The much-anticipated free tax filing software created by the government will only be open to users in certain states to start, and won’t cover everyone’s tax situations.
In 2024, some taxpayers will have for the first time a new filing option that many advocates have been demanding for years: A free tax preparation software program, like TurboTax or its competitors, created by the IRS.For its first filing season, the program, Direct File, will be available in only 13 states and won’t be suitable for all taxpayers, the IRS announced on Tuesday. If you want to be one of the first to try it out, you’ll need a special invitation.
Selected taxpayers will get invitations around mid-February, an IRS official said, speaking on the condition of anonymity to discuss the program before Tuesday’s announcement. If all goes well with those early filers, the official said, the program will gradually open up to more users. By the time of the tax filing deadline in April, the IRS’s goal is that the program will be open to anyone who wants to use it in the 13 eligible states. The IRS said in an email Tuesday that the agency anticipates hundreds of thousands of users.
However, the agency is open to including any state willing to participate and anticipates that more states will join in the coming years if the 2024 filing season is a success and Direct File continues, the official added. There are no eligibility restrictions based on income. The Direct File software has some limitations: It won’t allow users to itemize deductions — an option more than 10 percent of taxpayers elect — and will allow only certain tax credits and certain forms of income. Anyone who claims a credit for child-care expenses, for example, or who has interest income above $1,500 will not be able to use the free software.
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