Free IRS Federal Tax Filing Available to Eligible Taxpayers in the Upcoming Year
Filing taxes is often seen as a daunting task, but the IRS is taking steps to make it a bit easier for some taxpayers in the upcoming year with the introduction of its new free filing program.
The IRS is embarking on a limited-scope pilot version of Direct File, which is currently being rolled out in select states. This pilot program aims to assess customer support and technology requirements as the IRS prepares to eventually expand the program nationwide. Eligible taxpayers in 13 states will have the opportunity to file their 2023 federal tax returns directly through the IRS at no cost, as outlined in a recent news release.
So, who qualifies for IRS Direct File in 2024? Eligibility for the IRS Direct File pilot program is contingent on several factors, including your state of residence, income, and the tax credits and deductions you claim.
In general, the program is geared towards taxpayers with straightforward tax returns, specifically those who file IRS Form 1040 without attaching additional forms and schedules. However, the pilot program is expected to encompass key elements of tax returns, such as Form W-2 earnings, Social Security and railroad retirement income, unemployment income, and interest income of up to $1,500.
Four states have agreed to participate in the Direct File pilot program for both federal and state taxes in 2024. These states are:
- Arizona
- California
- Massachusetts
- Nueva York
Additionally, taxpayers in nine other states may also be eligible for this program, given that their states do not impose an income tax. These states are:
- Alaska
- Florida
- Nuevo Hampshire
- Nevada
- South Dakota
- Tennessee
- Texas
- Washington
- Wyoming
The IRS Direct File program seeks to simplify the tax-filing process for eligible taxpayers, making it more convenient and cost-effective. While not everyone may qualify for this program, it represents a step forward in the IRS’s efforts to streamline tax-related services and enhance the overall taxpayer experience.