How Much Does It Cost to File U.S. Individual Tax Return Yourself?

Filing individual income tax returns in the United States can involve various costs, depending on the method chosen by taxpayers. While some individuals opt for free resources provided by the government or third-party organizations, others may need to pay for professional assistance or software to ensure their tax filings are accurate and compliant with current regulations.

For those who prefer to file their taxes independently, there are several options available that range from free to paid services. The Internal Revenue Service IRS offers Free File, a program that allows eligible taxpayers to use brand-name software to prepare and e-file their federal tax returns at no cost. This service is typically available to individuals with an adjusted gross income AGI below a certain threshold, which varies each year. For example, during the 2024 tax season, the AGI limit for Free File was $73,000. However, it's important to note that while the software itself is free, users might still incur costs if they choose to print or mail paper returns instead of e-filing.

On the other hand, taxpayers who do not qualify for Free File can explore commercial tax preparation software like TurboTax or H&R Block. These platforms often provide a basic version of their services free of charge but charge fees for more complex tax situations or additional features such as state tax filing. According to recent reports, the average price for federal tax preparation using popular software ranges from $40 to $70, while adding state tax filing usually adds another $30 to $50. Some users also take advantage of premium support plans, which can increase the overall cost further.

For those seeking professional help, the expenses can be significantly higher. Hiring a certified public accountant CPA, enrolled agent, or tax preparer typically involves paying hourly rates or flat fees based on the complexity of the return. News articles suggest that the average fee for preparing a simple federal tax return is approximately $176, while more complicated cases involving multiple sources of income, deductions, or credits can exceed $300. Additionally, some professionals charge extra for handling state taxes, which may require separate filings in many states.

It’s worth noting that certain groups of taxpayers may have access to reduced-cost or free services through community organizations, non-profits, or volunteer programs. For instance, the IRS-backed Volunteer Income Tax Assistance VITA initiative provides free tax preparation for low-to-moderate-income individuals, seniors, and people with disabilities. Similarly, Tax Counseling for the Elderly TCE offers free assistance specifically tailored to senior citizens. These programs are particularly beneficial for vulnerable populations who might struggle to afford commercial solutions.

In conclusion, the cost of filing individual income tax returns in the U.S. depends largely on personal circumstances and preferences. While some taxpayers can complete their filings without spending anything, others may face significant expenses depending on the tools and expertise they employ. As always, it’s advisable to research all available options carefully before deciding on the most suitable approach for one’s specific situation.