January 9, 2020 If your income last year was $69,000 or less you can use IRS Free File. More than 20 states have a State Free File program patterned after the federal partnership, so many taxpayers are eligible for free federal and state online tax preparation. How it works: Go to the Free File page of IRS.gov. Use the look up tool and find the Free File option that’s right for you. Select a provider and follow the links to begin your tax return. IRS Free File partners may offer state tax returns for free as well, each partner sets its own eligibility standards.