IRS launches Direct File – free tax filing made easy!

TLDR:

• The IRS and the Treasury Department officially launched the Direct File pilot program for free tax filing in 12 states.
• Over 20,000 people have used the system, finding it easy and convenient.

The Internal Revenue Service and the Treasury Department have officially launched the Direct File pilot program for free tax-filing after initial testing in 12 states. The pilot program is available in states like Arizona, California, Florida, Massachusetts, Nevada, New Hampshire, New York, South Dakota, Tennessee, Texas, Washington, and Wyoming. The program, which offers ease and convenience to taxpayers, allows them to complete their returns in less than 30 minutes. Taxpayers can get refunds within 21 days when using direct deposit and receive support through live chat.

Direct File is designed for taxpayers with straightforward tax situations, such as those reporting income from jobs generating a Form W-2, claiming various tax credits, and deductions, as well as those who lived in the same state for the entire calendar year. The Treasury Department estimates that one-third of all federal tax returns filed could be prepared using Direct File, potentially benefitting 19 million taxpayers this filing season.

While the program has received support from some lawmakers, it has also faced opposition from commercial tax prep software companies like TurboTax maker Intuit and Republicans in Congress and state governments. Despite opposition, the IRS is moving forward with the program, aiming to provide a free, secure option for taxpayers to file directly with the IRS.