Most Americans Can File Their Taxes for Free, But Only 3% Do

April 28, 2022, 4:21 PM UTC

Only a tiny fraction of the number of Americans who could file their taxes for free are actually accessing the no-cost program, according to a new watchdog report.

About 70% of Americans -- or those earning less than $73,000 in 2021 -- are eligible to file their taxes without cost as part of the IRS’s Free File Alliance with tax-software companies. But only 3% of taxpayers take advantage of it, in part because of a lack of understanding and the dominance of commercial tax-filing software, according to a Government Accountability Office report released Thursday.

“An IRS analysis of the ...

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