Free tax filing: IRS VITA, TCE and Free File

Tax season comes every year, and with it the “fast refund” ads that charge for something that can be free. This guide is for you if you want to file your tax returntax returnA tax return is the yearly form you use to report your income to the IRS and figure the tax you owe, so you can pay what is due or get a refund. The federal return for individuals is Form 1040. In general you must file if your gross income is above the minimum the IRS sets for your filing status, or if you had a certain amount of net earnings from self-employment; even when you do not have to, filing can pay off. You need your SSN or ITIN, and those of everyone else on the return, plus documents such as your W-2s and 1099s.See the full definitionClose without paying anyone: it explains the IRS’s three free routes (VITA, TCE and Free File), who can use them, what to bring to your appointment, how to apply for an ITINITIN (Individual Taxpayer Identification Number)An ITIN is a nine-digit number the IRS, the federal tax agency, issues to people who need a U.S. taxpayer identification number to file taxes and are not eligible for a Social Security number. It is for tax purposes only: it does not authorize you to work in the United States, does not qualify you for Social Security benefits or the Earned Income Tax Credit, and says nothing about your immigration status. You apply with Form W-7, and it expires if it goes unused for several years. Some lenders accept an ITIN for a mortgage.See the full definitionClose at a VITA site and what to do if your case is more complicated. All of it based on what the IRS says.

Or less, what the people many VITA sites serve generally make, according to the IRS

$70,244¹

The age group the TCE program mainly serves

60 and older¹

Of adjusted gross income or less, the limit for Free File's guided software

$95,000⁶

The IRS phone line to find a VITA or TCE site

800-906-9887¹

Three free ways to file

The IRS has two in-person programs and one online. The VITA (Volunteer Income Tax Assistance) and TCE (Tax Counseling for the Elderly) programs offer free basic tax return preparation to people who qualify.¹ Free File, on the other hand, lets you prepare and file your own federal return online at no cost, using software from companies that have an agreement with the IRS.⁶

Which one fits you? It depends on how much you want to do yourself. At VITAVITA (free tax preparation)VITA (Volunteer Income Tax Assistance) and TCE (Tax Counseling for the Elderly) are IRS programs that offer free basic tax return preparation by IRS-certified volunteers. They are meant for people with moderate income, people with disabilities and limited-English speakers; TCE focuses on people sixty and older. The IRS sets no program-wide income limit, but individual sites may set their own. Many sites serve in Spanish and help with ITIN applications and renewals. Filing taxes every year builds the record lenders ask for.See the full definitionClose or TCE, a certified volunteer prepares the return with you. With Free File, you enter the information and the software does the math. And at some VITA sites listed as “Self-Prep” there is a middle option: you prepare your own basic federal and state return with web-based software while a certified volunteer guides you.¹

The IRS's three free routes

A volunteer prepares it with you

VITA

• Free basic preparation for people who qualify.¹
• Many sites serve people who make about $70,244 or less, people with disabilities and limited English speakers.¹
• Some sites help you apply for an ITIN.⁴

For older adults

TCE

• Free help, mainly for people 60 and older.¹
• Specializes in pensions and retirement.¹
• Most of its sites are run by AARP Foundation Tax-Aide.¹

You prepare it online

Free File

• Guided software for an adjusted gross income of $95,000 or less.⁶
• Fillable Forms for any income, with no state return.⁶
• Always reached through IRS.gov/freefile.⁶

If you want someone certified to prepare it with you, look for a VITA or TCE site; if you are comfortable on a computer, Free File is free for the federal return.¹

VITA and TCE: who qualifies

The IRS does not set a program-wide income limit for VITA, but each site may set its own. The program generally focuses on people who meet the Earned Income Tax Credit (EITC) income guidelines. According to the IRS, many sites help:¹

• people who generally make about $70,244 or less;
• people with disabilities;
• people who speak limited English.

TCE offers the same free help, mainly to people 60 and older, and specializes in pension and retirement questions. Most TCE sites are run by the AARP Foundation’s Tax-Aide program; its locator works from January to April, and you can also call 888-227-7669.¹

Can I trust a volunteer? The IRS puts it this way: sites are run by IRS partners and staffed by volunteers, and everyone who prepares returns must take and pass tax law training that meets or exceeds IRS standards. That training includes maintaining the privacy and confidentiality of all your information. And the IRS requires a quality review of every return before it is filed.¹ If you worry about who sees your data, the guide on the IRS and the privacy of your tax data explains what the law says.

What a VITA site prepares and what it does not

IRS Publication 3676-B, the flyer you will see at many sites, lists what volunteers prepare. Among other things:²

• They prepare: wages and tips (Form W-2), interest, retirement income, self-employment income with a limited Schedule C (Forms 1099-NEC and 1099-K), the child tax credit, the earned income credit, the ITIN application (Form W-7) and, on a limited basis, prior-year and amended returns.
• They do not prepare: a Schedule C with a net loss, depreciation or business use of the home, or returns with casualty or disaster losses. For complicated returns, the flyer asks you to see a professional preparer.

Keep two things in mind. Hours and services may be limited, and by law some sites give priority to seniors, so you may have to wait.² Services also vary from site to site, depending on the certified volunteers each one has.¹ That is why it helps to call first and ask whether they prepare what you need.

If you are self-employed or are paid on a Form 1099Form 1099Form 1099 is a family of IRS information returns that report income other than employee wages. Anyone who paid you in the course of their business must file it with the IRS and send you a copy, on paper or electronically, early in the year. There are several types: 1099-NEC for freelance or contract work, 1099-K for payments by card or through online platforms, 1099-INT for bank interest, 1099-G for government payments such as unemployment, and 1099-MISC for other income. You use that information on your tax return.See the full definitionClose, bring your income and expense records. The guide Filing taxes with an ITIN explains when you have to file and why your returns matter when you apply for a mortgage.

If you have an ITIN or are applying for one

You can go to VITA with an ITIN too: the IRS list of what to bring asks for Social Security cards or ITIN documents for you, your spouse and your dependents.²

And if someone in your family does not have an ITIN yet, here is something few people know: at some VITA sites you can apply for one for free. Those sites have Certifying Acceptance AgentsCertifying Acceptance Agent (CAA)A Certifying Acceptance Agent (CAA) is a person or entity authorized by the IRS to help you apply for or renew an ITIN. A CAA helps you complete Form W-7, authenticates most of your identity documents and hands them back on the spot, instead of you mailing the originals, and then sends your application to the IRS. CAAs charge for their services, and fees vary. The IRS also offers free in-person options: its Taxpayer Assistance Centers with ITIN services and some VITA sites. The IRS publishes the list of approved agents.See the full definitionClose (CAAs), who can:⁴

• help you complete and review your Form W-7Form W-7Form W-7 is the IRS's official application to get an ITIN, or to renew one that has expired or is about to. It is filed together with a federal tax return, with some exceptions, and with original documents or certified copies that prove your identity and foreign status, such as a passport. You can mail it, bring it to an IRS center or go to a Certifying Acceptance Agent, who reviews the documents and returns them on the spot. It is free; be wary of anyone who charges to "get" you a fast ITIN.See the full definitionClose;
• authenticate most of your supporting documents;
• return your documents at the end of the appointment;
• mail your ITIN application package to the IRS;
• prepare your tax return for free, if you qualify.

There is a limit: agents at VITA sites cannot authenticate foreign military IDs or dependents’ documents other than passports and birth certificates. Those documents have to be mailed with the application. To use this service, you call the site for an appointment and bring your ITIN application package; if several family members are applying, each one has to come to the appointment with their own package. The IRS publishes the list of these sites by state.⁴ The guide how to get an ITIN with Form W-7 walks through the application.

Applying for an ITIN and filing at a VITA site

1. 1. Find a VITA site with ITIN services

   Before the season

   The IRS publishes the list of these sites by state.⁴

2. 2. Call for an appointment

   Ahead of time

   Sites with ITIN services work by appointment.⁴

3. 3. Gather each person's papers

   The week before

   The W-7, proof of foreign status and income papers.³

   Try it with your numbersDocument checklist

4. 4. Everyone applying for an ITIN goes

   Appointment day

   Each person applying for an ITIN brings their own package.⁴

5. 5. The agent reviews and authenticates

   At the appointment

   You get your documents back at the end; some dependents' documents are mailed.⁴

6. 6. The application and return go to the IRS

   At the end

   That first year, the return with the new ITIN is not e-filed.⁵

What to bring to your appointment

If you show up missing a paper, you may have to come back. This is the list the IRS publishes:³

• Original photo ID for you and for your spouse if you file jointly. The IRS accepts, for example, a driver’s license, a school or employer ID, a state or military ID, a national ID, a visa or a passport.
• Numbers for the whole family: Social Security cards for you, your spouse and your dependents, or the ITIN papers.² If you are applying for an ITIN, proof of your foreign status.
• Birth dates for everyone on the return.
• Income papers: Forms W-2Form W-2Form W-2 (Wage and Tax Statement) is the document your employer must prepare for each employee. It shows the wages you were paid and the taxes withheld from your pay, such as income tax and Social Security and Medicare taxes. The employer files it with the government and sends you a copy, on paper or electronically, in January or February so you can file your tax return. If it does not arrive or has errors, you first ask your employer to fix it; if you still do not get it, the IRS can help you obtain it.See the full definitionClose, W-2G, 1099-R and 1099-MISC from all employers, and your bank’s 1099 interest statements.
• Last year’s return, federal and state, if you have it.
• Your account for direct deposit: the routing and account numbers, for example on a blank check.
• Daycare: what you paid and the provider’s tax ID number.
• Form 1095-A, if you have Marketplace health insurance.

If you file jointly and the return is e-filed, both spouses have to come to sign.³ And if you are catching up on prior years, bring the IRS income transcripts for those years.² The glossary explains what a tax transcriptIRS tax transcriptAn IRS tax transcript is a free official summary of the information on your tax returns and tax account. It is not a photocopy of your return. There are several types: the tax return transcript shows most line items from your Form 1040 as filed and usually meets the needs of mortgage lenders; the tax account transcript shows changes made after you filed; the wage and income transcript shows what your W-2s and 1099s reported. You can get one through your IRS online account, by mail, by phone or with Form 4506-T.See the full definitionClose is.

Example with real numbers

A mixed-status family at its VITA appointment

An example in words of what a couple brings when one spouse has a Social Security number and the other is applying for an ITIN.

Photo ID

One for each, for example a license or a passport

Family numbers

His Social Security card and the children's

For her ITIN

Her W-7 and her proof of foreign status

Income

All of the year's W-2s and 1099s

Refund

A blank check for direct deposit

Who goes to the appointment

Both: each person applying for an ITIN goes, and both sign to e-file jointly

That is what the IRS list³ and the page on sites with ITIN services ask for.⁴ In the year her ITIN is assigned, that return is not e-filed.⁵

Run it with your numbersDocument checklist

How to find a site near you

VITA and TCE sites are generally at community centers, libraries, schools, shopping malls and other neighborhood locations. You find them with the IRS VITA Locator Tool or by calling 800-906-9887. The locator is updated regularly from February through April, so check again if you do not see a nearby site at first.¹

If you cannot go in person, the CFPB explains that you can also connect virtually with VITA providers around the country by signing up through GetYourRefund. And because some sites are open year-round and others close at the end of the season, it helps to check each site’s open dates, especially if you are filing late.⁷

Free File: filing your own return online

Free File is a partnership between the IRS and the Free File Alliance, a group of tax software companies. It has two options:⁶

• Guided tax software, for an adjusted gross income (AGI) of $95,000 or less. It asks simple questions, guarantees the math and is available in Spanish. To use it, the IRS says you must live in one of the states on its list and be 17 to 85 with that income, or be active-duty military. Each company also sets its own income, age and state criteria.
• Fillable Forms, for any income. You fill in the forms, the software does limited math and there is no state return.

The most important thing: always start at IRS.gov/freefile. If you go directly to a company’s commercial website, you do not get Free File. Within the program, the IRS prohibits upselling and hidden fees, and prohibits selling you bank products such as a refund anticipation loan. A company can charge you for a state return or if you do not qualify for a free federal return.⁶

To sign your e-filed return you use the AGI from last year’s return or your five-digit self-select PIN. If you have never filed, you can create a new PIN or enter “$0” as your AGI. And note: Free File only handles the current-year return, not past-due years.⁶

If you need more time: an extension with Form 4868 gives you until October 15 to file, and you can request it through Free File. But it is only for filing: to avoid penalties, pay what you owe by April 15.⁶

If your case is complicated or you already have a problem with the IRS

If the VITA site determines your return is out of scope, the IRS says you will be advised to seek a paid preparer. Anyone paid to prepare returns must have a preparer number (PTIN), sign your return, enter that number and give you a copy. Avoid anyone who charges a percentage of your refund or wants the refund deposited into their accounts, and never sign a blank form.⁸ The guide tax refunds, refund advances and scams explains how to spot a “ghost” preparer.

If you already have an audit, a collection letter or another dispute, a Low Income Taxpayer ClinicLow Income Taxpayer Clinic (LITC)A Low Income Taxpayer Clinic (LITC) is an organization that helps low-income people who have a dispute with the IRS, such as an audit, an appeal or a tax collection matter, for free or for a small fee. It can represent you before the IRS or in court. It also teaches taxpayer rights and responsibilities to people who speak English as a second language. To qualify, your income generally must be below a certain level. The clinics get part of their funding from the IRS but are independent of it.See the full definitionClose (LITC) can represent you before the IRS or in court, free or for a small fee. The amount in dispute is usually less than $50,000, they also educate people who speak English as a second language, and Publication 4134 lists them. They are completely independent of the IRS.⁹

If this is your situation

Your wife is applying for an ITIN

Look for a VITA site with ITIN services: they review the W-7, authenticate most documents and return them at the end of the appointment.⁴

You are 60 or older

TCE specializes in pensions and retirement; many of its sites are AARP Tax-Aide sites.¹

You are self-employed

VITA prepares a limited Schedule C, but not one with a net loss, depreciation or business use of the home.²

You prefer Spanish

Many VITA sites serve limited English speakers,¹ and Free File's guided software is available in Spanish.⁶

Mistakes that cost you money

• Mistake: Reaching Free File from a company's ad.

  Instead: Always start at IRS.gov/freefile; if you go straight to the commercial site, you do not get Free File.⁶

• Mistake: Arriving at VITA without everyone's papers.

  Instead: Bring photo ID, Social Security or ITIN numbers and birth dates for the whole family.³

• Mistake: Going alone when you file jointly.

  Instead: To e-file jointly, both spouses must be there to sign.³

• Mistake: Mailing original passports without asking first.

  Instead: At a VITA site with ITIN services, the agent authenticates most documents and gives them back.⁴

• Mistake: Waiting until April to look for a site.

  Instead: The locator is updated from February through April, and some sites close at the end of the season.⁷

• Mistake: Signing a blank return for a preparer.

  Instead: Never sign a blank form, and ask for your signed copy with the preparer's PTIN.⁸

What to do this week

1. Look for a VITA or TCE site with the IRS locator or at 800-906-9887, and write down its hours.¹
2. If someone in your family is applying for an ITIN, check the IRS list of VITA sites with ITIN services and call for an appointment.⁴
3. Start a folder with the papers on the IRS list: IDs, numbers, W-2s, 1099s and a blank check.³ The document checklist helps you organize them, and the Can I get the EITC or Child Tax Credit? tool shows which credits to go over at your appointment.
4. If you would rather do it yourself, check at IRS.gov/freefile whether you qualify for the guided software.⁶
5. Decide now how much of the refund you will save: the emergency fund guide and the family budget tool help you decide.