IRS Direct File Program to Launch in 12 States on March 12

The IRS's new free tax filing tool, Direct File, will be available to eligible taxpayers in 12 states, aiming to simplify the filing process.

The IRS announced the Direct File program will fully open to eligible filers in 12 states starting March 12, more than a month before the tax filing deadline.
Eligibility for Direct File is based on state of residence, identification, and certain types of income and credits, excluding gig work and itemized deductions.
The program is currently in a pilot testing phase, with plans to expand final testing for new users to begin federal returns starting March 4.
Tax filing companies like H&R Block and Intuit have historically opposed free tax-filing options, with Intuit settling allegations in May 2022 for $141 million over misleading low-income customers.
The average federal tax refund for Americans this season as of Feb. 23 is $3,213, a 4.3% increase from last year.