New free tax filing options can save workers money and ease financial stress during tax season. Employers can boost productivity, profits, and impact by sharing information about resources including the IRS’ Free File, Direct File, and Volunteer Income Tax Assistance (VITA) program.
New free tax filing options can save workers money and ease financial stress during tax season, when it often spikes, affecting mental, physical, and financial wellness.
Employers can ease this burden, boosting productivity, profits, and impact, by sharing information about free tax filing resources including the IRS’ Free File, Direct File, and Volunteer Income Tax Assistance (VITA) program.
Notably, the Direct File program is now available for taxpayers in 25 states, up from 12 last year, and it does not have any income limits.
Tax filing season begins Monday, January 27, the Internal Revenue Service announced this month.
Part of a modernization effort initiated by the Inflation Reduction Act, the expanded free tax filing options are expected to improve the tax-paying experience through improved customer service options and more free resources, reports NBC’s Julia Yohe.
Strategy to boost financial wellness for small businesses
One smart strategy to boost financial wellness for small businesses:
Sharing timely resources.
Sharing timely financial wellness resources is an economical strategy for small businesses—and organizations of all sizes—to boost financial wellness among workers in general but especially during tax season:
“I have a client-couple who’s going to save $600 by not using a well-known tax prep chain this year,” says TrustPlus Senior Financial Coach Denae Hannah. “They have each paid $300 dollars to file for the last 10 years. The savings will go directly towards helping them meet their goal to pay down debt this year.”
Free tax filing options: What workers should know
Tax filing season begins Monday, January 27 and the deadline is Tuesday, April 15.
The IRS now has 3 free tax filing options.
- VITA (>$67,000): The VITA program provides free basic tax return preparation to people who generally make $67,000 or less, persons with disabilities; and limited English-speaking taxpayers.
- Review Publication 3676-B for what to bring to VITA sites, such as identification, income statements, and relevant tax documents.
- Free File (>$84,000): The IRS and software companies deliver the program through the Free File Alliance, so people can e-file federal taxes for free.
- Direct File (no income limit for the 25 states participating in the program). Direct File opens January 27, 2025. You can file your taxes with Direct File the first day of filing season in 25 participating states.
Most refunds are expected to be available within 21 days of filing, per the IRS.
For updates, you can visit the Where’s My Refund? page on the IRS’ website within 24 hours of e-filing.
Refund information is available up to four weeks after filing a paper return.
How employers can boost financial wellness during tax season
- Share resources: Promote Free File, Direct File, and Volunteer Income Tax Assistance (VITA) program and share the VITA Locator Tool and helpline (800-906-9887) with low- and moderate-income workers.
- Encourage early filing: Filing taxes early reduces stress and helps employees address potential issues sooner; they can start as early as January 27, 2025.
- Provide clear information: Share what workers need to bring to VITA sites, such as identification, income statements, and relevant tax documents. They should refer to Publication 3676-B for details.
- Promote self-prep options: Workers can e-file federal taxes for free via Free File (>$84,000) and Direct File (no income limit), and some VITA locations offer self-preparation tools with volunteer guidance.
When workers are exposed to life stressors, those who confront them have lower levels of stress hormones, finds Jason Radley, an associate professor in the department of psychological and brain sciences at the University of Iowa.
By sharing information about free tax filing resources like the IRS’ Free File, Direct File, and Volunteer Income Tax Assistance (VITA) program, you’re supporting your workers in confronting the financial stressor that is filing and paying taxes.
As Megan McCoy, an assistant professor in the department of personal financial planning at Kansas State University, puts it to Jancee Dunn, writing in the New York Times:
“Problems in finance always come from delaying facing it head-on…The sooner you figure out what your tax situation is, the sooner you can talk to the government about a payment plan and figure out lower-interest options.”
So help your workers tackle tax season head on in 2025.
Your people and your organization will benefit.
So help your workers tackle tax season head-on in 2025. Your people and your organization will benefit. Speak with TrustPlus about financial wellness for small businesses.
