Since, January 27, 2025, there are a growing number of eligible taxpayers in half of the 50 states that have a free and secure way to file their federal tax returns for the 2024 tax year and make payments. This filing method offers enhanced tools and filing options that assist taxpayers. The payment methods that are available are Direct Pay, credit cards and electronic funds withdrawl.

Expanded eligibility criteria allows for more taxpayers to use this free service. Single filers with income up to $200,000 and married couples filing jointly with combined income up to $250,000 may now qualify. It is now available in 25 states, including Alaska, Arizona, California, Florida, Illinois, New York, Texas, and Washington state, among others (learn more). However, eligibility is additionally based on other factors such as income type, credits claimed, and deductions taken. Curious taxpayers are invited to check whether or not they're eligible using a tool provided on the IRS Direct File website. Create or sign into an IRS online account, verify eligibility, follow step-by-step guidance and enter your tax information. The system includes a useful data import tool that populates information from your IRS account and your W-2 statement.

Direct File is a pilot program, which only prepares federal income tax returns. Direct Pay is a free service that allows payments directly from either checking or savings accounts. Other payment methods include: 1.) Electronic Funds Withdrawal; 2.) Credit card, debit card, or digital wallet payments; 3.) Electronic Federal Tax Payment System abbreviated EFTPS for bank account payments (which requires enrollment). Taxpayers can use their IRS Online Account for viewing account balances, payment history, and scheduling payments. The IRS provides payment plans and alternative options, to meet tax obligations, for taxpayers unable to pay their full tax bill by the deadline.

Direct File has introduced several functional enhancements to improve the user experience including a data import tool that automatically populates information from users' IRS accounts and W-2 forms that may streamline the filing process. Additionally, a new Chatbot has been added to this process in order to guide the taxpayers through the eligibility checker. It has also expanded to include additional tax credits and deductions, such as the Child and Dependent Care Credit, Premium Tax Credit, and Health Savings Account deductions. It is another part of the effort to expand and enhance tools and filing options available for taxpayers. Remember that the deadline for filing your 2024 tax returns and paying any owed taxes is April 15, 2025.

Remember that IRS Direct File is only an alternative for those taxpayers who have resided and worked in a participating state for the entire 2024 tax year. The following section is a listing of those states particpating in IRS Direct File:
Alaska
Arizona
California
Connecticut
Florida
Idaho
Illinois
Kansas
Maine
Maryland
Massachusetts
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
Oregon
Pennsylvania
South Dakota
Tennessee
Texas
Washington state
Wisconsin
Wyoming
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