What does 'filing for free' mean?
Typically, 'free filing' means using IRS Free File or other free options that let you submit your federal return without a software fee. Some free options also cover state returns, but not always. Always confirm that the federal filing is truly free before you start paying for anything.
Is 25% too low, too high, or about right?
It's not obvious. If the goal is to help as many people as possible afford and complete tax returns, you would hope more filers use free options. However, 25% could reflect real barriers and remaining eligible people who still don't use free filing. Reasons include: lack of awareness, confusion about eligibility, perceived complexity, privacy concerns, or needs for more help with forms that aren't eligible for free filing.
What might increase the share?
- Better public awareness of Free File and where to find legitimate free options.
- Clearer eligibility rules and a smoother user experience so simple returns are easier to file for free.
- Free or low-cost options that cover state returns and common schedules, reducing the temptation to pay.
- Stronger assurances about privacy and security to build trust.
- Partnerships with employers, schools, and community groups to reach more filers.
Takeaway
The number should ideally be higher among eligible taxpayers, to cut costs and improve compliance. But real-world factors like awareness and complexity matter, so the 25% figure may reflect both opportunities and barriers.
Tip for you: If you want to check eligibility, visit IRS.gov/FreeFile or a reputable provider, gather your W-2s and other docs, and compare options before paying.