• 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.

  • helenslunch@feddit.nl
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    9 months ago

    A bill for what? How do they know what to bill you for if you don’t tell them where and how you made and spent your money?

    • Flying Squid@lemmy.world
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      9 months ago

      Are you saying your taxes aren’t taken out of your paychecks? Because they’ve always been taken out of mine. Seems like it’s pretty easy for them to bill you based on that. And they can send the bill to whatever address is on your W-2.

      • helenslunch@feddit.nl
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        9 months ago

        I mean I’m not a W2 employee so no.

        But when I was, this process typically only took about 15 minutes where you import the info from your tax form you’re provided by your employer and they ask additional questions that they don’t have answers to like what kind of healthcare you received or if you gained any children/dependents.

        • Flying Squid@lemmy.world
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          9 months ago

          Even if it only took you 15 minutes, and it sure takes a lot of people who get W-2s a lot more than 15 minutes… that’s 15 minutes too long. Why should you have to do the government’s job for it?

          • helenslunch@feddit.nl
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            9 months ago

            and it sure takes a lot of people who get W-2s a lot more than 15 minutes…

            To do what, exactly?

            that’s 15 minutes too long. Why should you have to do the government’s job for it?

            I don’t know how else you expect them to get the relevant information.

            • Flying Squid@lemmy.world
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              9 months ago

              The government should already have a record of how much you’ve been paid every year. Why do they not have that record in your case? Do you not declare your income in whatever job you have?

              • helenslunch@feddit.nl
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                9 months ago

                The government should already have a record of how much you’ve been paid every year.

                And where would they get that information?

                Do you not declare your income in whatever job you have?

                I already told you I don’t have a job. I’m self-employed.

                • Flying Squid@lemmy.world
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                  9 months ago

                  Oh well. Guess you don’t get to benefit from something everyone who isn’t self-employed should benefit from.

                  Nah, let’s leave the tax code impossibly complicated and easy for rich people to game on behalf of the handful of self-employed people in this country.

                  Tell you what, you keep doing your 15-minute taxes and the rest of us won’t have to waste those 15 minutes. How’s that?

    • OldWoodFrame@lemm.ee
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      9 months ago

      All info on the tax forms you use for your taxes could just be sent to the government instead, and they can calculate your taxes. That is how it works in most other countries.