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Tuesday, April 16, 2024

U.S. Department of the Treasury, IRS Launch Direct File Pilot Program

Direct File Now Available in Spanish, Open to All Eligible Taxpayers 24/7, New State-By-State Eligibility Numbers Released

 

WASHINGTON – Today, the U.S. Department of the Treasury and Internal Revenue Service (IRS) launched the new Direct File Pilot Program, including a new Spanish version of the free tax filing service following weeks of successful testing. The Spanish language version of Direct File will launch at 1:00PM on March 12, 2024. 

Direct File provides a free, secure option for taxpayers with simple tax situations in 12 states to file their taxes directly with the IRS. Direct File is easy to use, with no hidden junk fees, and works as well on a smartphone as it does on a laptop, tablet, or desktop computer. Direct File shows taxpayers the math so they can be sure that their return is accurate, and they are getting the refund they are entitled to. Live customer service support is also available for Direct File users. Initial users have saved hundreds of dollars and reported that the tool is simple and straightforward to use.  

Direct File was made possible by President Biden’s Inflation Reduction Act, which invested new resources in the IRS to allow the agency to provide world class service to taxpayers, including by developing new tools like Direct File that make it easier for Americans to file their taxes. This investment will also reduce the deficit by ensuring wealthy individuals, large corporations, and complex partnerships pay taxes owed.  

In conjunction with today’s launch, the Treasury Department is releasing new state-by-state eligibility estimates. While Direct File supports limited tax situations this Filing Season, a large percentage of American taxpayers have simple taxes and may be able to use Direct File. The Treasury Department estimates that one-third of all federal income tax returns filed could be prepared using Direct File, and that 19 million taxpayers may be eligible to use the tool this Filing Season. This includes 5.2 million in California, 3.8 million in Texas, 2.8 million in New York, and 2.4 million in Florida, and 1.1 million in Washington. Thousands of taxpayers across all 12 states have already successfully filed returns during the pilot’s testing phase. 

Examples of taxpayers who may be eligible to use Direct File this Filing Season include:

  • A parent with W-2 income that claims the Earned Income Tax Credit and Child Tax Credit.
  • A recent graduate with W-2 income, who pays student loan interest.
  • A retired senior citizen with Social Security income. 

“Thanks to President Biden’s Inflation Reduction Act, millions of American taxpayers have a free, secure option to file online directly with the IRS for the first time,” said Deputy Secretary of the Treasury Wally Adeyemo. “Direct File ensures taxpayers get their full refund by showing them the numbers and explaining credits they are eligible for. Our priority in launching this new service is to save taxpayers time and money they can spend on themselves and their families.”   

“Across his agenda, from lowering the cost of prescription drugs to bringing down overdraft fees and banning junk fees, President Biden is taking action to lower costs for Americans, saving them time and hard-earned money,” said Deputy Chief of Staff to the President Natalie Quillian. “The launch of Direct File is part of his overall vision to improve the day-to-day lives of hardworking Americans and leave no one behind.” 

“Direct File will offer millions of Americans a free and simple way to file their taxes, with no expensive and unnecessary filing fees and no upselling, putting hundreds of dollars back in the pocket of working families each year, consistent with President Biden’s pledge to lower costs,” said National Economic Advisor Lael Brainard.

“Thanks to President Biden’s relentless focus on improving government services for American families, for first time this year, many taxpayers will have the potential to use free, easy, and secure tax filing help from the IRS,” said Office of Management and Budget Deputy Director for Management Jason Miller. “OMB’s U.S. Digital Service was proud to partner with the IRS and technologists from across the Federal government to relieve the burden and the stress of filing taxes and ensure American families can access their benefits without paying a third party.”

State-by-state eligibility: 

State

Estimate of Potentially 

Eligible Taxpayers

California 5.2 million
Arizona 690,000
Florida 2.4 million
Massachusetts 850,000
New Hampshire 200,000
Nevada 480,000
New York 2.8 million
South Dakota 110,000
Tennessee 960,000
Texas 3.8 million
Washington 1.1 million
Wyoming 80,000

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Official news published at https://home.treasury.gov/news/press-releases/jy2172

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