Overview

• 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.