For the 2025 filing season, Oregonians now have more alternatives for free online tax preparation.
Some may be eligible for the IRS Free File program, which is a collaboration with online tax preparation firms that provide low- or moderate-income filers with free use of their software.
For the first time this year, Oregonians of all income levels can utilize IRS Direct File, the IRS’s free program, although it is unable to handle certain typical tax scenarios.
Here are some of your choices:
IRS Free File
In reality, the IRS’s initial free tax filing program was a collaboration with the Free File Alliance, a collection of tax preparation firms that, under specific guidelines, provide their services for free.
The IRS promised not to develop its own tax software, which is how the initiative got its start. Since then, it has done just that (more on that in a moment). However, eight cooperating providers continue to offer free filing without any upsells.
Filers earning up to $84,000 in adjusted gross income are eligible to get offers this year.
This program does not include all free tax preparation offers. Start at the IRS website: irs.gov/freefile to prevent a price increase when things grow complicated.
IRS Direct File
The IRS tested its own tax preparation tool in a few areas last year. It’s growing to 25 this year, including Oregon.
There is no income cap for IRS Direct File. In many situations, the agency can import your income for you because it already possesses W-2 salary and withholding forms that businesses have filed.
However, there are restrictions. It cannot be used if you have:
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received cash tips or alimony not reported on a tax form.
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worked as a contractor or gig worker with income reported on a Form 1099-NEC.
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received distributions from a retirement plan, or if you ve contributed to an individual retirement account, or IRA.
Visit directfile.irs.gov to begin a return and determine your eligibility.
What about the free versions of H&R Block, TurboTax and other providers?
Both of the major online tax preparation companies, H&R Block and TurboTax, have withdrawn from the IRS Free File program.
Only taxpayers with the most basic returns—those without itemized deductions, student loan interest, Health Savings Accounts, or stock sales—are eligible for the free versions of their online tax preparation software that they still provide.
On the other hand, as long as the filer satisfies the eligibility requirements, IRS Free File programs cover almost every tax scenario.
You may be eligible for a free return and a seamless experience if you use the free version provided by tax preparation firms. However, don’t be shocked if you are requested to pay up if your return becomes more problematic.
Additionally, some, such as TaxAct and FreeTaxUSA, charge for state taxes but provide a free tier for federal returns.
Don t forget Oregon state taxes
Take Oregon tax filing into consideration before determining how to submit your federal return.
For individuals who qualify, at least four tax preparation firms that are part of the IRS Free File program also provide free Oregon income tax return filing.
If you have filed in Oregon during the last three years, the IRS Direct File program is connected to the state’s direct file program to make the process of filing a state return comparatively easier.
Additionally, there are no financial restrictions and the Oregon Direct File service is free. Certain types of filers are not supported, such as nonresidents who file a 1040-NR form for their federal taxes or those who spent at least a portion of the year outside of Oregon.
Free tax help in Oregon
In Oregon, a number of charitable groups provide free tax preparation services.
AARP Tax-Aide
Free tax preparation help from the AARP Foundation is available to everyone, but it is primarily targeted at seniors with low to moderate incomes. Locate a place 888-227-7669 or visit attaxaide.aarpfoundation.org.
Volunteer Income Tax Assistance (VITA)
Those who earn $67,000 or less, have a disability, or speak limited English are eligible for this IRS program. Visit irs.treasury.gov/freetaxprep to find locations.
MFS CASH Oregon
As a division of the charity Metropolitan Family Service, this Oregon tax preparation aid service provides virtual assistance to Oregonians worldwide as well as in-person assistance in Portland and Eugene. Families and individuals earning $67,000 or less annually are eligible. Call 503-243-7765 or visit cashoregon.org to schedule an appointment.
MyFreeTaxes
For those who earn less than $84,000, this United Way service provides tax preparation assistance; for those who earn less than $67,000, it will prepare returns. Visit myfreetaxes.com or give 866-698-9435 a call to get started.
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For The Oregonian/OregonLive, Elliot Njusedits writes about business and economic news. You may contact him at [email protected].
