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More Americans will be able to file their taxes for free through the IRS next year – CNBC

“The Treasury Department and the IRS look forward to working with states to expand direct tax return filing to Americans across the country,” Treasury Secretary Janet Yellen said in a statement.

In 2024, filers in 12 states who have “simple” tax situations, such as making less than $200,000 a year from W-2 income alone, Try the new Direct File tool More than 140,000 taxpayers took advantage of the free filing option to file their federal tax returns, exceeding the IRS’s expectations for the pilot program.

In addition to expanding access to the Direct File program in all states, the IRS is also working on other ways to expand eligibility.

“Our goal over the next few years is to expand the reach and tax coverage of direct file to provide choice to working- and middle-class taxpayers across the country. The Treasury Department and IRS will be announcing details about the expansion in the coming months,” a Biden administration official told CNBC Make It in an email.

The IRS also announced it would extend its Free File program through 2029. The program began in 2003 and allows taxpayers with adjusted gross income of $79,000 or less to use commercial tax preparation software for free through the IRS’s private partners.

“We are pleased to have seen the program grow this year and look forward to continuing our important collaboration with the tax software industry,” said IRS Commissioner Danny Wuerfel. He said in the announcement“Free File is part of a successful IRS filing season that has seen increased interest in a variety of free programs to assist taxpayers.”

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