Oregonians have more options for free online tax prep for the 2025 filing season.

Some may qualify for the IRS Free File program, a partnership with online tax prep companies that offer use of their software for free for low- or moderate-income filers.

And Oregonians at all income levels can use the IRS’ own free software, IRS Direct File, for the first time this year — but it can’t handle some common tax situations.

Here’s a look at your options:

IRS Free File

The original free tax filing program from the IRS is actually a partnership with the Free File Alliance, a group of tax prep companies that offer their programs at no cost under certain conditions.

The program has its origins in an arrangement with the IRS, which agreed not to create its own tax software. It has since done exactly that (more on that in a minute). But there are still eight participating providers who promise free filing with no upsells along the way.

This year, offerings are available to filers with an adjusted gross income of up to $84,000.

Not all free tax prep offers are part of this program. To avoid a price hike when things get complicated, start at the IRS website: irs.gov/freefile.

IRS Direct File

Last year, the IRS tested its own tax prep program in a handful of states. This year it’s expanding to 25, including Oregon.

IRS Direct File has no income limit. The agency already has W-2 wage and withholding forms filed by employers, so in many cases it can import your income for you.

There are limitations, though. You can’t use it if you’ve:

• received cash tips or alimony not reported on a tax form.
• worked as a contractor or gig worker with income reported on a Form 1099-NEC.
• received distributions from a retirement plan, or if you’ve contributed to an individual retirement account, or IRA.

Check your eligibility and start a return at directfile.irs.gov.

What about the free versions of H&R Block, TurboTax and other providers?

H&R Block and TurboTax, the biggies in online tax prep, used to participate in the IRS Free File program, but both have dropped out.

They continue to offer free versions of their online tax preparation software, but only to taxpayers with the simplest returns — those without itemized deductions, student loan interest, Health Savings Accounts or stock sales.

IRS Free File programs, on the other hand, cover virtually all tax situations as long as the filer meets the eligibility restrictions.

The free version offered by tax-prep companies might well give you a free return and a smooth experience. But if your return takes a turn for the more complicated, don’t be surprised when you’re asked to pay up.

And some — like FreeTaxUSA and TaxAct — offer a free tier for federal returns but charge for state returns.

Don’t forget Oregon state taxes

Before you decide how to file your federal return, make sure to consider Oregon tax filing.

At least four tax prep companies participating in the IRS Free File program also offer free Oregon income tax return filing for those who qualify.

The IRS Direct File program is linked with Oregon’s own direct file program to facilitate a relatively painless state return — if you’ve filed in Oregon in the past three years.

And the Oregon Direct File program is free, without income restrictions. It doesn’t support certain kinds of filers, including those who lived outside Oregon for at least part of the year or nonresidents who file a 1040-NR form for their federal taxes.

Free tax help in Oregon

Several nonprofit organizations offer free tax prep assistance in Oregon.

AARP Tax-Aide

The AARP Foundation’s free tax prep assistance is focused on low- to moderate-income seniors but offered to anyone. Find a location at taxaide.aarpfoundation.org or call 888-227-7669.

Volunteer Income Tax Assistance (VITA)

This IRS program is open to people who make $67,000 or less, who have a disability or who speak limited English. Find locations at irs.treasury.gov/freetaxprep.

MFS CASH Oregon

This Oregon tax prep assistance program, part of the nonprofit Metropolitan Family Service, offers in-person help in Portland and Eugene and virtual help for Oregonians elsewhere. It’s open to families and individuals who make $67,000 a year or less. Make an appointment at cashoregon.org or call 503-243-7765.

MyFreeTaxes

This service from the United Way offers tax prep assistance for filers who make less than $84,000 or will prepare returns for filers whom make less than $67,000. Get started at myfreetaxes.com or call 866-698-9435.

— Elliot Njus edits business and economy news for The Oregonian/OregonLive. He can be reached at [email protected].