Tax season approaches like a monster under the bed — you know it’s there, but the dread sets in as April creeps closer. This year, the IRS is throwing a tiny life raft in the form of a new Direct File tool. Announced back in October, it’s a free online program designed to simplify tax filing with step-by-step guidance.
Hold on to your hats though, because “simplify” has limits. You’ll still need to figure out what you owe (thanks, tax code!), but Direct File should make the process smoother and potentially save you money on filing fees. Here’s the catch: it’s not a magic solution for everyone.
Which states and do you qualify
For now, it’s a pilot program limited to residents of 12 states with straightforward tax situations. Think basic W-2s and standard deductions. Some other common things like Social Security income, child tax credit, and student loan interest might be included too. The IRS has a full list of requirements and a tool to check your eligibility.
The lucky states enjoying this pilot program are:
- Arizona
- California
- Florida
- Massachusetts
- Nevada
- New Hampshire
- New York
- South Dakota
- Texas
- Washington
- Wyoming
Residents in the last four states also need to file state returns, and Direct File will help them with that too. Alaska was supposed to be part of the program, but it seems they got bumped since last year.
