The Internal Revenue Service will limit tests of its Direct File program to 13 states during the 2024 tax season. Taxpayers can e-file federal tax returns for free under the program.
The IRS said taxpayer participation will also be limited by the types of income, tax credits and deductions that the product can initially support. The pilot will start with a small group of taxpayers will the program available to more as the season progresses.
The pilot will be available in nine states that do not have state income taxes: Alaska, Florida, New Hampshire, Nevada, South Dakota, Tennessee, Texas, Washington and Wyoming. Arizona, California, Massachusetts and New York have agreed to integrate their state taxes into the Direct File pilot.
Washington will participate for the state's application of the Working Families Tax Credit.
The IRS anticipates specific income types, such as wages on a Form W-2, and tax credits, like the Earned Income Tax Credit and the Child Tax Credit, will be covered by the pilot.
Bob Scott has provided information to the tax and accounting community since 1991, first as technology editor of Accounting Today, and from 1997 through 2009 as editor of its sister publication, Accounting Technology. He is known throughout the industry for his depth of knowledge and for his high journalistic standards. Scott has made frequent appearances as a speaker, moderator and panelist and events serving tax and accounting professionals. He has a strong background in computer journalism as an editor with two former trade publications, Computer+Software News and MIS Week and spent several years with weekly and daily newspapers in Morris County New Jersey prior to that. A graduate of Indiana University with a degree in journalism, Bob is a native of Madison, Ind