Online Taxes and FreeTaxUSA offer free Oregon filing for filers who have an adjusted gross income of $41,000 or less.

Even for many do-it-yourselfers, paying a bundle for tax prep software has become as familiar a part of tax season as Form 1040.

But filers reporting less than $73,000 in income — a group that includes most Oregonians, as the state’s median household income is just $71,600 — it doesn’t have to be that way.

Certain tax prep companies offer free filing as part of an agreement though the IRS. Not just free-until-things-get-complicated, or even free-but-you-pay-for-state-filing — just free.

Here’s how qualifying taxpayers can take advantage.

Where do I find free online tax prep?

Lots of tax prep companies advertise free filing, only to switch taxpayers to the paid version after they report a less common type of income or some other complication.

But filing software companies that participate in the IRS Free File program offer all their features, without the upsell. There’s only one way to make sure you’re in line to file for free without the upsell: Go to the IRS’s Free File program webpage and navigate to a tax preparer from there.

How can I file Oregon income taxes free?

Only a handful of IRS Free File providers offer free preparation and filing for Oregon state income taxes, and the income limits are more strict.

1040now offers free Oregon filing for filers who have an adjusted gross income of $32,000 or less.

Online Taxes and FreeTaxUSA offer free Oregon filing for filers who have an adjusted gross income of $41,000 or less.

TaxSlayer offers free Oregon filing for filers who:

• Are 57 or younger with an adjusted gross income of $60,000 or less;
• Are eligible for the Earned Income Tax Credit;
• Are an active duty military member with an adjusted gross income of $73,000 or less.

Oregon also offers free fillable forms, which are available to any tax filers regardless of income. The IRS offers a similar service. Unlike the services listed above, fillable forms don’t provide the step-by-step guidance or help taxpayers identify deductions or credits for which they might qualify. They do perform basic calculations.

Why would tax prep companies offer free filing?

The Internal Revenue Service has long steered clear of creating its own free electronic filing software to avoid competing with the likes of TurboTax, H&R Block and TaxAct.

In exchange, those companies agreed to offer free file versions of their own software to low- and moderate-income Americans.

Why haven’t I heard about this?

Some companies have muddled the process by promoting “free” versions for “simple” returns. The problem is that as soon as you hit a complication, like business income or a stock sale, you’re bumped up to the paid version. And it might cost extra to file a state income tax return.

Those versions are separate and distinct from the IRS Free File version, which can handle just about any form of income you can throw at it. Many versions also include a free state tax return.

ProPublica, an investigative journalism nonprofit, showed that TurboTax owner Intuit sought to bury its now defunct free-file program in search results, instead promoting its free-until-it-gets-tricky edition. It and other companies didn’t promote the IRS Free File edition on their home pages.

As a result, 14 million taxpayers paid to file their taxes in 2020 when they could have done it for free, according to ProPublica, which cited a government report.

The IRS last year made changes to its Free File program prohibiting private companies from using search engine tricks to hide the free file edition. And it lifted the prohibition on developing its own e-file software, although it has yet to do so.

Several organizations offer free tax assistance in Oregon. Residents can call 211 to find assistance in their area. A few programs:

AARP Foundation Tax-Aide: Free services provided to anyone, with a focus on taxpayers who are over 50 years old and have low to moderate income. Call 888-227-7669 or go to the AARP Tax-Aide website.

IRS Volunteer Income Tax Assistance: Free help to people who generally make $60,000 or less, people with disabilities and taxpayers who speak limited English. Go to the IRS VITA website.

MFS-CASH Oregon: Virtual service is offered in addition to in-person service in the Portland metropolitan area. Call 503-243-7765 or visit cashoregon.org.

United Way MyFreeTaxes: Offers free tax guidance, and preparation for filers who make about $60,000 or less. Call 866-698-9435 or go to myfreetaxes.com.