Free online tax filing services Last year, through the IRS website, I found H&R Block to file my federal income taxes for free. However last year I also lived in the state of Washington which does not have a state income tax. This year, however, I live in Oregon, which does, but H&R Block, while still offering to process federal tax returns for free, charges $15 for state returns. Does anyone know who offers free online filing services for state income tax returns? The IRS site is annoyingly difficult to navigate or determine whether I am even being led in the correct direction.