Tax Filing Tips and Updates

Tax season is in full swing. With just about a month until the official tax filing deadline on April 15, if you don’t have a plan to file your taxes, you may want to consider the IRS’ latest digital initiative – Direct File. 

Over the last few weeks, the IRS has piloted Direct File, and it’s now available for eligible taxpayers to use – for free – in 12 states. 

“A team of experts from across the government built and tested the Direct File pilot to give taxpayers an easy, accurate, free way to file their taxes online directly with the IRS,” said IRS commissioner Danny Werfel.

“Our goal with the Direct File pilot is to help people meet their tax obligations as easily and quickly as possible. We developed Direct File from the beginning with taxpayers’ help, and we’ll continue to talk to taxpayers about their experience to learn more about what taxpayers want for future digital services.”

What to know about Direct File

The Direct File system is a step-by-step guide for taxpayers to accurately file their taxes online. There’s no rush to get through the entire return in one sitting – users can save their progress and return to it at any time. 

Direct File also has a chat feature, so taxpayers can talk directly with tax professionals if they have any questions throughout the process. 

“Many taxpayers we’ve heard from filed their taxes in less than 30 minutes using Direct File and praised it as an easy, no cost tax filing experience,” Werfel said. 

To be eligible to use Direct File, taxpayers must fall into these categories: 

• Report income earned from jobs that generate a W2

• Claim Earned Income Tax Credit, Child Tax Credit, and the Credit for Other Dependents

• Claim the standard deduction and deductions for educator expenses and student loan interest

• Lived in the same state for the entire calendar year of 2023

Additionally, Direct File is currently only available in 12 states, including: Arizona, California, Florida, Massachusetts, Nevada, New Hampshire, New York, South Dakota, Tennessee, Texas, Washington State, and Wyoming. 

Direct File will guide taxpayers through their federal returns. Then, for states that have income tax, taxpayers will be led to a state-sponsored income tax tool. 

Direct File is available to access on computers, tablets, or smartphones, and taxpayers can file in English or Spanish. First-time users will have to verify their identity through ID.me, ensuring a safe and secure tax filing process. 

With just over two months until the official tax filing deadline – Monday, April 15, 2024 – it’s time for taxpayers to make a plan to file their 2023 tax returns. 

For many consumers, that process might just come at no cost. 

The IRS explained that eligible taxpayers can take advantage of several resources designed to eliminate the cost associated with filing taxes – regardless of whether they choose to file on their own or use a tax preparer. 

Free programs

Here’s a look at some of the ways taxpayers can file free this season, including the eligibility requirements: 

• IRS Free File: To utilize this program, taxpayers must have had an adjusted gross income of $79,000 or less in 2023. This resource is one that consumers use on their own – tax preparers have made their programs available online for free, and taxpayers can even use their phones or tablets to file their taxes at no cost. 

• IRS Direct File: This program is currently in its pilot phase, as it’s the IRS’ latest way to file taxes for free. With Direct File, taxpayers will follow a step-by-step guide to learn more about their taxes, and free support from the IRS is available weekdays from 7 a.m. to 10 p.m. Currently, the pilot is only available in a dozen states, and only consumers with simple tax returns are eligible. The IRS plans to expand this program based on the information learned from this tax season. More information on availability can be found here. 

• Volunteer Income Tax Assistance (VITA): This program is for taxpayers with disabilities, limited English-speaking taxpayers, and those who make under $60,000 per year. Typically, consumers can access this program at popular community centers, like malls, libraries, schools, and more. 

• Tax Counseling for the Elderly (TCE): Seniors who utilize this service will meet with tax preparers who specialize in filing for older taxpayers. They’re trained to answer questions about pensions, retirement, and other related areas. 

• MilTax: Military veterans are eligible for free tax filing through MilTax. Through the Department of Defense, vets can file their federal tax returns and up to three state returns at no cost. 

• Free Fillable Forms: This free program is for taxpayers who make an adjusted gross income of $79,000 or higher. However, there is no formal assistance – taxpayers are responsible for choosing and accurately filling out the appropriate forms. This program is also only available for federal tax returns – not state returns, and taxpayers can’t make any changes to their returns once they’re submitted and processed. 

Taxpayers can mark their calendars for the official start of tax season: January 29, 2024.

The Internal Revenue Service (IRS) announced that 2023 tax return filing opens in just a few weeks. Once filing opens, consumers have until April 15, 2024, to get their returns submitted to the IRS or to request an extension. 

“As our transformation efforts continue to take hold, taxpayers will continue to see marked improvement in IRS operations in the upcoming filing season,” said IRS commissioner Danny Werfel. “IRS employees are working hard to make sure that new funding is used to help taxpayers by making the process of preparing and filing taxes easier.” 

Tools and resources from the IRS

The IRS said its main goal this year is to make the filing process easier for consumers. They’ve expanded on some of the most helpful resources and are also introducing new resources this tax season, including: 

• Updates to the “Where’s My Refund?” tool, which will allow taxpayers to get more detailed descriptions of the processing of their refunds. Rather than generic messaging that doesn’t provide much information, the updates will make it possible to see more than just a “check back later” message. The IRS has also updated the resource to work better on mobile devices. 

• The IRS Online Account has been updated to include new features, like scheduling payments, canceling payments, validating bank accounts, a chat for questions, and the ability to revise payment plans. 

• Taxpayer Assistance Centers, which guide taxpayers through the filing process and are open for questions and concerns about filing, are set to have expanded hours this tax season. 

• The IRS’ toll-free helpline has more employees, which will cut down on wait times, making it easier for consumers to get their questions answered faster. 

• Direct File is a new way for taxpayers to file their taxes for free directly through the IRS. Direct File will be available starting in March, and consumers can check their eligibility, including participating states, in the coming weeks. 

• Expanding paperless processing on more tax forms will also make the filing and processing system easier and more streamlined than in years past. 

Important dates for the 2024 tax season

While filing will kick off in a few weeks, consumers can start preparing now by gathering all relevant tax documents, and ensuring everything is in order in time for filing. 

Additionally, the IRS has shared a list of helpful dates to consider as tax season kicks off: 

• January 12: IRS Free File opens 

• January 26: Earned Income Tax Credit Awareness Day

• January 29: Filing season start date for individual tax returns

• April 15: Due date for filing a tax return or requesting an extension 

• April 17: Due date for Maine and Massachusetts

• October 15: Due date for extension filers