Tax filing has just been easier! The IRS has developed a new method for taxpayers in twelve selected states that will make it easier to file federal income taxes this season, which began on January 29 and ends on April 15. The Treasury Department estimates that approximately 19 million people could be eligible to use the online tool. On Tuesday at 1 p.m. ET, the program will also be available in Spanish.
During the Tuesday press conference, IRS Commissioner Daniel Werfel referred to the new expansion as a “milestone”. He underlined that Direct File is the first time customers can electronically file their taxes directly with the Internal Revenue Service rather than using commercial tax preparation software TurboTax for income tax filings. And the fact that it’s all free is simply unmatched. Here’s all you need to know about the Direct File pilot program:
All about the IRS Direct File Pilot Program
With its simple approach, the free online tool will walk you through the filing procedure and keep track of your progress. Once finished, using Direct File will show a detailed summary of your 2023 federal taxes. Customer service representatives can also clear your doubts through live chat from Monday to Friday, 7 am to 10 pm ET. Technical support is offered in both English and Spanish.
Which states have implemented the Direct File Pilot?
Direct File is not available to taxpayers who did not live in one of the 12 states listed below in 2023.
- Arizona
- California
- Florida
- Massachusetts
- Nevada
- New Hampshire
- New York
- South Dakota
- Tennessee
- Texas
- Washington State
- Wyoming
For taxpayers in Arizona, California, Massachusetts, and New York: Direct File links you to the state-supported tool for preparing and filing state tax returns.
For Washington taxpayers, the pilot will direct you to a state site. You can apply for the Working Families Credit while filing your federal tax return with the pilot.
Direct File Eligibility: Taxpayers reporting the following sorts of income/credits/deductions on their 2023 tax return, excluding pilot state conditions, are eligible for the program.
Types of income:
W-2 wage
SSA 1099 Social Security
1099-G unemployment compensation
1099-INT interest income of $1,500 or less
Types of credits:
Earned Income Tax Credit
Child Tax Credit
Credit for other dependents
Type of deductions:
Standard deduction
Student loan interest
Educator expenses
(Taxpayers itemising deductions can’t use the pilot program)
Dixie Warden, an IRS employee, referred to the US government’s computerized tax return filing system earlier this month as “taxes for dummies”. Direct File is currently in the early stages of development and has only been available in limited quantities. Werfel hasn’t “prematurely” decided on its availability for the 2025 season yet. The success of the new initiative will have a substantial impact on its future function and growth. According to AP News, Warden, an IRS employee from Texas, saved roughly $400 by completing her returns directly with the government rather than using other tax preparation firms.