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Stock impact report

70% of taxpayers in the US can file taxes for free. Here's how. [USA TODAY]

NerdWallet, Inc. (NRDS) 
Company Research Source: USA TODAY
That is the finding of a February report from NerdWallet, the personal finance site, which describes the free tax program as "woefully" underused. "It's just astounding how few of the eligible filers are using this thing every year," said Sam Taube , a lead investing writer at NerdWallet. The typical taxpayer spends hundreds of dollars on tax software or human preparers to complete their taxes. In 2024, the Biden administration estimated that the average American spends $270 on tax preparation. Free File, launched in 2003 , allows taxpayers with modest incomes to file taxes at no charge, with help from tax preparer partners, an alternative to paid tax-preparation software. In 2024, taxpayers filed about 3 million tax returns through Free File, according to a report from the nonprofit Tax Policy Center. Another 140,000 returns came in under IRS Direct File, a pilot program that allowed taxpayers with simple taxes to file directly to the tax agency at no cost. Trump administr Show less Read more
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