After weeks of testing, an electronic system for filing returns directly to the IRS is now available to taxpayers from 12 selected states.
The new system, called Direct File, is a free online tool. Taxpayers in the selected states who have very simple W-2s and claim a standard deduction may be eligible to use it this tax season to file their federal income taxes. The program will also offer a Spanish version, which will be available starting at 1 p.m. Eastern Time on Tuesday.
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Certain taxpayers in Florida, New Hampshire, Nevada, South Dakota, Tennessee, Texas, Washington, Wyoming, Arizona, Massachusetts, California and New York can participate. Direct File can only be used to file federal income taxes, taxpayers from states that require filing state taxes will need to do so separately.
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Additionally, for all taxpayers, if you make $79,000 or less, the IRS has a list of free tax software you can use. Full list here: https://apps.irs.gov/app/freeFile/browse-all-offers/
“This is competition for my product that costs taxpayers billions!”