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WalletPrep worksheet · Taxes

How can I file my taxes for free?

Name ____________________ Date __________

Key ideas

  1. Free File depends on your AGI. In the 2026 filing season, guided Free File software was free with AGI of $89,000 or less. Partners add rules.
  2. Always start at IRS.gov/freefile. Going straight to a company's website can land you in a paid product. The IRS link sends you to the free version.
  3. Fillable Forms are free at any income. Free File Fillable Forms are online IRS forms with basic math. They don't guide you and don't file state returns.

Vocabulary

Adjusted gross income
Your total income for the year minus a short list of adjustments, like deductible IRA contributions and student loan interest. Many tax rules and programs use it.
Earned Income Tax Credit
A refundable federal tax credit for workers with low to moderate earned income, larger for families with children.
Traditional IRA
An IRA where contributions may be tax-deductible now, and withdrawals in retirement are taxed as income.
Self-employment tax
Social Security and Medicare tax for people who work for themselves. It is 15.3% on 92.35% of net profit, on top of income tax.
Standard deduction
A flat amount the IRS lets you subtract from your income before tax is figured, if you do not itemize deductions.
IRA
Individual retirement account: a tax-advantaged retirement account you open yourself at a bank or brokerage, separate from your job.

Work it out

Jordan works as a medical assistant and earned $54,000 in wages. He also had $350 of bank interest and paid $1,100 of student loan interest. He wants to know if he qualifies.

  1. Wages (W-2)
  2. Bank interest
  3. Student loan interest
  4. Adjusted gross income
  5. Free File AGI limit
  6. Jordan's AGI
  7. Room under the limit

Check yourself

  1. Kim earned $70,000 in wages and $500 in interest, and deducted a $3,000 traditional IRA contribution. What is her AGI?

    • A. $73,500
    • B. $70,500
    • C. $67,500
    • D. $54,400

  2. Your AGI is above the Free File limit. Which free federal option is still open to you?

    • A. Free File Fillable Forms
    • B. Free File guided software
    • C. Any paid software marked free

  3. What is the safest way to reach the free version of a Free File partner's software?

    • A. Search for the company and click the first ad
    • B. Go to the company's home page
    • C. Start at IRS.gov/freefile and use the partner finder
    • D. Download last year's version

Your turn

Find last year's Form 1040 and write down the line labeled adjusted gross income. Then bookmark IRS.gov/freefile and the VITA site locator so you are ready when your forms arrive.

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Answer key

How can I file my taxes for free?

Work it out

  1. Wages (W-2)$54,000
  2. Bank interest$350
  3. Student loan interest− $1,100
  4. Adjusted gross income= $53,250
  5. Free File AGI limit$89,000
  6. Jordan's AGI− $53,250
  7. Room under the limit= $35,750
  1. Jordan adds his income: $54,000 + $350 = $54,350.
  2. Student loan interest is an adjustment, so he subtracts it: $54,350 − $1,100 = $53,250 of AGI.
  3. The Free File limit in that season was $89,000. $89,000 − $53,250 = $35,750, so he qualifies and starts at IRS.gov/freefile.

Check yourself

  1. C. $67,500 $70,000 + $500 = $70,500 of income. The IRA deduction is an adjustment: $70,500 − $3,000 = $67,500.
  2. A. Free File Fillable Forms Fillable Forms are free at any income. They don't guide you or file a state return.
  3. C. Start at IRS.gov/freefile and use the partner finder The IRS says you won't get Free File by going straight to a partner's commercial site. Start at IRS.gov.