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Newsweek
The IRS is launching a pilot plan, known as Direct File, that will offer a free way to submit taxes for U.S. workers. In December, the agency published its plans for an in-house filing system that taxpayers can use to submit their federal tax returns at no cost.
Residents of 12 states that meet certain income criteria will be able to try the new service. To qualify, filers need to opt for the standard deduction and maintain income within the confines of wages documented on Form W-2, Social Security or unemployment, along with interest income not exceeding $1,500.
The pilot will be available only to taxpayers living in Arizona, California, the District of Columbia, Florida, Massachusetts, Nevada, New Hampshire, New York, South Dakota, Tennessee, Texas, Washington and Wyoming.
"This is a critical step forward for this innovative effort that will test the feasibility of providing taxpayers a new option to file their returns for free directly with the IRS," IRS Commissioner Danny Werfel said.
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TurboTax Faces Major Threat to Its Business
The Internal Revenue Service (IRS) plans to roll out a free way to file federal taxes, much to the chagrin of tax preparation firm TurboTax.The IRS is launching a pilot plan, known as Direct File, that will offer a free way to submit taxes for U.S. workers. In December, the agency published its plans for an in-house filing system that taxpayers can use to submit their federal tax returns at no cost.
Residents of 12 states that meet certain income criteria will be able to try the new service. To qualify, filers need to opt for the standard deduction and maintain income within the confines of wages documented on Form W-2, Social Security or unemployment, along with interest income not exceeding $1,500.
The pilot will be available only to taxpayers living in Arizona, California, the District of Columbia, Florida, Massachusetts, Nevada, New Hampshire, New York, South Dakota, Tennessee, Texas, Washington and Wyoming.
"This is a critical step forward for this innovative effort that will test the feasibility of providing taxpayers a new option to file their returns for free directly with the IRS," IRS Commissioner Danny Werfel said.
More:
