As tax season approaches, Democratic and Republican lawmakers are divided on the future of Direct File, the IRS’s free tax filing program.
Direct File launched its pilot phase in 2024, serving a limited number of taxpayers in 25 states and processing around 140,000 returns during the mid-season period. The pilot was limited to processing simple returns in 12 states.
Republican lawmakers have criticized the program, calling for the end of the free filing service. Their opposition has raised questions about Direct File’s future, especially if the GOP retains control of the White House, Senate, and House of Representatives.
The IRS Direct File Arrives at New York: Now in a total of 25 states
Governor Kathy Hochul announced that New Yorkers can now file their state and federal income taxes online for free.
This initiative is powered by Direct File, a user-friendly self-service tool that simplifies tax filing. It began as a pilot program in 2024, in collaboration with the IRS, and was initially available to a small group of taxpayers with simple returns.
Governor Hochul praised the program’s success, noting that 96% of early participants had positive experiences with the tool. This feedback has paved the way for future improvements and expansions.
The program’s eligibility criteria will be expanded in 2025, to include a broader range of tax credits and income types. The expansion aims to make tax filing more accessible and affordable for New Yorkers.
To see if you qualify for Direct File, visit the Tax Department’s website. Along with Direct File, the Tax Department offers additional e-file options, allowing you to file your taxes for free and with ease.
This initiative not only simplifies the tax filing process, but also enables New Yorkers to take control of their finances, making tax season less intimidating.
Last year’s Direct File pilot program included Arizona, California, Florida, Massachusetts, Nevada, New Hampshire, New York, South Dakota, Tennessee, Texas, Washington, and Wyoming. Alaska, Connecticut, Idaho, Kansas, Maine, Maryland, New Jersey, New Mexico, North Carolina, Oregon, Pennsylvania, and Wisconsin have joined the 2025 season as participating states.
How to use the IRS Direct File for free
The IRS Direct File program allows eligible taxpayers to file federal income taxes without using third-party services. It is free and simple. The program is limited to specific taxpayers and states, but those who qualify can benefit from a simple and free filing process. Here’s a step-by-step guide to utilizing Direct File efficiently:
1. Check Your Eligibility
Before using Direct File, ensure you meet the program’s requirements. Eligibility is typically based on tax return complexity and state of residence. The program is currently available to taxpayers who file simple returns in a limited number of states. Check the IRS website for the most recent information on eligibility requirements.
2. Gather Your Documents
Collect all necessary tax documents, such as W-2 forms, 1099s, and records for deductions or credits. Having these documents ready ensures a smooth filing process and reduces the possibility of mistakes.
3. Access the Direct File Portal
Go to the IRS website and find the Direct File section. You’ll find detailed instructions and resources to help you get through the filing process. If you’re new to Direct File, the portal offers helpful tools and support to get you started.
4. Create an Account or Log In
If this is your first time using Direct File, you must create a secure account with the IRS. This includes providing basic personal information and verifying your identity. Returning users can log in using their existing credentials.
5. Enter Your Information
Enter your income, deductions, and credits as prompted. The system will guide you through each step, ensuring that all required fields are completed. Direct File also performs basic calculations to reduce errors and increase your refund.
6. Review and Submit
After entering all necessary information, carefully review your return. Before submitting your document, use the Direct File system to double-check for errors and make changes. Once you’re satisfied, submit your return electronically. When the IRS accepts your application, you will receive an email confirmation.
7. Track Your Refund
After submitting your return, use the IRS’s “Where’s My Refund?” tool to track its status. Direct File ensures that your return is processed quickly, which often leads to faster refunds than paper filing.
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