IRS to launch Direct File pilot in filing season 2024

Direct File is a new tool that will provide taxpayers with the choice to e-file their federal tax return for free, directly with the IRS. It will be an interview-based service that will work as well on a mobile phone as it does on a laptop, tablet or desktop computer. Direct File will be available in English and Spanish in 2024 and is designed to meet taxpayers where they are and accommodate their needs. While the scope is still being finalized, IRS expects the taxpayers who will be eligible to participate in the pilot are low- to moderate-income working individuals, couples and families who take the standard deduction. The tool supports W-2 wages, Social Security/Railroad Retirement benefits, unemployment compensation and interest income of $1,500 or less. While Direct File will not file state tax returns for taxpayers who reside in a pilot state with a state income tax, once they have submitted their federal return, Direct File will direct taxpayers to the appropriate state filing system where they will be able to complete their state return. States with income tax that are partnering with the IRS on the Direct File pilot include Arizona. The IRS will introduce Direct File to the public in a phased manner, starting small and expanding the user base over time. An early phase of the pilot will be invitation-only, including during Presidents’ Day weekend, an early peak in filing volume. For more information, please visit: https://www.irs.gov/newsroom/irs-achieves-key-paperless-processing-initiative-goal-outlines-improvements-for-filing-season-2024