The IRS is rolling out a free tax filing pilot in 13 states. Here’s where and who’s eligible.

• The IRS is rolling out its pilot of a free direct tax filing program.
• Taxpayers across 13 states might be eligible to try out the new program.
• It’s part of the IRS’s continued efforts to make tax filing simpler and more cost-effective.

The IRS is rolling out its own free direct tax filing pilot program — and some taxpayers will be able to use it as soon as the 2024 tax filing season.

These are the states where eligible taxpayers could be able to use the pilot program in 2024:

• Arizona
• California
• Massachusetts
• New York
• Alaska
• Florida
• New Hampshire
• Nevada
• South Dakota
• Tennessee
• Texas
• Washington
• Wyoming

Even in those states, eligible taxpayers will likely need to have fairly straightforward filing situations. Exact eligibility has not been determined yet, but the IRS anticipates that filers who report W-2 wages, or claim credits like the Child Tax Credit, will likely be eligible.

For instance, people reporting W-2 income, Social Security or unemployment benefits, or interest of $1,500 or under will likely be eligible.

Similarly, those claiming credits like the CTC and Earned Income Tax Credit should also likely be covered — and those with a standard deduction, alongside student loan interest and educator expenses, should also likely be able to participate.

Of course, the program is only a limited pilot. IRS Commissioner Werfel said in a press release that it does bring the US closer to the Treasury Department’s goal of making filing faster, easier, and inexpensive.

The IRS said that the online program will be an interview-based program available in Spanish and English, and mobile friendly — key aspects for lower-income filers, who have historically found themselves shut out of potential credits due to not having access to desktop computers.

Rick Heineman, a VP of communications at Intuit TurboTax, said in a statement to Insider that Direct File is “wholly redundant and will be of zero value to the vast majority of taxpayers.”

The Treasury has not yet provided a web address to access the program.

Source: Insider (businessinsider.com)