IRS free tax filing program launches in 12 pilot states. Here's what to know
Source: CNBC
PERSONAL FINANCE
IRS free tax filing program launches in 12 pilot states. Heres what to know
PUBLISHED TUE, MAR 12 2024 5:00 AM EDT
Kate Dore, CFP®
KEY POINTS
* IRS Direct File is now fully open in 12 pilot states for simple tax situations, according to the U.S. Department of the Treasury.
* The Treasury estimates the Direct File pilot could cover about one-third of federal tax returns or 19 million taxpayers, and hopes 100,000 filers will participate this season.
After weeks of testing with roughly 1,500 returns, Direct File, a free tax filing program from the IRS, is now fully open in 12 pilot states, according to the U.S. Department of the Treasury.
While the pilot focuses on simple tax situations, the Treasury estimates the pilot could cover about one-third of tax situations for 19 million taxpayers. The Spanish language version opens later on Tuesday at 1 p.m. ET.
Dozens of countries have provided free tax options to their citizens for years, Deputy Secretary of the Treasury Wally Adeyemo said during a press call on Monday. American taxpayers who want to file their taxes for free directly with the IRS should have that option.
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Read more: https://www.cnbc.com/2024/03/12/irs-free-direct-file-program-launches-in-12-pilot-states.html
groundloop
(11,519 posts)That's denying corporations the opportunity to make obscene profit at the expense of everyday citizens.
BumRushDaShow
(129,018 posts)but alas...
mahatmakanejeeves
(57,457 posts)you have to file a form that is not supported under that option.
And good morning. I've got C-Span on.
BumRushDaShow
(129,018 posts)and yes, I have used the fillable forms in the past almost exclusively, except the past couple years due to getting caught in a backlog of refunds. I ended up doing the unthinkable (although it worked) and using TurboTax (and got a check deposited in a week).
I was thinking of turning on CSPAN this morning and thought better of it...
mahatmakanejeeves
(57,457 posts)BumRushDaShow
(129,018 posts)and wasn't wanting to get my BP this morning.
Drum
(9,161 posts)The IRS Direct File pilot states include Arizona, California, Florida, Massachusetts, Nevada, New Hampshire, New York, South Dakota, Tennessee, Texas, Washington and Wyoming. Alaska was originally included but is no longer part of the pilot.
The soft launch and limited rollout were intentionally designed to capture data to make improvements and decisions for the future, a senior administrative official said.
Direct File pilot doesnt support state returns, but the software will guide users from Arizona, California, Massachusetts and New York to a state-supported tax-prep tool.
mahatmakanejeeves
(57,457 posts)I am directed to an off-site commercial site.
I end up printing and mailing the Virginia income tax forms.
And good morning.
Drum
(9,161 posts)Yes, its a bummer about the limited number of states in the roll-out. The article linked in the OP also states that the new service will accommodate mostly simpler situations
which might not help our family here in N.Y.
Hopefully its progress in the making
jmbar2
(4,886 posts)If you are not in one of the 12 test states, they provide links to other free services. I used one of them and it was very thorough, fast and easy. Did both my state and federal tax returns for free, and autofiled them.
Easy peasy.
republianmushroom
(13,595 posts)Mosby
(16,311 posts)Is that technology has made it more expensive to file taxes. When I was young I filed a 1040EZ. Simple, easy and didn't cost a thing.
Mustellus
(328 posts)forgotmylogin
(7,528 posts)JudyM
(29,250 posts)To qualify, you must claim the standard deduction, which is $13,850 for single filers and $27,700 for married couples filing jointly for 2023.
Direct File only accepts a few credits: the earned income tax credit, child tax credit and credit for other dependents. The software also accepts deductions for student loan interest and educator expenses.
Thanks for posting this news!
mahatmakanejeeves
(57,457 posts)That won't let you itemize deductions?
JudyM
(29,250 posts)A quick look at the IRS website doesnt give much detailed info, but digging around should produce more. This page says some business expenses can be deducted: https://www.irs.gov/newsroom/taxpayers-with-complicated-tax-returns-can-use-irs-free-file#:~:text=The%20IRS%20Free%20File%20adjusted,available%20in%20English%20and%20Spanish.
More info on how it works and other options: https://www.cnbc.com/select/how-to-file-your-taxes-for-free/
mahatmakanejeeves
(57,457 posts)JudyM
(29,250 posts)Dont know how their free file works. Might be checking it out soon, though.
Mysterian
(4,587 posts)They insisted I receive a text message to verify my account and I do not have cell service where I live. No other option.
ananda
(28,860 posts)They offer several, based on income.
The one I used last year became obsolete for
my income level, so I used the IRS' own
proprietary version.
It worked fine.