Posted on 01/29/2024 1:31:17 PM PST by re_tail20
As the tax season kicks off next week, Americans have several free filing options — and some taxpayers will soon qualify for a new offering from the IRS.
Known as Direct File, the agency’s free filing software pilot will begin as an invitation-only service for a group of government workers before rolling out to certain taxpayers in 12 states by mid-March.
The software is “simple, secure and free,” Laurel Blatchford, the U.S. Department of the Treasury’s chief implementation officer for the Inflation Reduction Act, said in a statement Thursday.
Direct File comes after a feasibility report authorized by the Inflation Reduction Act. The report found nearly three-quarters of taxpayers expressed interest in a free IRS-provided filing system.
In 2023, individual U.S. taxpayers spent an average of $150 to prepare and file returns, according to the Treasury Department.
The IRS on Thursday provided a Direct File demo to CNBC and other media outlets. Here’s what taxpayers can expect for the upcoming season.
The IRS Direct File pilot intentionally starts with a limited group of taxpayers with relatively simple filings, according to IRS officials.
“We’re starting small: as the filing season begins, the pilot is undergoing continuous testing with taxpayers, so we can identify and resolve issues,” IRS Commissioner Danny Werfel said in a statement Thursday.
Eligible states will include Arizona, California, Florida, Massachusetts, Nevada, New Hampshire, New York, South Dakota, Tennessee, Texas, Washington and Wyoming.
While Direct File won’t cover state returns, Arizona, Massachusetts and New York residents can immediately continue to state filing by importing Direct File data. California residents will use CalFile with some pre-populated information.
“We will be working closely with the 12 pilot states in this test run, which will help us gather information about the future direction of the Direct File program,” Werfel said.
Residents of...
(Excerpt) Read more at cnbc.com ...
Single or married total AGI, I wonder?
“ In 2023, individual U.S. taxpayers spent an average of $150 to prepare and file returns…”
Holy cow! I spent a third of that for federal and state returns, including a state e-file fee.
Total AGI up to $79,000. Filing status is irrelevant.
And the telephone support # will send you to the nether regions of voicemail hell.
Is this unfair Govt competition vs TurboTax and H&R?
Thank you.
I’m a paper-filing Luddite.
Spent about $2.00 in postage total for Federal, State, and Local.
“Last thing I’m going to do is let the IRS see my taxes.”
uh, the IRS sees EVERYONE’S taxes when they are filed, regardless of HOW they are filed ... if you file, then the IRS sees your taxes, lock stock and barrel ... the only way for the IRS to NOT see your taxes is to NOT file at all ...
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