In early 2024, the IRS will launch a new Direct File tool that eligible taxpayers can use to file their federal returns for free. In collaboration with the states of Arizona and New York, Code for America will launch a companion filing tool that Direct File taxpayers in those states can use to easily file their state returns, too.
How will it work?
In 2024, eligible taxpayers will be able to navigate to an IRS webpage to use the federal Direct File tool. The tool, which will be available in English and Spanish, will ask taxpayers a series of questions to easily walk them through the steps of filing a tax return, like many existing software options.
Upon completing the federal return on the IRS website, taxpayers in Arizona and New York will have the option to export their data from Direct File to Code for America’s state tax filing tool. The state filing tool will ask a few more questions specific to state situations, and file the state tax return.
Can I use it?
More information will be released in coming months about the taxpayers who are eligible to use the federal Direct File tool and the Code for America state file tool in 2024. It is likely you will be eligible to use both tools if:
- You live in Arizona or New York all year, and do not have income from another state
- Your only income sources are wages, Social Security benefits, unemployment benefits, and/or up to $1,500 of interest
- You want to claim the Earned Income Tax Credit, Child Tax Credit, or Credit for Other Dependents
- You do NOT have self-employment income, including gig or contract work income
- You do NOT want to claim the Premium Tax Credit, the Child and Dependent Care Credit, or the American Opportunity Tax Credit or other educational credits
Additional details on eligibility to use Direct File are available from the IRS here.
When will it be available?
The federal Direct File tool and the Code for America state filing tool will be available for eligible users in early 2024. More information will be released in coming months.
Will it be free?
Yes. The state filing tool—like the IRS Direct File tool—will always be absolutely free for taxpayers to use.
How can I find out more?
This page will be updated over the coming months. More information will be released about where to find the IRS tool and when exactly it will be available. Additional information from the IRS is available here.
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