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12 states qualify for the IRS Direct File pilot program: Is yours one of them?

Twelve states have access to IRS filing programs designed to make filing your taxes easier. (iStock)

The IRS is rolling out sweeping new changes to its tax filing system, starting a slow launch. direct file program. This program is intended to allow taxpayers to bypass expensive tax preparation software such as his TurboTax or H&R Block and file directly with the IRS.

The program will be rolled out in phases. This year, only 12 of her states have direct file programs available. Initially, only government employees will have access to Direct File. Access will be available to other filers in the coming months.

“We’re starting small as filing season begins,” IRS Commissioner Danny Wuerffel said. Said. “Pilots are continually being tested with taxpayers to ensure we are able to identify and resolve issues well beyond the start of filing season and into February and March.”

The 12 states include a handful of states with no income tax: Florida, New Hampshire, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming. Several states that impose income taxes will also join the program, including Arizona, Massachusetts, California and New York.

“Direct File is a step toward aligning the IRS with 21st century tax administration,” explained Nina Olson, executive director of the Taxpayer Rights Center.

The program is specifically aimed at helping low- and moderate-income households, but will eventually be rolled out to all taxpayers.

If you’re relying on your tax refund to pay off high-interest debt, consider a low-interest personal loan instead. Use online marketplaces like Credible to ensure you get the best interest rate and lender for your needs.

Tax season has officially begun: Here’s everything you need to know before filing

Other potential tax adjustments are also planned

the house recently passed a tax bill It would temporarily expand the child tax credit. The $33 billion credit expansion could help more low-income households qualify for credit and provide more credit.

The bill is now before the Senate, and it is a bipartisan bill with the Senate largely supporting it.

House Speaker Mike Johnson, R-Louisiana, said, “Chairman Smith passed this bipartisan bill through committee with a strong vote of confidence, and I would like to thank him for passing related legislation on a regular order earlier this Congress.” They deserve a lot of credit for marking it up.” Said In a statement. “This bottom-up process is a great example of how Congress should legislate.”

The National Tax Agency also Basic deduction adjustment This year, take into account inflation. The standard deduction for single and married taxpayers filing separately increased from $13,850 to $14,600.

For married couples filing jointly, this deduction increases from $27,700 to $29,200. For heads of households, the deduction will increase from $20,800 to $21,900 this year.

Credible introduces some personal loan lenders that offer quick loans. Visit Credible to compare interest rates and lenders and find a schedule that works for you.

The number of electric vehicles eligible for the new electric vehicle tax credit decreases to 13.

Beware of more advanced tax scams

Tax season is about more than just refunds. Scams happen all the time, the most recent being an individual posing as an IRS employee.

of FTC now warns taxpayers Fake emails, social media messages, text messages, etc. Scammers often send messages instructing you to check your tax refund status through a specific link or form. Clicking on these links or submitting these forms could potentially steal your identity or install malware on your device.

“With the increased use of technology and social media, I believe that many organizations like the IRS communicate in non-traditional ways, so I believe some people will fall for these scams. ,” said Kemberly Washington, a New Orleans-based certified public accountant and former accountant. IRS agent, Said.

The IRS will not contact you via text, social media, or email. For tax refunds, you can only check the status through .where is my refundTools on the IRS website.

Start shopping for a personal loan today. With Credible, you can see multiple lenders, rates, and terms in one place.

IRS waives $1 billion in penalty taxes, 2024 tax season begins in January 29

Have a finance-related question but don’t know who to ask? Email it to your trusted money expert. Moneyexpert@credible.com Your questions may be answered in Credible’s Money Expert column.

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