IRS Launches Free 'Direct File' Service in 12 States

The new online system aims to simplify tax filing for eligible taxpayers, offering a streamlined process for those with simple tax situations.

The IRS has launched a new free 'Direct File' service for simple tax returns, now available in 12 states including Arizona, California, and New York.
Qualified filers must have a Social Security number or Individual Taxpayer Identification Number, and the service supports only standard deductions.
Direct File is designed for W-2 employees and those with Social Security or unemployment income, excluding other types of income like capital gains or rental income.
The service is part of the Inflation Reduction Act of 2022, aiming to make tax filing more accessible and prevent taxpayers from missing out on credits like the EITC and Child Tax Credit.
IRS service levels have improved, with a 92% level of service for the 2024 filing season and a new customer call back option reducing wait times.