- 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.
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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.
And where would they get that information?
I already told you I don’t have a job. I’m self-employed.
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?
You keep complaining instead of answering my question.
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.
Why does it take you “a lot more than 15 minutes” to enter your income?
You mean 10M Americans?
Why does it take a lot more than 15 minutes? I’ll let this 30-page document from the IRS explain. https://www.irs.gov/pub/irs-pdf/p501.pdf
And the U.S. population is 339.1 million, so you expect the tax code to revolve around less than 1% of taxpayers.
That was a Socratic question. I know the answer. It’s because they need information they don’t have to properly assess your taxes.
I don’t expect it to “revolve around” anyone. You were the one who brought my personal taxes into question.
What information?
And how is it that many other countries are able to accomplish what I’m talking about?
https://en.wikipedia.org/wiki/Pay-as-you-earn_tax
The information you give them when you complete your taxes. Have you not paid taxes before?
I’ve no idea, that’s a good question for someone who lives in those places.