You may qualify for free tax filing if you fall within these situations
(BPT) - For many people, filing their taxes is something they put off and don't understand. In fact, according to a recent TurboTax survey, two in five Americans don't fully understand what's in the new tax bill and more than one-third worry they'll be worse off. Despite apprehension surrounding the new tax bill, filers could see up to a $1,000 refund increase or lower balance due, so there is no reason to delay filing.*
Plus, filing your taxes doesn't have to be complicated and you may be able to file your taxes absolutely free when you use TurboTax Free Edition. About 37% of filers qualify. If you have a simple tax situation, meaning you file Form 1040 only (no schedules, except EITC, CTC, student loan interest, and the new schedule 1A) you can qualify. While some services create the perception that they are free, they don't actually provide completely free federal and state returns, creating confusion for taxpayers. TurboTax Free Edition is absolutely free federal and free state DIY filing for those who qualify.
All you'll need to do is gather your documents, answer a few questions, and TurboTax will do the rest to get you your max refund you're eligible for.
Not sure if you qualify? Check out what qualifies as a simple tax return for TurboTax Free Edition below assuming you don't have other tax situations, saving you time, money and stress.
W-2 income
If you have an employer or employers you will have income reported on Form W-2.
By Jan. 31 (or the next business day if this falls on a weekend) your employer should have sent your W-2 income form. This form contains your earnings, tax withholding, benefits and other important tax information. With TurboTax Free Edition there are no W-2 income limits.
You can snap a photo of your W-2 to jump start your taxes and your information will be imported to the right tax forms. TurboTax also partners with hundreds of payroll providers and financial institutions allowing you to import your W-2 information directly from your payroll provider, eliminating manual entry and streamlining doing your taxes.
Interest, dividends or original issue discounts
If you received interest or dividend income or original issue discounts reported on Forms 1099-INT, 1099-DIV and/or 1099-OID, the income reported on these forms is covered by TurboTax Free Edition as long as these forms don't also require filing a Schedule B.
You may receive these forms if:
- A bank, financial institution or other entity pays you at least $10 of interest.
- Investments like stocks or mutual funds paid you dividends.
- Certain types of bonds that were issued at a price less than the value you can redeem them for once the bond matures.
Standard deduction
Filers with a simple form 1040-only who claim the standard deduction can file using TurboTax Free Edition. In fact, about 90% of filers claim the standard deduction instead of claiming itemized deductions which are deductions like home mortgage interest, property taxes, and state and local taxes. For tax year 2025 the standard deduction is $15,750 single, $23,625 head of household, and $31,500 married filing jointly. The standard deduction is a specific dollar amount that can be deducted that reduces taxable income. Each year, the standard deduction amount typically goes up to keep pace with inflation and varies according to your filing status. There are also additional standard deduction amounts for age 65 and over and/or blindness.
Earned Income Tax Credit
The Earned Income Tax Credit (EITC) is a credit for people who work and earn low-to-moderate income. You may qualify for the EITC with:
- Earned income up to $68,675 and you file married, filing jointly.
- Earned income up to $61,555 and you file single, a qualifying surviving spouse or head of household.
Beyond income and filing status, whether you have kids and how many kids you have impact how much of a credit you can get. EITC can be a substantial credit. A family with 3 or more kids can get a credit up to $8,046 depending on income.
Child Tax Credit
Certain families with children under 17 may qualify for the Child Tax Credit (CTC). For tax year 2025, you could receive a credit of up to $2,200 for each dependent child under 17.
Student loan interest deduction
If you're a student who paid student loan interest, you can deduct up to $2,000 in student loan interest if you otherwise qualify for TurboTax Free Edition. You can even claim the deduction if your parents paid your student loans for you as long as your parents don't claim you as a dependent.
Tips, overtime pay, car loan interest and senior deduction
Under the One Big Beautiful Bill, new deductions were passed and a new schedule, Schedule 1-A, was developed where you claim the new deductions. TurboTax Free Edition covers schedule 1-A and allows you to claim the new deductions. You may qualify if you:
- Received qualified tips
- Earned qualified overtime pay
- Took out a loan to purchase a car for personal use assembled in the U.S.
- Are a senior 65 years old or over
When filing with TurboTax, you will be asked simple questions to determine if you qualify for the new deductions, schedule 1-A will automatically be filled out, and you will get the deductions you're eligible for.
Taxable qualified retirement plan distributions
Did you receive a distribution of more than $10 from a retirement plan? If so, you should have received a Form 1099-R which indicates your distribution, taxable amount, and any taxes withheld from IRAs, pensions, annuities, or insurance contracts.
Income tax on most retirement plan contributions is deferred. This means you won't pay taxes on the amount you put into the fund until you withdraw from the account.
Some retirement plan distributions that you may not be taxed on include:
- Rollovers
- Loans
- Exceptions for early distributions
- Qualified withdrawals from Roth IRAs
Are you ready to file for absolutely free?
If your taxes fit into the above mentioned situations with no other complexity or forms, you can easily and accurately file both your federal and state taxes absolutely free with TurboTax Free Edition. If you qualify and haven't filed yet, there is no reason to delay getting closer to your maximum refund for free. You can file up to 11:59 p.m. on the April 15 deadline and meet the tax deadline.
*According to a recent study from Piper Sandler.
Source: BrandPoint
