By james art 
By Anna-Louise Jackson, Bankrate.com
It’s now the norm for Americans to file their taxes online — the IRS reports that more than 90 percent of individual tax returns were filed electronically in 2023, the most recent data available. Even most professional tax preparers are required to file returns electronically on behalf of their clients.
If you file your own taxes, you have several different options for filing online, ranging from a completely do-it-yourself, hands-on process to the targeted experience offered by most tax software companies.
How to file taxes online: 4 options
Most of us will file our taxes online no matter what, but there’s a benefit: filing online speeds up the time it takes to receive your refund. The IRS reports that more than 90% of tax refunds are sent within 21 days.
And the good news is that many taxpayers qualify for free online filing, including access to free tax software that guides you through the preparation of your tax return.
Here are four options to consider for e-filing your return.
1. IRS Forms to Complete
If you’re comfortable playing the role of an accountant, you can access forms to fill out on the IRS website and prepare your own taxes. All forms and associated worksheets include instructions to guide you through the process. Free forms will become available to complete 2024 tax returns. on January 27, 2025, which is the first day of the 2025 tax season. and the date the IRS begins accepting tax returns for 2024.
If you’ve ever filed your taxes by hand using the original paper forms, this is the online equivalent of the process. Depending on how simple or complex your tax situation is, completing these forms may be easy for you.
You’ll need to go through the steps to prepare your forms using your tax documents—for example, a W-2 from your employer showing your income and taxes withheld—and then file everything yourself on the IRS website. If you owe money, you can pay directly on the IRS website.
A major drawback of the IRS Fillable Forms program is that you cannot automatically transfer information from your federal tax return to a state tax return. The IRS does not support online filing of state tax returns with this option.
2. IRS Free File
The IRS offers another option to file your taxes online for free, but this time guided by tax software. With Free File, the IRS works with online tax preparation companies to help you complete and file online. You can choose one of the tax software companies that have partnered with the IRS and then navigate through simple questions to complete your return, with the calculations done by the online service.
As the name suggests, this tax filing option is free, but there are some catches you should be aware of:
— To qualify for free file, taxpayers must have an adjusted gross income (AGI) of $84,000 or less for the 2024 tax year. This applies to all filing statuses, including single filers and those who are married filing jointly.
—Some of the IRS’s trusted tax partners have additional requirements that taxpayers must meet to qualify for Free File, such as living in a specific US state.
—Some of the IRS software partners include a free state tax return, while others may require an additional fee for the state return.
Free filing is now open for the 2024 tax season. You must go through the IRS website when you start the process (don’t go directly to the tax software company’s website). On the IRS site, you can go to a page to review a range of tax software companies that are IRS partners, or you can use an easy tool to find an IRS partner that meets your specific tax needs.
3. IRS Direct File
In addition to Fillable Forms and Free File, the IRS now offers Direct File, which is essentially its own version of online tax preparation software.
Direct File launches for the 2024 tax season, when taxpayers file their 2023 tax returns, and people who have used the program at that time are enthusiastic, with about 90% of users saying their experience was excellent or above average, according to a survey of 11,000 Direct File users by the General Services Administration.
One benefit of using the Direct File program: You can get live support directly from the IRS via chat or phone if you have questions while completing your tax return. Plus, filing taxes with Direct File is completely free. And taxpayers in some states can automatically transfer their information from their federal return to their state return, saving a lot of time in the tax preparation process.
But there are also some drawbacks.
—Direct File processes only a few deductions and credits. For example, Direct File does not support claiming deductible IRA contributions.
— The program is only available in 25 states.
— For some of the participating states, you cannot easily transfer the information from your federal return to your state return. You will need to re-enter this information on your state return.
4. Tax software programs
Today’s tax software programs generally make preparing your taxes easy, mainly because many use a question-and-answer format that walks you through the process.
The amount you will spend to file your taxes online using IRS can vary greatly depending on the software and your particular tax situation. While tax software companies offer paid plans with more benefits, most of the big players also offer a version that allows users with simple tax returns to file federal taxes — and often even state returns — for free.
H&R Block, TurboTax and TaxSlayer are among the big players that offer free online versions of their popular software.
However, you must meet certain requirements to qualify, and the free versions are generally best for taxpayers who report basic W-2 income, take the standard deduction, and who claim only the most common credits, such as the capital gains tax credit income and child tax credit.
Because these free online tax options don’t cover all tax situations, you may need to upgrade to a paid version if your tax return is more complex—for example, if you’re a homeowner, self-employed, or small business owner, or you have other unique considerations.
If you’re going to pay to file your taxes with a tax preparation provider, be sure to compare and contrast several options to see what features each plan includes and how much each costs. Many tax software companies now offer enhanced features that range from expert help to audit assistance to money-back guarantees that your return is accurate. Since service levels are not always the same between providers, you’ll need to first assess which features are most important to you. Check out Bankrate’s top picks for the best tax software in 2025.
Documents required to file taxes online
Before you start filling out your tax return, gather all the necessary financial documents you need to submit. This includes any W-2 forms you received from employers you worked for in 2024, as well as any 1099 forms you received for working with clients as a self-employed person or for miscellaneous income you earned.
Other important tax forms you may receive include those showing interest earned on bank accounts (1099-INT), investment income (usually on 1099s), student loan interest paid (1098-E), mortgage statements for interest paid (1098) and information on contributions you made to an IRA (5498) or health savings account (8889). You could gather all the necessary documents for your tax return as you go through the e-filing process, but gathering this information early can save you time later.
Note that you don’t need to collect information about any charitable contributions you made in 2024 unless you plan to itemize your deductions. For the 2024 tax year, you must state if you want to deduct charitable contributions. These days, the vast majority of taxpayers choose to claim the standard deduction rather than itemize.
How to pay your taxes online
How you file your taxes online will dictate how you pay your taxes if your completed Form 1040 shows you owe money. If you file directly through the IRS, you can pay your taxes directly to the IRS online. The IRS allows taxpayers to make payments from their bank account or with a debit card, credit card or digital wallet, although processing fees apply to these options.
If you use an online tax service to prepare your taxes, after your forms are ready, you’ll receive instructions on how and where to send money to the IRS if you owe taxes. As with making a payment directly to the IRS, you may be charged additional fees if you pay by credit card.
You don’t have to pay your taxes online. Instead, you can send your tax payment to the IRS. You must make your check, money order, or cashier’s check payable to the U.S. Treasury and make sure it includes all the required information specified by the IRS.
How online filing affects your tax refund
After you submit your forms online, you will receive a notification from the IRS informing you that your return was received successfully or if an error occurred. If the IRS owes you a tax refund, you can check the status of your refund 24 hours after you file your electronic return. You can also choose to have the IRS direct deposit your refund directly into your bank account, which ensures you get the money faster. Or the IRS can mail you a check.
When to file e-taxes
The deadline to file your 2024 tax return is April 15, 2025. You can request an extension if you need more time, in which case you’ll have until October 15 to file your taxes. To qualify for an automatic six-month extension on your federal return, you must file Form 4868. If you don’t need the extra time because you have all the necessary documents, you can file your taxes online even before the due date. If you’re expecting a tax refund, this can be especially appealing.
How long your tax refund takes depends on a wide range of factors, but more than 90% of taxpayers receive their refund in less than 21 days.
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