• 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.

As the tax season kicks off next week, Americans have several free filing options — and some taxpayers will soon qualify for a new offering from the IRS.

Known as Direct File, the agency’s free filing software pilot will begin as an invitation-only service for a group of government workers before rolling out to certain taxpayers in 12 states by mid-March.

Direct File comes after a feasibility report authorized by the Inflation Reduction Act. The report found nearly three-quarters of taxpayers expressed interest in a free IRS-provided filing system.

Eligible states will include Arizona, California, Florida, Massachusetts, Nevada, New Hampshire, New York, South Dakota, Tennessee, Texas, Washington and Wyoming.

  • SuperDuper@lemmy.world
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    1 year ago

    Another tip: turbo tax and other tax preparation software charges you money only to file your taxes. You can fill out all of the information on their website for free as long as you don’t file, then use all of the numbers they crunch as a guide when you do your own taxes manually. Basically, you know what all of the numbers are supposed to come out to based on what turbo tax calculated, so if you’re getting something else when you prepare your own taxes you know there’s some mistake in that section that needs to be corrected.