IRS adds ‘important update’ for free Direct File pilot as the federal tax deadline approaches

The IRS has made a significant update to its Direct File, a free tax filing program, one week before the federal tax deadline.

With this update, Direct File users can now automatically import key verification details from the IRS, resolving a common mistake that has led to rejected returns.

This pilot program allows filers in twelve states to use Direct File and easily verify their returns by retrieving information from their IRS accounts, which undergo identity verification.

This feature aims to minimize an error that has previously hindered the successful filing of Direct File returns.

By automating this verification process, first-time users and those who were unable to recall their previous year’s adjusted gross income or temporary pin no longer have to manually input these details, reducing the risk of filing errors.

Direct File will remain open for rejected returns until April 20th.

However, it’s important to note that Direct File is only available to taxpayers with straightforward tax situations.

If your return includes items like Form 1099 income or self-employment income, you may not be eligible for this free filing option.

To qualify for Direct File, you must meet certain criteria, including claiming the standard deduction and your income must fall within specified limits.

Additionally, only specific credits and deductions are supported by the software.

The IRS estimates that approximately one-third of federal income tax returns could qualify for Direct File this year, and they encourage eligible taxpayers to take advantage of this convenient and free filing option.