Free Tax Resources for ALICE Households

Tax season is hardly any American's favorite time of year. For households that are asset limited, income constrained, employed (ALICE), however, navigating the complexities of tax preparation can add significantly to other seasonal stressors. Yet there are a few simple tax preparation tips and numerous free tax help resources available to make the process more accessible and affordable.

In addition to free filing options, recent tax breaks for low-income families may offer the motivation you need to get started, ensuring that tax season can be a time for relief rather than stress. 

Free Tax Preparation for ALICE Households

Here are some ways to get free help with taxes with minimal effort and no cost.

Dad and daughter at the dining table.

IRS Free File: A Do-It-Yourself Option

For households that prefer to self-file using software, IRS Free File is an excellent tool. Free File allows qualifying taxpayers to prepare and file their federal tax returns at no cost. To be eligible for Free File, the household income must typically total $73,000 or less. The software is user-friendly, guiding filers through each step and offering options to file both federal an state taxes for free. 

Free File is especially useful for households that feel comfortable filing their own returns but need assistance navigating the complexities of deductions, credits, or special tax situations. It also provides access to helpful tools and resources, such as a calculator for determining the correct amount of tax owed or refunds. 

MyFree Taxes

MyFree Taxes is a secure, user-friendly, no-cost software program offered by the nonprofit United Way. It allows eligible individuals and families (earning $66,000 or less annually) to self-file both federal and state returns at no cost. MyFree Taxes comes with support to ensure taxpayers receive the full range of credits and deductions they qualify for, including the earned Income Tax Credit (EITC) and Child Tax Credit (CTC). 

VITA

The IRS Volunteer Income Tax Assistance (VITA) program offers free tax return preparation services to low-income households. Through VITA, IRS-trained and certified volunteers can help with basic tax returns, including those that involve EITC, CTC, and other common tax benefits. 

To qualify, a household's income generally must be below $67,000; people with disabilities and limited English proficiency are also eligible. For those who prefer to complete their taxes in the comfort of their own home, VITA offers virtual filing options where assistance is provided remotely. 

You can find a VITA program near you in a number of ways:

TCE

In addition to the VITA program, ALICE households that include older adults can benefit from the Tax Counseling for the Elderly (TCE) program. TCE offers free tax assistance specifically for taxpayers aged 60 and older, with a focus on issues related to pensions and retirement. Like VITA< TCE services are provided by IRS-certified volunteers, ensuring that elderly taxpayers receive accurate and reliable help when filing their returns. The TCE program can be particularly beneficial for seniors who rely on fixed incomes, helping them maximize their tax benefits and access credits, such as the EITC and CTC. 

Low-Income Taxpayer Clinics

Tax issues don't always end after filing, and some ALICE households may find themselves needing help with audits, disputes, or resolving issues with the IRS. Low-Income Taxpayer Clinics (LITCs) offer free or low-cost assistance to low-income taxpayers. These clinics provide help with tax controversies, including audits, appeals, collection matters, and more. They also offer education on taxpayers' rights and responsibilities. The clinics are especially helpful for taxpayers who speak English as a second language.

LITCs can be a vital resource for resolving conflicts with the IRS and ensuring that households are not subject to unfair penalties or burdensome repayment plans. To locate an LITC near you, visit the IRS website or call their information line at 1-800-829-1040. LITCs are staffed with professionals who are familiar with the challenges ALICE households may face and can provide personalized assistance in navigating IRS matters. 

Person filing their taxes.

2025 Tax Breaks for Low-Income Families

In addition to free tax preparation resources, there are 2025 tax breaks designed to provide financial relief to ALICE households, ensuring that tax season is not just affordable but also rewarding. They are:

  • EITC for 2025: For 2025, the EITC will continue to support working families, particularly those with children. The EITC is a refundable credit, meaning that even if a household doesn't owe taxes, it can receive the credit as a refund. For ALICE households, the EITC can be a vital source of income, particularly for those who are employed but struggling with living expenses. 
  • CTC for 2025: The CTC has been expanded for the 2025 tax year, making it a significant benefit for families. Households with children can receive a credit of up to $2,5000 per child under 17, with increased benefits for low-income families. This enhanced credit will be available to a wider range of income levels and is designed to provide direct financial relief to working families. 
  • Affordable Care Act (ACA) Tax Credits: The ACA tax credits are designed to make health insurance more affordable for low-income households. For 2025, these credits will continue to ensure that premiums for marketplace insurance plans remain affordable, and households with incomes up to 400% of the federal poverty level can receive assistance. The ACA tax credit is essential for ALICE households that are trying to balance paying for insurance with meeting other financial needs. 

For ALICE households, tax season need not be a source of financial or logistical stress. By taking advantage of these free resources and tax breaks, ALICE households can make tax season simpler and more affordable, ensuring that they get the maximum benefit from their hard work. 

Get FREE Tax Assistance with United Way of York County

United Way of York County in Pennsylvania assists hardworking households on their journey toward financial stability. To meet the needs of the ALICE population, we are embarking on an issue-focused strategy to create a transformational impact for workers. This will focus on two barriers: childcare and transportation.

Need help with your taxes? We offer essential tax resources, such as MyFreeTaxes and our Volunteer Income Tax Assistance (VITA) program. Contact us to get the services you need for a financially successful future. Alternatively, consider supporting us by making a donation today!