Some taxpayers will soon qualify for Direct File, a free tax-filing platform from the IRS. Here's what taxpayers can expect this season.
  • Some taxpayers will soon qualify for Direct File, a free tax-filing option from the IRS.
  • The pilot will begin as an invitation-only service before rolling out to certain taxpayers in 12 states by mid-March.
  • In 2023, individual U.S. taxpayers spent an average of $150 to prepare and file returns, according to the IRS.

Eligible states will include Arizona, California, Florida, Massachusetts, Nevada, New Hampshire, New York, South Dakota, Tennessee, Texas, Washington and Wyoming.

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Who qualifies for IRS Direct File

Residents of eligible states with a simple, straightforward return can qualify. The pilot will start with limited types of income, credits and deductions, IRS officials said.

While only certain taxpayers can use Direct File, the bilingual software includes built-in live chat support with IRS assistors.

The pilot will only accept Form W-2 wages, Social Security retirement income, unemployment earnings and interest of $1,500 or less. This means the pilot won’t include anyone with gig economy work or business income.

You must claim the standard deduction to use the Direct File pilot and the system only accepts a few credits — the earned income tax credit, child tax credit and credit for other dependents. The software also accepts tax breaks for student loan interest and educator expenses.

  • Flying Squid
    6•11 months ago

    Why does it take a lot more than 15 minutes? I’ll let this 30-page document from the IRS explain. https://www.irs.gov/pub/irs-pdf/p501.pdf

    And the U.S. population is 339.1 million, so you expect the tax code to revolve around less than 1% of taxpayers.

          • Flying Squid
            2•11 months ago

            I like how you’ve gone from ‘we can’t possibly do this’ to ‘other countries do it, but I don’t know how, so we can’t possibly do this.’

              • Flying Squid
                1•11 months ago

                Okay, if you weren’t saying this wasn’t doable, what on Earth was your point?

                  • Flying Squid
                    2•11 months ago

                    Yes, I know, you suggested that it couldn’t be done in the U.S. but your only answer as to why it can’t be done in the in the U.S. when it can be done in other countries is “I don’t know how it works there,” which is a cop-out. Your ignorance of how it works in other countries doesn’t mean it can’t work in the U.S.