30M will be eligible for IRS free Direct File in 2025
BY: Medora Lee
USA Today
..... The IRS said it's doubling the number of states to 24 that will have access to its Direct File system in the upcoming tax season.
.....
Direct File, piloted last year [2024] in a dozen states, is the IRS's free and secure option for Americans with simple situations to file their taxes. The software's available in Spanish and works on a smartphone, tablet or computer. Taxpayers can see the math used to be sure that their return is accurate and they are getting their maximum refund, the IRS said.
..... Direct File has the potential to save Americans tens of millions of dollars in filing fees in the upcoming filing season, [2025]
Treasury Secretary Janet Yellen said in a release. The Treasury estimates the average American taxpayer spends $270 and 13 hours filing their tax return.
..... "Years ago, it may have seemed like a people dream, but we never gave up the fight and now people in 24 states can file their taxes Online, for free, directly with the IRS," Senator Elizabeth Warren, D-Massachusetts, said in a statement. "that's right - no more shelling out $150 for TurboTax or H&R Block. This is what it looks like for the government to stand up to big corporations and put money back in the hands of people.
.....
Americans in these states will be eligible for free Direct File next year, [2025] the Treasury said: Alaska, Arizona, California, Connecticut, Florida, Idaho, Kansas, Maine, Maryland, Massachusetts, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Oregon, Pennsylvania, South Dakota, Tennessee, Texas, Washington, Wisconsin and Wyoming.
..... Treasury said the toll also will cover additional types of income, Credit for Other Dependents, Child and Dependent Care Credit, Premium Tax Credit, Retirement Savings Contributions credit, and the deduction for health Savings Accounts.
..... Those who itemize their tax returns with mortgage interest and some other deductions will not be eligible to use the system yet.
.....
Customers service will also improve, with a new chat bot to provide guided help on eligibility checker, Treasury said.
..... That's in addition to Live Chat, which will again be available in English and Spanish and will have enhanced authentication and verification features to allow customer service representatives to provide more information.
..... Taxpayers will also be able to request a callback where IRS customers service representative scan provide technical support and answer basic tax questions in English and Spanish, Treasury said.
..... In tax season 2024, more than 140,000 taxpayers in a dozen states field their taxes using Direct File, according to the IRS.
..... More than 90% of respondents rated their experience with District File as "excellent' or "above average" in a GSA Touchpoints survey of 11,000 users, the IRS said. Users also said they field their taxes in an hour or less, it said.
..... Customers service also raked high, with 90% of survey respondents who use customer support saying their experience was "excellent" or "above Average," the IRS said.