With one week until the federal tax deadline, the IRS has released an update for Direct File program. Find out more about it!

As the federal tax deadline approaches (April 15th, 2024), the IRS has released an update for the agency’s free tax filing program called Direct File. Back in March 12th, the pilot program in Direct File became available to select filers in 12 states, allowing detail import in order to verify returns before filing.

When filing electronically, taxpayers typically validate their return with the prior year’s adjusted gross income (AGI) or a temporary PIN. Tax software usually enters this information for returning users, but newcomers have to add it manually. According to the Treasury Department, this step was a major hurdle in successful Direct File submissions.

But now, with the update, these verification details needed can be directly and automatically imported from the IRS. This new import function aims to reduce the common error previously stated. Treasury Official said that Direct File will remain open for rejected returns until April 20th.

”This important update will allow Direct File users to take advantage of information the IRS already has to simplify the filing process even further”, said Bridget Roberts, Direct File Leader at the IRS.

The 12 states that had access to IRS’ Direct File pilot were: Arizona, California, Florida, Massachusetts, Nevada, New Hampshire, New York, South Dakota, Tennessee, Texas, Washington and Wyoming.

Who is Eligible for IRS’ Direct File?

Here are the general eligibility criteria:

• You must live in one of the 12 states where it is available;
• You must have a Social Security number (SSN) or Individual Taxpayer Identification Number (ITIN) for yourself and any spouse or dependents you claim. If applicable, an Adoption Taxpayer Identification Number (ATIN) for dependents you claim. And, current driver’s license, state identification, passport, or passport card;
• This program accepts: Income from an employer (Form W-2); Unemployment compensation (Form 1099-G); Social Security benefits (Form SSA-1099); $1500 or less in interest income or US savings bonds or Treasury obligations (Form 1099-INT, boxes 1 and 3);
• You’re eligible if you have: Health insurance from your employer; Medicare; Veterans Affairs health care; Private health insurance you pay for out of pocket; Your state’s Medicaid or Children’s Health Insurance Program (CHIP);
• You’re eligible if you only want to claim these tax credits: Child Tax Credit; Earned Income Tax Credit; Credit for Other Dependents.

How To Use It?

1. Visit the IRS’ Direct File website and click on “Check my Eligibility” or “Sign In”;
2. Follow the instructions to input any requested informations;
3. Carefully review your return before electronically submitting it.

Additional Tips

• Gather Documents: ensure you have all the necessary documents readily available, such as W-2s, 1099s, receipts for deductions, and proof of childcare expenses (if claiming the Child Tax Credit);
• File Early: don’t wait until the last minute. Filing early allows ample time for processing and helps avoid the potential for late-filing penalties;
• Consider Professional Help: if your tax situation is complex or you have questions, consult a qualified tax professional for guidance.

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