After several weeks of testing with approximately 1,500 returns, Direct File, the IRS’s free tax filing program, now fully open According to the U.S. Department of the Treasury, 12 pilot states are conducting the test.
Although the pilot focuses on “simple tax situations”, the Treasury estimates the pilot could cover around a third of 19 million taxpayers. The Spanish version will be released later Tuesday at 1pm ET.
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 was intentionally designed to collect data for future improvements and decision-making, senior administration officials said.
Although the Direct File pilot does not support state returns, the software directs users in Arizona, California, Massachusetts, and New York to state-supported tax preparation tools.
There’s an easy way to qualify for Direct File. reply honestlyAccording to IRS officials, there are limited types of income, credits and deductions.
The pilot just accepts Form W-2 wage, social security Severance pay, unemployment income and interest Under $1,500. This does not include filers whose contract income was reported in the following ways: Form 1099-NECgig economy workers or self-employed filers.
To qualify, standard deductionIn 2023, it’s $13,850 for single filers and $27,700 for married couples filing jointly.
Direct File only accepts a few credits. income tax creditchild tax credit and Credit to other dependents. This software also accepts student loan interest deductions. educator expenses.
The Direct File pilot comes amid pushback from the private tax preparation industry. It has also drawn scrutiny from some Republican lawmakers. asked a question Agency authority to create programs.
When asked about direct files in household account book hearing IRS Commissioner Danny Wuerffel said in February that the IRS “has the responsibility and authority to provide taxpayers with a variety of approaches to meeting their tax obligations.”
Taxpayers have several free filing options this season, including IRS Free File, volunteer income tax assistance, tax counseling for seniors, and software from private companies.
