E-filing? Here are the 5 Cheapest E-File Options for 2025 (Some are Even Free)
This article has been updated to reflect the 5 cheapest e-file tax prep options for the 2025 tax filing season (for 2024 tax year returns). I’ve been DIY e-filing my tax returns for over 20 years now. Fortunately, there are many free and cheap e-filing options for taxpayers to choose from. TurboTax & H&R Block are probably the 2 most-well known DIY e-filing programs, and both companies have have free or cheap filing options available for taxpayers with relatively simple tax returns, but neither participates in the IRS Free File Alliance for lower income taxpayers that fall within specified age and adjusted gross income ranges ($84,000 or less).
There are other reputable alternatives as well. After researching the marketplace and testing various tax filing programs, I’ve settled on a handful of recommended products that should top your list if your goal is to have the cheapest e-file tax return. This site has affiliate partnerships with every major tax prep service & the links below lead to the best available discounts for their products.
H&R Block: offers a basic free federal and state version called “H&R Block Free Online” that has no income or age restrictions, covering simple Form 1040 returns. If you start with the Free Online version, you can easily transfer and upgrade to a different version at a later time if you have additional forms in your return (note: your return must be started on their website to do so). I have used H&R Block in the past, and it’s a quality program. If you need more than a simple return, H&R Block is offering an additional 20% off their paid online versions (“Deluxe”, “Premium”, & “Self-Employed”) to readers for a limited time at that link.
TurboTax: offers a basic free federal and state e-file version called “TurboTax Free Edition“ and ~37% of taxpayers qualify, simple Form 1040 returns only (no schedules except for Earned Income Tax Credit, Child Tax Credit and Student Loan Interest). If you choose to upgrade to another version, your data is transferred if you start your return on the TurboTax website. Right now, readers can get an additional 10% off TurboTax’s discounted paid online versions.
Cash App Taxes: Cash App Taxes, formerly “Credit Karma Tax” and now a division of Square/Block Inc., offers free federal and state e-filing, with just a few limitations. Cash App Taxes is a great low-cost option for most tax filers.
TaxSlayer: “TaxSlayer Simply Free” offers free basic federal and state e-file returns, covering simple Form 1040 returns. You can also get an additional 20% discount on TaxSlayer’s cheapest paid versions (“Classic”, “Premium”, and “Self-Employed”) for a limited time.
TaxAct: “TaxAct Free” offers a free-file for basic 1040 federal returns (note that adding a state filing now costs $39.99 per state for all versions, including “Free”). You can upgrade to another version, if you start your return on their site. If you have more than a basic return, you can get an extra 20% off the lowest price on TaxAct’s paid versions (“Deluxe”, “Premier”, and “Self-Employed”) for a limited time.
U.S. Military & Direct IRS Free E-File Options:
We’ve covered the cheapest e-file options that are suitable for most taxpayers above, but there are some additional e-file options available to members of the military, lower income households, and those willing to put in some additional work:
- MilTax: members of the U.S. Military are eligible for the U.S. Department of Defense’s MilTax software, available through Military OneSource for no charge.
- Fillable Forms: If your income is above $84,000 (as well as below), and you are up for some work and have plenty of time, you can fill out forms online through the IRS Free File Fillable Forms website and then e-file directly with them. The big problem with this route is that you can’t prepare or submit your state return through the IRS. This is a big pain because you have to go elsewhere to do your state return – often at a cost – aside from a few of the options noted above. Additionally, all information you enter is purged every November, meaning that it does not carry over from one tax filing to the next year’s filing. Also, fillable forms are not nearly as simple to fill out as tax software. You literally are filling out IRS tax forms. I would not recommend it – but it is an option available to you for free e-filing.
- IRS Direct File: the IRS has launched and expanded a limited pilot tax prep service that has expanded to taxpayers in 25 states for basic returns. IRS Direct File has a number of form limitations (e.g. doesn’t cover taxpayers who have IRA or MSA contributions, a long list of tax credits, itemized deductions, tips, gig economy, rental or business income, etc.). And, unfortunately, Direct File doesn’t prepare state returns, so you would have to prepare a state return elsewhere (which kind of defeats the purpose), if your state requires income tax filing.
- Free File: if your AGI is $84,000 or less and your age falls within certain ranges, and you live within certain states, there are “Free File” options for federal returns (note: only 2 of the 8 programs advertise free state e-filing. I personally would not recommend going the Free File route versus the previously mentioned free and paid online programs above, which don’t come with the income and age restrictions and some don’t charge extra for state returns. Some of the Free File offers require an income far below $84,000 (e.g. 3 of the 8 require an income below $48,000) and some of the programs do not permit you to switch to an upgraded paid version later on, if needed, which means you may have to start over and re-enter all of your tax information a 2nd time. As noted earlier, H&R Block and TurboTax are no longer participating in the Free File Alliance. IRS Free File opened January 10th for the 2025 tax season.
Cheapest E-File Options Discussion:
- What’s the cheapest way that you’ve been able to file your taxes, while getting the best return?
- Have you done your taxes yet?
- How are you filing your taxes this year?