IRS’ Free Direct-File Tool Dubbed ‘A Great Thing’ — 4 Ways It Simplifies the Process
Written by
Yaël Bizouati-Kennedy
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Tax season starts Jan. 29 and this year the Internal Revenue Service (IRS) is offering a free new option available to some taxpayers, to file their taxes in an easier way.
The new Direct File tool is being rolled out in phases and is expected to be more widely available in mid-March, according to the IRS. Its aim is to make filing easier and free.
“The U.S. tax system is a remarkable abnormality. It is so, so complex,” Bill Harris, the former CEO of PayPal and TurboTax parent company Intuit, told Fortune. “We could have a radical reformation of the tax laws in this country. We should.”
For now, it is available only to eligible workers in 12 states, including Arizona, California, Florida, Massachusetts, Nevada, New Hampshire, New York, South Dakota, Tennessee, Texas, Washington and Wyoming, according to the IRS.
“First, we want to be clear – the Direct File pilot is just another option for filing your taxes. No one is required to use Direct File, and it does not replace any of the existing options for filing,” the IRS noted in a statement.
The tool simplifies the tax filing process in several ways, according to the agency:
Free Federal Tax Return Filing
As CNN noted, unlike the IRS’ Free File Program which is only available to taxpayers who earn $79,000 or less, there is no income threshold.
Step-by-Step Guidance
As the IRS noted, Direct File walks you through the processes of preparing your return, by following a step-by-step checklist that guides you through the filing process and you can easily see your progress.
“When you finish, Direct File shows you a clear summary of your 2023 federal taxes from the information you entered. When you submit your return, Direct File will send email confirmation of the submission, and another email when the IRS accepts your return for processing,” it added.
Real-Time Online Support
The IRS said that as some taxpayers may have questions, real-time live chat support from an IRS customer service representative will be available while you’re filing your return, with an option for a follow-up phone call from an IRS assistor where needed.
Mobile-Friendly Access
“There is no software to buy or install. It’s mobile-friendly, which means it will work as well on a phone or tablet as it does on a computer. It’s available in English and Spanish, easy to use, secure, accessible, and free,” according to the IRS.
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