I keep running into the same problem every year - I find free tax software for federal filing, but then they want to charge me $30-40 for state filing. At that point, it's not really free anymore.
I'm looking for free state tax filing software that works with whatever free federal option I choose. Or better yet, free tax software that includes both federal and state for free.
I live in California, which I know has its own free filing program, but I'd prefer to use the same software for both federal and state. Has anyone found a truly free option that doesn't charge for state returns? I don't mind if it's through the IRS free file program or some other method.
This is a common frustration! Many free" tax software options are only free for federal, then charge for state. Here are the truly free options for both:
1. Cash App Taxes - Completely free for federal and state, no income limits
2. IRS Free File Program - Some partners offer free state filing (varies by provider)
3. Your state's free filing program - Many states have their own free filing options
4. IRS Direct File - If available in your state, includes state filing in participating states
For California specifically:
- CalFile is California's free filing system for simple returns
- Some IRS Free File partners offer free California filing
- Cash App Taxes includes California for free
The trick is finding which option works for your specific situation. If you use an IRS Free File partner, make sure to check if they offer free state filing for your state. Some only offer free state filing for certain states or income levels.
Cash App Taxes is probably your safest bet since they promise free state filing for all states regardless of income.
I'm in California too, and I feel your pain. Here's what I've found:
Cash App Taxes is completely free for California. I used it last year and it worked well.
The IRS Free File program has several partners that offer free California filing if you qualify based on income. TurboTax, H&R Block, and TaxAct all have California options through IRS Free File.
California also has CalFile, which is the state's own free filing system. It's pretty basic, but it works for simple returns. The downside is you have to file federal separately, then use CalFile for state.
My recommendation: try Cash App Taxes first. If that doesn't work for some reason, use the IRS Free File lookup tool to find which partners offer free California filing for your income level.
Avoid the commercial websites of tax software companies - they almost always charge for state filing even if federal is free."
The state filing fee is how many free" tax software companies make their money. They lure you in with free federal filing, then hit you with state fees.
Here are your options for truly free state tax filing:
1. Cash App Taxes - Free for all states
2. IRS Free File partners - Some offer free state filing, check each one
3. State-sponsored programs - Like CalFile in California
4. IRS Direct File - Includes state in participating states
5. FreeFile Fillable Forms - Federal only, but some states have similar systems
For 2025, I'd recommend:
- First, check if IRS Direct File will be available in California
- Second, try Cash App Taxes
- Third, use the IRS Free File lookup tool
Also, check if you qualify for free tax preparation through VITA or AARP Tax-Aide. They can prepare and file both federal and state returns for free if you meet income requirements.
Don't pay for state filing until you've exhausted all the free options!