Who Qualifies for TurboTax Free Edition?

TurboTax, a leading tax preparation software, offers a free edition for taxpayers who meet specific eligibility criteria. This free service allows individuals to file their taxes without incurring any fees. Understanding the eligibility requirements is crucial for taxpayers seeking a cost-effective tax filing solution.

Eligibility Criteria

To qualify for TurboTax Free Edition, taxpayers must meet the following criteria:

• Simple Tax Return: The tax return must be filed using IRS Form 1040 only, without the need to attach additional forms or schedules (with the exception of specific covered situations).

Covered Situations

The following situations are covered under TurboTax Free Edition:

• W-2 income
• Interest or dividends (1099-INT/1099-DIV) that do not require filing a Schedule B
• IRS standard deduction
• Earned Income Tax Credit (EITC)
• Child Tax Credit (CTC)
• Student loan interest deduction

Situations Not Covered

The following situations are not covered under TurboTax Free Edition and may require a paid version of the software:

• Itemized deductions claimed on Schedule A
• Unemployment income reported on a 1099-G
• Business or 1099-NEC income
• Stock sales (including crypto investments)
• Rental property income
• Credits, deductions, and income reported on other forms or schedules

Percentage of Taxpayers Eligible

Approximately 37% of taxpayers are eligible for TurboTax Free Edition. This percentage represents a significant portion of taxpayers who can benefit from free tax filing services.

Additional Considerations

It’s important to note that TurboTax Free Edition is available for the entire tax year. However, if taxpayers require assistance from a tax expert through TurboTax Live Assisted Basic, they must file by March 31st. After this date, the basic service incurs a fee.

Alternative Free Tax Filing Options

For taxpayers who do not qualify for TurboTax Free Edition or prefer alternative options, several other free tax filing services are available. The IRS Free File program offers free guided tax preparation for taxpayers earning up to $79,000. Additionally, the IRS has launched a pilot program called Direct File, which provides free tax filing services to eligible taxpayers in select states.

TurboTax Free Edition offers a convenient and cost-effective solution for taxpayers with simple tax returns. By understanding the eligibility criteria and covered situations, taxpayers can determine if they qualify for this free service. Alternative free tax filing options are also available for those who do not meet the eligibility requirements.