The taxpayers who can file federal tax returns for free with the IRS in 2024: Who is eligible?
A new trial from the IRS means residents in four states can file their taxes simply, online, and totally free with the aim of a nationwide roll-out.
Taxpayers in 12 states, where it is being piloted, can use the new IRS online tool to file their tax returns this year. Direct File is a mobile-friendly, interview-based service that works on all devices.
You can use Direct File for free to electronically submit your 2023 income tax declaration directly with the IRS. The service also offers a text chat support with Direct File customer service representatives for those who have questions while filling out their tax return. The service is available daily from 7 am to 10 p. ET, but you can use the Direct File tool 24/7.
“This is a critical step forward for this innovative effort that will test the feasibility of providing taxpayers a new option to file their returns for free directly with the IRS,” said IRS Commissioner Danny Werfel.
The states in which the trial will be active
- Arizona
- California
- Florida
- Massachusetts
- New Hampshire
- New York
- Nevada
- South Dakota
- Tennessee
- Texas
- Washington
- Wyoming
“In this limited pilot for 2024, we’ll be working closely with the states that have agreed to participate in an important test run of the state integration. This will help us gather important information about the future direction of the Direct File program,” he added.
Who is eligible?
For a start you will need to be resident in one of those states listed above. The trial will only cover individual federal tax returns. It will also only be available for simple returns, meaning only filers submitting Form 1040 without extra attachments can use Direct File.
In order to see if you are eligible you can use the eligibility checker. “Once you start your return you can pause and sign back into IRS Direct File securely to complete it any time before the April filing deadline,” the IRS assures. Most taxpayers will only be able to use the service until the 15 April deadline. However, those in Massachusetts have until April 17 to file due to the Patriots’ Day and Emancipation Day holidays.
The problem of paid tax returns in the US
Currently, the IRS has a Free File Tool Kit and more than 97 million people are eligible for the help. However, this is restricted to people earning $54,000 or less. Despite this, only 3% of filers use this service.
Though everyone needing to file a tax return, they are neither easy to do nor cheap to have someone else do for you. Taxpayers must either do it by hand or pay someone else to do it.
According to Nerdwallet.com, people who paid to file federal tax returns in 2021 typically spent $150 each. Were this process to be made free by the IRS in future (currently people pay private companies) then that is a fair amount of money freed up for people.