Course Catalog / BMU 040 / Lesson 5 of 5
BMU 040
Lesson 5: Free tax help and your money plan
Quick review
1. What is an emergency fund?
See the answer
Money set aside for unplanned costs.
2. When should an automatic transfer happen?
See the answer
The day after payday.
Why this matters
Paying someone to do your taxes can cost a lot. Many people can file for free. The IRS runs free programs with trained volunteers and free filing software.
In this lesson you will find free tax help, then finish your one month budget with one change and a savings goal.
Start with what you already do
You already know some help is free, like the library.
Common belief: Free tax help is not safe or good.
What is actually true: The IRS says all VITA and TCE volunteers who prepare returns must pass tax law training that meets or exceeds IRS standards.
In this lesson you will
- Name two free ways to file taxes
- Find a free tax site near you
- Finish your one month budget with one change and a savings goal
Key words
- VITA
- Volunteer Income Tax Assistance. Free tax help from IRS certified volunteers.
- TCE
- Tax Counseling for the Elderly. Free tax help focused on people 60 and older.
- refund
- Money the IRS pays back if too much tax was taken out.
Free ways to file
| Free option | Who it is for |
|---|---|
| VITA | People who generally make about $70,244 or less, people with disabilities, and people who speak limited English. |
| TCE | Free tax help, mainly for people 60 and older. |
| IRS Free File guided software | People with an adjusted gross income of $89,000 or less, for 2025 returns filed in 2026. Each partner sets its own rules. |
| Free File Fillable Forms | Any income. You fill in the forms yourself. |
These limits are from IRS pages checked Oct 29, 2026. They change each year, so check the IRS site before you file.
Find a site near you
VITA and TCE sites are often at libraries, schools, and community centers. Use the IRS VITA Locator Tool or call 800 906 9887. Check the IRS list of what to bring before you go.
Plan for your refund
If you usually get a refund, the CFPB suggests you set a goal for how much of it to save. A refund can jump start your emergency fund.
Text version of this figure
Your one month money plan. Put it all on one page.
- Step 1, Income: From pay stubs, or last year divided by 12.
- Step 2, Expenses: Bills plus your log groups.
- Left over or short: Income minus expenses.
- Step 3, One change: One want to cut or trim.
- Step 4, Savings goal: A weekly amount and an automatic transfer.
- Free help: VITA, TCE, or IRS Free File.
Source: Consumer.gov; CFPB; IRS (Oct 29, 2026).
Worked example: Dana's plan
| Part | Dana's plan |
|---|---|
| Income | $2,100 |
| Expenses | $2,060 after packing lunch |
| Left over | $40 |
| One change | Pack lunch three days a week, saves about $25 a week |
| Savings goal | $400 at $18 each payday ($9 a week), auto transfer the day after payday |
| Free help | VITA site at her library |
Dana is a made up example. Your plan will use your own numbers.
Practice: Pick a free tax option
Use the IRS limits in this lesson. The people are made up.
- Rosa is 66 with a simple return.
- Ken made $52,000 and is fine doing it online.
- Lee made $95,000 and knows the tax forms.
Check your practice: feedback
- TCE, which focuses on people 60 and older. VITA also works if her income is $70,244 or less.
- IRS Free File guided software, for $89,000 or less. VITA also fits.
- Free File Fillable Forms. It has no income limit, but no guided help.
Common mistakes
- Paying for tax prep without checking free options. Check VITA and IRS Free File first.
- Spending the whole refund right away. Set a goal to save part of it.
- Making the plan once and never looking again. Check it at the end of each month.
Try it: Capstone: your one month money plan
Pick your scenario:
- I got a refund last year
- I owed taxes last year
- I have not filed in a while
- Write your monthly income.
- List your expenses from Lessons 1 and 2.
- Write what is left over or short.
- Write your one change and its weekly amount.
- Write your savings goal and transfer plan.
- Write one free tax or money help source.
- Then check it on the Course project page.
Do it by: 7 days from today
Reflect
What is one money habit you want to keep after this course?
Check your understanding
1. Lena speaks limited English and needs tax help. Where can she go for free?
- A VITA site
- A paid tax prep store
- A refund advance lender
See the answer and feedback
A is correct. Yes. VITA serves people who speak limited English.
B: Paid stores charge fees. VITA is free for people who qualify. Review Free ways to file.
C: Refund advances can cost money. VITA is free for people who qualify. Review Free ways to file.
2. Who is TCE mainly for?
- Small business owners
- People 60 and older
- Students under 18
See the answer and feedback
B is correct. Yes. TCE focuses on people 60 and older.
A: TCE is not about business. Review Key words.
C: TCE is for older adults. Review Key words.
3. Why check the IRS site each year?
- The site moves
- The forms get easier each year
- The limits change
See the answer and feedback
C is correct. Yes. Income limits change each year.
A: The point is the limits. Review Free ways to file.
B: The forms do not get easier. The limits change each year. Review Free ways to file.
Takeaway: free tax help
- VITA: free help, income limit
- TCE: focus on 60 and older
- Free File guided: income limit
- Fillable Forms: no limit, no guidance
Capstone rubric
This is your course project. It is checked on 6 rows: Income, Expenses, Left over or short, One change, Savings goal, Free help. See what Ready means on the Course project page.
When it is done, build it on the Course project page and press Check my project. Your certificate needs it.
Use it: your follow up plan
- In 7 days: Check that your automatic transfer is set and your one change is working.
- In 30 days: Compare your real month with your plan, retake the self check, and make next month's plan.
- Put both dates on your calendar now.
Your job aid: print or save the One Month Money Plan.
Keep learning
- BMU 043 Credit and Borrowing Basics: credit reports, scores, and the real cost of loans (coming soon).
- BMU 050 Spot the Scam: protect your money from scams (free).
- BMU 203 Mission: Degree Without the Debt: a bigger money plan for school (All Access).
- CFPB Start Small, Save Up: free savings tools.
One question for us: What one change would make this course more useful for you?
Recap
- VITA, TCE, and IRS Free File are free ways to file.
- Income limits change each year, so check the IRS site.
- Plan to save part of a refund.
- Your plan: income, expenses, one change, a savings goal, and free help.
You now have: a one month money plan with one change, a savings goal, and a free help source.
Next up
You finished the lessons. Now take the Posttest. Score 80% or higher to pass, and retake it as often as you need. Then answer a short optional survey and get your Certificate of Completion.
Your certificate needs both the Posttest and your course project.
Sources
- IRS: Free tax return preparation for qualifying taxpayers (VITA and TCE) (current as of Oct 29, 2026)
- IRS: IRS Free File, do your taxes for free (current as of Oct 29, 2026)
- CFPB: Building your savings? Start with small goals (booklet) (current as of Oct 29, 2026)
- Consumer.gov (FTC): Making a Budget (current as of Oct 29, 2026)
