IRS to introduce free direct file pilot program for taxpayers

As the tax season officially kicked off this week, the IRS is set to introduce Direct File, a free filing software for certain taxpayers.

The software, described as “simple, secure, and free” by the Treasury Department, comes in response to a feasibility report that showed 75% of taxpayers desire a free IRS-provided filing system.

The program is rolling out in stages and is initially being offered to government workers. It will extend to 12 states by mid-March to a limited number of taxpayers.

The Direct File initiative allows eligible individuals to calculate and submit their returns directly to the government, bypassing commercial tax preparation software.

Qualifications and features of IRS Direct File
Residents in eligible states with straightforward returns qualify for Direct File. The pilot focuses on W-2 wages, Social Security income, unemployment earnings and interest below $1,500.

Gig workers are not included. The software offers live chat support and bilingual assistance and covers credits like earned income, child tax, and more. 

The program is limited to those claiming standard deductions.