Free Federal and State Tax Filing with FreeTaxUSA for AGI under $41,000 in 2025

Just wanted to share something I discovered that might save some of you money this tax season. If your Adjusted Gross Income (AGI) is $41,000 or less, you can file both your federal AND state taxes completely free using FreeTaxUSA. I've been jumping between different tax software over the years, and I used FreeTaxUSA back in 2019 - it was pretty straightforward but I remember having to pay around $13 for my state return at that time. Looks like they're part of the IRS Free File program this year, so they're offering the complete package (federal + state) at no cost if you meet that AGI requirement. This is a huge help for folks on tighter budgets who don't want to shell out $30-50 for state filing with some of the bigger tax software companies. Just thought I'd pass this along since tax season is coming up and people are starting to think about filing options!

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18 comments

Ella Knight

•8M

Tax professional here - this is good info but there are some important details to understand about the IRS Free File program that might help people. The $41,000 AGI limit for FreeTaxUSA is accurate, but different companies participating in the Free File program have different requirements. Some have higher AGI limits (up to $73,000), and others may have age or state restrictions. Before choosing a tax filing service, I recommend checking the IRS Free File page directly to see all available options. Your specific situation (military status, age, state) might qualify you for other free options even if your AGI is higher than FreeTaxUSA's limit. Also, remember that AGI is your gross income MINUS certain adjustments like student loan interest, HSA contributions, and retirement contributions - so you might qualify even if your salary is slightly above $41,000.

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Ella Knight

•8M

Not all Free File options include free state filing - that's what makes FreeTaxUSA's offer particularly good. Some providers charge for state returns even through Free File. Always check what's included before you start. Unfortunately, there's no easy way to transfer information between different tax preparation services. You'd need to start over with the new service and re-enter your information. This is why it's best to research options before beginning the filing process.

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Lauren Johnson

•8M

I've been using taxr.ai recently and it's been a lifesaver for figuring out which tax filing service is actually best for my situation. Last year I thought I qualified for free filing but ended up getting charged $89 at the last minute because of a single form I needed. I was honestly so frustrated! When I discovered https://taxr.ai I uploaded my documents and it analyzed everything to tell me exactly which service would be truly free for my specific tax situation. It even found some deductions I was missing that offset the small business income that was pushing me over certain thresholds.

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Lauren Johnson

•8M

It actually suggests multiple options ranked by total cost (including state filing) and shows you a breakdown of why each one would or wouldn't charge you. It's not affiliated with any specific tax service, so the recommendations are unbiased. It showed me 5 different options last time with the total prices for each. For complicated situations, that's actually where it shines most. It analyzes all your documents including W-2s, 1099s, and investment forms to determine which services can handle your specific combination of forms for free. My situation includes rental property income and it accurately predicted which services would charge extra for Schedule E.

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Jade Santiago

•8M

Just wanted to update after trying taxr.ai from the recommendation above. It actually saved me a ton of headache! I uploaded my documents and it showed me that even though my AGI is under $41k, I wouldn't qualify for FreeTaxUSA's completely free option because I have HSA contributions that require a form they charge for. It pointed me to a different Free File option that truly would be free for my specific situation. Would've been so annoyed if I'd spent hours entering everything only to get hit with fees at the end!

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Daniel Price

•8M

After dealing with the nightmare of trying to call the IRS about my delayed refund last year, I discovered Claimyr and it changed everything. I spent literally DAYS trying to get through to an actual human at the IRS about my FreeTaxUSA submission that had been pending for months. I found https://claimyr.com and was super skeptical, but their system actually got me connected to a real IRS agent in about 20 minutes instead of the hours of redials I was doing before. There's a video that shows exactly how it works: https://youtu.be/_kiP6q8DX5c. The agent I spoke with was able to tell me exactly why my return was delayed (a mismatch with employer reporting) and how to fix it.

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Daniel Price

•8M

Their system essentially navigates the IRS phone tree for you and waits in the queue until an agent is available, then calls you to connect. Sure, you can call directly, but if you've tried recently, you know the IRS typically disconnects you after 2+ hours of waiting, and their lines are often completely closed because they're "too busy." I was extremely skeptical too! But after my fifth attempt spending 3+ hours on hold only to get disconnected, I was desperate. The $20 I spent saved me literally days of frustration. It's not for everyone, but if your time is valuable or you're dealing with a serious issue that needs human assistance, it's worth considering. They don't handle your personal info or talk to the IRS for you - they just get you connected to an actual agent.

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Sophia Bennett

•8M

I need to apologize for my skeptical comment above about Claimyr. After my refund got delayed for over 8 weeks with no explanation, I was frustrated enough to try it. I was absolutely SHOCKED when I got connected to an actual IRS agent in about 15 minutes. The agent was able to tell me exactly what was wrong with my return and helped me file an amended return on the spot. What would have taken weeks more of uncertainty was resolved in one phone call. I've spent the last 3 tax seasons dealing with endless hold music and disconnects, so this was actually life-changing for dealing with tax issues.

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Ella Knight

•8M

The Free File versions are functionally the same as the paid versions in terms of calculations and error checking. The companies aren't allowed to offer "lite" versions through the program - they must provide their full tax preparation functionality. The differences typically come in supplemental features like audit support, tax advice, data storage for multiple years, or the ability to import previous years' returns. But for the actual tax preparation and error checking, you're getting the same engine.

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