with income, or run a small business, you may want to get help through a software program or hire an accountant or other tax expert. to help you file your return.
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This year, filing a correct return is important to avoid delays in getting any refund due to you.
This article is part of the
Invest in You Ready series.
Set.
Grow
(Invest in you: Ready. Ready. Grow), an initiative of CNBC and Acorns, the micro-investing app.
NBC Universal and Comcast Ventures are investors in
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