In 2024, millions of United States residents will have an option to file their taxes faster, at no cost and in Spanish.
According to one Internal Revenue Service update (IRS), New York, Arizona, California and Massachusetts will integrate state e-filing tools with the IRS’s federal e-filing tool as part of a limited and scaled pilot called “Direct File,” which will start in 2024.
Taxpayers from nine other states without income tax: Alaska, Florida, New Hampshire, Nevada, South Dakota, Tennessee, Texas, Washington and Wyoming may also be eligible to participate in the pilot.
The state of Washington has also chosen to join the integration effort for the state’s implementation of the Working Families Tax Credit.
Who can use this tool
The IRS indicates that the tool will initially be available to a small group of taxpayers and then they will expand the service during tax season.
According to the IRS, eligibility to participate in the pilot program will be limited by the state in which the taxpayer resides and will be restricted to those with certain types of income, credits and deductions; that is, taxpayers with relatively simple declarations.
Although the details are not yet finalized, the IRS announced that it anticipates these requirements to be included:
Income report: W-2 wage income, Social Security and railroad retirement income, unemployment compensation, interest of $1,500 or less.
Credits: Earned income tax credit, Child tax credit, Credit for other dependents.
Deductions: standard deduction, student loan interest, educator expenses.
2023-10-18 15:14:56
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