• 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.

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.

    • helenslunch
      link
      fedilink
      arrow-up
      1
      arrow-down
      4
      ·
      5 months ago

      That was a Socratic question. I know the answer. It’s because they need information they don’t have to properly assess your taxes.

      you expect the tax code to revolve around less than 1% of taxpayers.

      I don’t expect it to “revolve around” anyone. You were the one who brought my personal taxes into question.

        • helenslunch
          link
          fedilink
          arrow-up
          1
          arrow-down
          3
          ·
          5 months ago

          What information?

          The information you give them when you complete your taxes. Have you not paid taxes before?

          And how is it that many other countries are able to accomplish what I’m talking about?

          I’ve no idea, that’s a good question for someone who lives in those places.

          • Flying Squid@lemmy.world
            link
            fedilink
            arrow-up
            3
            arrow-down
            1
            ·
            5 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.’

            • helenslunch
              link
              fedilink
              arrow-up
              1
              ·
              5 months ago

              Well when you literally just fabricate things that I’ve said, it can be very easy to confuse yourself.

                • helenslunch
                  link
                  fedilink
                  arrow-up
                  1
                  ·
                  edit-2
                  5 months ago

                  I just said I don’t know how they do it so I can’t comment on it. I can only comment on the American tax system as an American taxpayer.

                  • Flying Squid@lemmy.world
                    link
                    fedilink
                    arrow-up
                    2
                    ·
                    5 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.