19 million people may qualify for free tax prep through the IRS this season. Here’s where they live

The IRS has expanded its Direct File program, a free tax preparation service, to 12 pilot states: Arizona, California, Florida, Massachusetts, Nevada, New Hampshire, New York, South Dakota, Tennessee, Texas, Washington, and Wyoming.

This pilot program primarily targets taxpayers with simple returns, such as those who work as W-2 employees and use the standard deduction.

An estimated one-third of federal income tax returns could qualify for Direct File, totaling about 19 million eligible taxpayers.

Currently, the Direct File pilot only supports certain tax situations, but it’s anticipated that it will be expanded to other complexities in the future.

The Treasury Department anticipates receiving 100,000 filings through this program this season, accounting for 0.5% of eligible filers.

In addition to Direct File, taxpayers nationwide also have access to the IRS Free File program, which is a partnership between the IRS and tax software companies.

To qualify for Free File, your adjusted gross income must be $79,000 or less.

Free File offers fillable forms for all income levels and provides access to software from various tax software providers.

While only 3% of taxpayers utilized Free File last season, there has been a significant increase this year, with a nearly 15% rise in returns compared to the same period last year.

Other free tax preparation options include Volunteer Income Tax Assistance, Tax Counseling for the Elderly, and private company software.

Overall, the expansion of Direct File and the availability of IRS Free File provide significant opportunities for taxpayers to prepare and file their returns without incurring a cost.