NEW YORK (AP) — After weeks of testing, an electronic system for filing returns directly with the IRS is now available to taxpayers in 12 selected states.
A new system called direct file,teeth free online tools.Taxpayers in select states who have a very simple W-2 and claim the standard deduction. may be eligible Because you’ll be using it to file your federal income taxes this tax season. The program will also be available in Spanish starting at 1pm ET on Tuesdays.
“This is a milestone,” IRS Commissioner Daniel Werfel said at a news conference Tuesday announcing the program’s expanded availability.Tax season is officially here Started on January 29th And the deadline for submission is April 15th.
“Direct File is the first time that you can electronically submit your tax return directly to the IRS,” Werfel said. “And you can’t beat the price. It’s free.”
AP correspondent Haya Panjwani reports on the IRS’ new system that allows people to file taxes directly with the IRS for free.
The Treasury Department estimates that one-third of all federal income tax returns filed can be prepared by: direct file And 19 million taxpayers may be eligible to use the tool this tax season. About 20,000 people have participated in the pilot program so far, and participation is expected to increase to 100,000 filers in the coming weeks, according to the IRS.
Participation is available to certain taxpayers in Florida, New Hampshire, Nevada, South Dakota, Tennessee, Texas, Washington, Wyoming, Arizona, Massachusetts, California, and New York. Direct file can only be used to file federal income taxes; taxpayers in states that require state tax filing must file separately.
“Direct File provides millions of Americans with a free and easy way to pay their taxes without expensive and unnecessary filing fees or upsells, putting hundreds of dollars back in the pockets of working families each year. This is consistent with President Biden’s commitments,” said National Economic Advisor Lael Brainard.
Werfel said a component of the program that will improve ease of use for filers is a live chat feature that allows taxpayers to interact with the IRS while completing their taxes.
The Direct File pilot is part of the agency’s efforts to build a new government service that could replace some taxpayers’ use of commercial tax preparation software, such as TurboTax. We aim to keep it simple and walk you through easy-to-answer questions step-by-step.
Intuit spokesman Derrick Plummer said in an email that Direct File is “not a free tax preparation service, but a thinly veiled service that ends up costing taxpayers billions of dollars for something that is already completely free today.” It is a plan wrapped up in
“This program will cost taxpayers billions of dollars, which will be needlessly used to pay for something that is already completely free today,” Plummer said.
Several organizations offer free online tax preparation assistance to taxpayers under certain income limits, and fillable forms are available online from the IRS website, but the forms are complex and , taxpayers still need to calculate their tax liability.
Asked whether a Direct File program would likely be built and available for the 2025 filing season, Werfel said, “I don’t want to jump to conclusions prematurely,” but said he’s seeing positive feedback from users. He said the report was “encouraging.”
___
Mr. Hussein reported from Washington, DC.
___
The Associated Press receives support from the Charles Schwab Foundation for educational and explanatory reporting to improve financial literacy. This independent foundation is separate from his Charles Schwab and Co. Inc., and AP is solely responsible for its journalism.
