Direct File has many limits, but nearly 19M people in 12 states may be eligible.

“Direct File provides a free, secure option for taxpayers with simple tax situations in 12 states to file their taxes directly with the IRS,” the Treasury Department said. “Direct File is easy to use, with no hidden junk fees, and works as well on a smartphone as it does on a laptop, tablet, or desktop computer. Direct File shows taxpayers the math so they can be sure that their return is accurate, and they are getting the refund they are entitled to.”

You can check whether you qualify to use the system at directfile.irs.gov. Based on the eligibility restrictions in the IRS program, the Treasury Department said it “estimates that one-third of all federal income tax returns filed could be prepared using Direct File.”

But there are many limits that would prevent taxpayers from using the system.

What you can and can’t file

  • Fushuan [he/him]English
    4•3 months ago

    Here in a Spanish province the app had the correct information prefilled with my job changes, the stupid 50 euros I earned from the gamestop craze and all the special savings accounts that were dax deductible. I only had to add the special rent deduction (amount paid and % of that amount that’s was mine), and the app calculated the amount that I was to be deducted from that and my age.

    It’s great, in has an explanation of all the deductions, it lets you edit everything before submitting, and it’s free.

    • @PriorityMotif@lemmy.worldEnglish
      2•3 months ago

      That’s basically what free filing is in the US except you have to input your personal information and the information on the tax receipt called a W2 that you receive from your employer. They even call the basic tax form the 1040ez. Then that information automatically populates into your state tax form. Yes, we have to pay federal and state taxes separately.