NEW YORK — After weeks of testing, an electronic system for filing returns directly with the IRS is now available to taxpayers from twelve select states.
The new system, called Direct File, is a free online tool. Taxpayers in select states who have very simple W-2s and claim a standard deduction may be eligible to use them to file their federal income taxes this tax season. The program also offers a Spanish version, which will be available Tuesday starting at 1:00 PM Eastern Time.
The Treasury Department estimates that one-third of all federal income tax returns filed could be prepared using Direct File and that 19 million taxpayers may be eligible to use the tool this tax season.
“Direct File will provide millions of Americans with a free and easy way to file their taxes, without expensive and unnecessary filing fees and without upselling, putting hundreds of dollars back in the pockets of working families every year, in line with President Biden’s pledge to reduce tax rates. costs,” said National Economic Advisor Lael Brainard.
Select taxpayers in Florida, New Hampshire, Nevada, South Dakota, Tennessee, Texas, Washington, Wyoming, Arizona, Massachusetts, California and New York can participate. Direct File can only be used for filing federal income taxes. State taxpayers who need to file state taxes will have to do so separately.
The Direct File pilot is part of the agency’s efforts to build out a new government service that could replace some taxpayers’ use of commercial tax filing software such as TurboTax. It is intended to be simple and provides step-by-step explanations of easy-to-answer questions.
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Hussein reported from Washington, DC
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