The Internal Revenue Service has announced a major expansion of its Free File program, raising the income eligibility threshold to $100,000 for individuals and $150,000 for married couples filing jointly. The expansion makes an estimated 50 million additional taxpayers eligible for free tax preparation and e-filing services.
The move is expected to significantly reduce the market for paid tax preparation services, with shares of major tax software companies declining on the news. Consumer advocates have long argued that the complexity of the tax code should not require most Americans to pay for filing assistance.
The expanded program includes integration with state tax filing systems in 42 states, allowing eligible taxpayers to complete both federal and state returns through a single free platform.
