The IRS is expanding its free tax filing program, Direct File, nationwide after a successful pilot, according to the Department of Treasury. Treasury Secretary Janet Yellen announced on May 30 that starting next year, Direct File will be available to taxpayers in all 50 states in the U.S.
“After a successful pilot, we are making Direct File permanent for all 50 states to offer a free filing option to residents,” said Yellen.
During its initial launch last tax season, the IRS opened Direct File in 12 pilot states for a limited number of taxpayers with eligible simple tax returns. California, Florida, New York, Texas, and eight other states were included in the pilot program.
Eligible filers were taxpayers with simple filings, such as those with Form W-2 wages and Social Security retirement income, who claimed a standard deduction. The threshold for a single filer was set to $13,850, and for married couples filing jointly, it was $27,700 for the fiscal year 2023.
Last month, the IRS announced that more than 140,000 taxpayers filed their returns using Direct File. The tax preparation fees saved from using Direct File are estimated to be $5.6 million.
The IRS plans to release further details about its expansion later in the year. “We are exploring ways to make more tax filers use the program next year and beyond,” said IRS Commissioner Danny Werfel.
BY HOONSIK WOO [woo.hoonsik@koreadaily.com]
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