• 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.

    • Flying Squid@lemmy.world
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      10 months ago

      No. I answered your question. They bill you based on your W-2. Except for the handful of self-employed people like yourself who will have to do it the hard way.

      • helenslunch@feddit.nl
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        10 months ago

        I answered your question. They bill you based on your W-2

        Why does it take you “a lot more than 15 minutes” to enter your income?

        Except for the handful of self-employed people like yourself

        You mean 10M Americans?

          • helenslunch@feddit.nl
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            10 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@feddit.nl
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                9 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
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                  9 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@feddit.nl
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                    9 months ago

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