HomeFinance NewsPersonal financeTaxpayers Rejoice! Free IRS E-Filing Now Live in 12 States

Taxpayers Rejoice! Free IRS E-Filing Now Live in 12 States


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


The Internal Revenue Service (IRS) has launched its Direct File program, a free tax filing platform, in 12 pilot states.

The program, designed for simple tax scenarios, has the potential to assist one-third of American taxpayers (approximately 19 million individuals).

This pilot program aims to offer taxpayers an accessible and convenient option for filing their taxes without any fees.

The program’s eligibility criteria for simple tax situations include: – Form W-2 wages – Social Security retirement income – Unemployment earnings – Interest income of $1,500 or less – Standard deduction – Limited eligibility for the Earned Income Tax Credit, Child Tax Credit, and Credit for Other Dependents – Deductions for student loan interest and educator expenses Currently, the participating states in the pilot program are Arizona, California, Florida, Massachusetts, Nevada, New Hampshire, New York, South Dakota, Tennessee, Texas, Washington, and Wyoming.

The Spanish version of the program will be available later today.

The IRS hopes to enroll at least 100,000 taxpayers in the Direct File pilot this tax season to gather data and improve the program for future rollout.

The Treasury estimates that within five years, Direct File could potentially save the average filer $160 annually, or a collective $11 billion in tax preparation fees and time.

Despite pushback from the private tax filing industry and skepticism from some Republicans questioning the IRS’s authority, the agency asserts its responsibility to provide taxpayers with various tax filing options.

Taxpayers should note that Direct File supports federal tax returns only, and separate state returns may require additional filing processes.

Overall, the IRS Direct File pilot, while limited in scope for the pilot phase, represents a step towards providing free and accessible tax filing services to millions of Americans.

  • Overall sentiment: positive
  • Positive

    “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.”


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