For years, I assumed paying to file taxes was just part of being an adult. You earn money, you file taxes, you pay some tax software company $100–$300 to do it. End of story.
This year, I filed both my federal and state tax returns for $0.
No tricks. No promo codes. No “free until the very last screen.”
And the more I looked into it, the more obvious it became:
Most people should never pay to file their taxes.
Why So Many People Think Filing Has to Cost Money
Tax software companies have done an excellent job convincing people that:
- “Free” only applies to the simplest possible tax returns
- Itemizing deductions automatically means upgrading to a paid plan
- State filing is always extra
- Anything involving credits, retirement accounts, or a mortgage is “too complicated”
Add in fear of making a mistake or getting audited, and people just swipe the card and move on.
But none of that is inherently true.
Who Should Never Pay to File Their Taxes
If your finances look anything like the list below, paying to file is usually unnecessary:
- You’re a W-2 employee (or married filing jointly with W-2 income)
- You receive interest or dividends (1099-INT / 1099-DIV)
- You claim the standard deduction or itemize
- You have:
- Mortgage interest
- Property taxes
- Charitable contributions
- You contribute to retirement accounts
- You claim common credits (child tax credit, education credits, etc.)
- You don’t run a business or have payroll obligations
Key point:
👉 Itemizing deductions does not mean you should be paying to file.
That misconception alone costs households hundreds of dollars every year.
IRS Free File: The Official “Free” Option Most People Miss
The IRS has an official program called IRS Free File.
It’s a partnership between the IRS and major tax software companies that allows eligible households to file federal taxes for free, and often state taxes as well.
Who Qualifies?
Eligibility changes slightly each year, but generally:
- Adjusted Gross Income under a certain threshold (around the high-$70k range, depending on the year)
- Simple to moderately complex returns
The Catch
You usually must start through the IRS Free File portal.
If you go directly to a company’s website, you may never see the free version — or you’ll be nudged into a paid upgrade.
IRS Free File is legit, government-backed, and underused.
What I Used Instead: Cash App Taxes
In my case, I used Cash App Taxes — and it stayed free the entire time.
Why Cash App Taxes Worked for Me
- Free federal filing
- Free state filing
- No income limits
- No surprise paywalls
- Supports:
- Itemized deductions
- Credits
- Retirement income
- Capital gains
Most importantly, it didn’t suddenly say, “Nice work! Now pay to finish.”
The interface was straightforward, walked me through each section, and didn’t assume I was clueless — or try to scare me into upgrading.
I filed, submitted, and that was it. Zero dollars.
“But My Taxes Aren’t That Simple…”
This is where nuance matters.
When Paying Might Make Sense
The biggest exception is business income, especially if you:
- Are self-employed or freelance
- Run a small business
- Have payroll, depreciation, inventory, or complex write-offs
- File in multiple states due to business activity
That’s where complexity can justify paying for help — or at least spending more time choosing the right software.
Even then, paying should be a deliberate choice, not an assumption.
The Real Cost of “Just Paying”
Let’s do some quick math.
If you pay:
- $150 per year
- For 30 working years
That’s $4,500 — just to file paperwork you were already required to submit.
That money could instead be:
- Part of an emergency fund
- Invested in a retirement account
- Used to offset rising living costs
Paying out of habit is still paying.
How to File for Free (Step-by-Step)
- Gather your tax forms (W-2s, 1099s, mortgage interest, etc.)
- Check whether you qualify for IRS Free File
- Try a truly free option like Cash App Taxes
- File federal and state
- Keep your money
Final Thought
If you’ve paid to file taxes in the past, you didn’t do anything wrong.
Most people were never told there was another option.
But filing taxes doesn’t have to be expensive, intimidating, or “for experts only.”
For the majority of households, it should be free — and it can be.
If this saves you money, share it with someone who’s still paying out of habit.
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