IRS Update for Tax Filers in 12 States

By
News for today
-
0
18

The Internal Revenue Service’s free online tax-return tool has opened to residents of 12 pilot states.

IRS Direct File is a new, free-of-charge tool that allows taxpayers to file their federal tax returns directly with the IRS—an alternative to third-party tax-preparation tools, many of which charge for their services. The tool is now open to residents of Arizona, California, Florida, Massachusetts, Nevada, New Hampshire, New York, South Dakota, Tennessee, Texas, Washington and Wyoming.

The program walks tax filers through “the complexities of the nation’s tax code to complete their filing easily with an accurate calculation of their refund or tax owed,” the IRS said. Customer-service representatives can also be accessed through a live-chat feature should a filer have any queries about the service.

The pilot was created after an IRS feasibility report in May found that three-quarters of taxpayers would be interested in a free tax-filing system provided by the government agency. So far, about 20,000 people have participated in the pilot program, and the government agency is expecting participation to grow to 100,000 filers as the pilot moves forward in the coming weeks, the Associated Press reported.

A stock image of a tax return with a calculator and a pen. The IRS Direct File program is available to taxpayers in 12 pilot states.

GETTY

“The early results from Direct File have shown taxpayers like the ease and convenience of the tool, and moving into the full-scale launch of the pilot will give more taxpayers the chance to use this free option,” IRS Commissioner Danny Werfel said in a statement.

“Expanding Direct File as the tax deadline approaches will provide more taxpayers a way to file directly with the IRS for free, and it will give us more valuable information to assess this pilot. For those who haven’t filed their taxes in these 12 states, we encourage them to visit IRS.gov and see if Direct File is the right option for them,” he continued.

Newsweek has contacted the IRS for comment via email outside of normal working hours.

Who Can Use Direct File?

As the tax-filing tool is only in its pilot stage, it is not yet available to all Americans. For example, it is not available to those with more complicated tax returns that involve freelance employment.

Direct File is suitable for taxpayers living in one of the 12 pilot states who fall into the following categories:

  • They report income earned from jobs that generate a Form W-2, including taxpayers with more than one job with W-2 wages.
  • They claim earned income tax credit, child tax credit and credit for other dependents.
  • They claim the standard deduction and deductions for educator expenses and student-loan interest.
  • They lived in the same state for the entire calendar year 2023.

Once taxpayers start their return, they can pause and sign in to finish at any time before this year’s filing deadline. Tax-filing season began on January 29, and individual tax returns are due on April 15.