3 Ways to File Your State Taxes for Free
In the 41 states where state income tax is collected, you must file a state tax return along with your federal tax return.
The good news is, if you use tax software to prepare your federal return, you can use the software to file your state return as well. The bad news is, it's often expensive to file your state taxes this way—costing up to $40 per state—even if you used free tax software for your federal return.
However, there are a few ways to save on fees when filing state taxes.
The first is to file state taxes directly through your state's website. If that's not an option, you may be able to file through the IRS Free File Alliance, a group of tax software vendors that have agreed to make their services available for free to qualified taxpayers. Finally, you may be able to file your state taxes for free using tax software providers that offer discounts to active-duty U.S. military or taxpayers with simple returns.
Go Straight to the State
Many states offer a way to file taxes directly through their state website or e-file system. Alabama, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Indiana, Kansas, Louisiana, Maine, Maryland, Massachusetts, Nebraska, New Jersey, New Mexico, North Carolina, Ohio, Oklahoma, Pennsylvania, Utah, and Wisconsin offer some way for qualified residents to file through the state.
Residents of the remaining states and Washington, D.C. may be able to file for free via state-provided fillable forms or through their state's partnership with the Free File Alliance (see below).
Use IRS Free File
The Free File Alliance is a partnership between states and tax software vendors that allows for free e-filing of federal taxes. It allows for e-filing state taxes, too, although a fee may apply.
Not everyone qualifies for IRS Free File. According to the IRS, you can use Free File software if your adjusted gross income (AGI) is $66,000 or less. If your AGI is more than that, you can use Free File Fillable Forms.
Also, while the federal return is free under this program, state returns may not be, although they could be offered at a reduced price.
According to the IRS, the Free File partner vendors will provide free state tax return services to the following states:
- District of Columbia
- North Carolina
- North Dakota
- New York
- Rhode Island
- South Carolina
- West Virginia
Get a Discount on Software
Tax software providers may offer free state filing for U.S. military members and reservists or for taxpayers with very simple returns.
Certain conditions may apply for a taxpayer to receive free tax filing. For example, Tax Slayer has free options for both state and federal returns, but only for 1040 returns that claim only the standard deduction (that means no itemizations), Earned Income Tax Credit, and Child Tax Credit.
Turbo Tax also permits free state tax filing for simple returns that file W-2 income and only the standard deduction (no itemizing), Earned Income Tax Credit, and Child Tax Credit.
H&R Block permits free state tax filing for taxpayers with an AGI of $66,000 or less and who are active-duty military, between the ages of 17-51, or qualify for the Earned Income Tax Credit.
Although your state may offer free e-filing directly, these services may be a convenient option, especially since the software will automatically populate your state form with data from your federal form, saving you time.
Finally, services such as Credit Karma Tax offer free state filing without a minimum AGI requirement. However, not all states permit Credit Karma Tax as an authorized e-filing vendor.