Filing taxes can be a bit perplexing. There are the forms themselves and then there’s the fact that you have to pay to submit a return proving to the government that you’ve already paid it enough.
Clearly I’m not the only one still scratching my head over that, because the IRS has recently introduced a new Direct File program that makes it free for qualifying taxpayers in 12 states to file their federal tax returns. Here’s what you need to know about it.
Who qualifies?
You may be eligible to try the IRS’s new Direct File program for your 2023 taxes if you live in one of the following states:
- Arizona
- California
- Florida
- Massachusetts
- Nevada
- New Hampshire
- New York
- South Dakota
- Tennessee
- Texas
- Washington
- Wyoming
In addition to living in a participating state you may only report the following types of income:
- W-2 wage income
- SSA-1099 Social Security income
- 1099-G unemployment compensation
- 1099-INT interest income of $1,500 or less
You must also claim the standard deduction and you can only claim a few other select tax breaks. Check out the Direct File website to see if you qualify.
How does it work?
The Direct File program works similar to many online tax software. It will ask you questions and walk you through each tax form. You input your information and when you’re done, you submit your return for free. You can access Direct File from any computer, tablet, or smartphone and file a return in as little as 30 minutes.
If you have questions, you can contact live online support from IRS staff Monday through Friday, 7 a.m. to 10 p.m. ET. But it’s important to note that they can’t access your personal tax records or give you advice on how to handle your specific return. They’re only there to assist with concerns about the program itself or to clarify the form’s terms or instructions. If you want more personalized assistance, you should consider consulting a tax professional in your area.
The Direct File program is only for federal tax returns, though the IRS has partnered with a few states to import the information from your federal return into the states’ online tax tools. When you do the eligibility check on the Direct File website, it should notify you if this is a possibility in your state. If not, you may need to use a different tax software program to submit your state return.
When will other states get access to Direct File?
Direct File is currently a pilot program, which is why it’s only operating in a limited number of states with limited features. Residents of other states won’t have the option to use Direct File for their 2023 taxes. But the program should open up to more Americans in future years. It’s something to keep an eye on when the time comes to file your 2024 taxes next spring.
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