IRS free tax filing program launches in 12 pilot states. Here's what to know

[mahatmakanejeeves]

Source: CNBC

PERSONAL FINANCE

IRS free tax filing program launches in 12 pilot states. Here’s 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.”

{snip}

Read more: https://www.cnbc.com/2024/03/12/irs-free-direct-file-program-launches-in-12-pilot-states.html

[groundloop]

1. FREE - That's unAmerican....

That's denying corporations the opportunity to make obscene profit at the expense of everyday citizens.

[BumRushDaShow]

2. I wish PA was one

but alas...

[mahatmakanejeeves]

3. You still have the Free Fillable Forms option, I suspect, unless

you have to file a form that is not supported under that option.

And good morning. I've got C-Span on.

[BumRushDaShow]

4. Good morning

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]

5. There's a lot of grandstanding going on. I think I'll stop there. NT

[BumRushDaShow]

7. I figured that

and wasn't wanting to get my BP this morning.

[Drum]

6. IRS Direct File pilot states

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 doesn’t support state returns, but the software will guide users from Arizona, California, Massachusetts and New York to a state-supported tax-prep tool.

[mahatmakanejeeves]

10. I can't file for free online in Virginia, at least not with the VDT.

I am directed to an off-site commercial site.

I end up printing and mailing the Virginia income tax forms.

And good morning.

[Drum]

11. G'morning!

Yes, it’s 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 it’s progress in the making

[jmbar2]

8. Just filed yesterday - everything was quick and easy using recommended alternatives

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]

9. This should be free to all who have to pay taxes.

[Mosby]

12. What i find concerning

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]

13. FOR THE REST OF US....

https://www.freefilefillableforms.com/#/fd/gateway is also IRS, but without state filing, and with minimal handholding.

[forgotmylogin]

18. Another:

https://www.freetaxusa.com

Free Federal e-file, to include state return is $15.

[JudyM]

14. A bit more info

The pilot will only accept Form W-2 wages, Social Security retirement income, unemployment earnings and interest of $1,500 or less. This excludes filers with contract income reported via Form 1099-NEC, gig economy workers or self-employed filers.

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]

15. "To qualify, you must claim the standard deduction ..."

That won't let you itemize deductions?

[JudyM]

16. Seems they allow a couple

The software also accepts deductions for student loan interest and educator expenses.

A quick look at the IRS website doesn’t 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]

17. I thought you could download Schedule A. That's itemized deductions, I think. NT

[JudyM]

21. It is.

Don’t know how their free file works. Might be checking it out soon, though.

[Mysterian]

19. Would not work for me

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]

20. I already used the IRS free file.

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.