Joshua J. Friedman: NEW: The IRS is making its free online tax filing program, Direct File, permanent in all 50 states

NEW: The IRS is making its free online tax filing program, Direct File, permanent in all 50 states

Free IRS online tax filing program coming soon to all stateswww.axios.com It could deal a massive blow to private tax filing services such as TurboTax.

Some clarifications, now that the press release is out: —IRS apparently can't force states to participate, but they'll work with every state that's interested —Yes, IRS plans to expand the software to include "most common tax situations" www.irs.gov/newsroom/irs...

gonna make a guess at what the map of participating states looks like

A sad realization is that a lot of citizens in Red States would want this program, but their Purchased Politicians will try to bar them from using it.

Actually, scratch that, not bar it, they'll try and flat out make it illegal to use it. They're already doing it to women, as some states are willing to jail them (and their accomplices) if they travel out of state for an abortion (doctor included). And there's also some doing a ban on Plan B pills.

I might give that a read if it's a real book. "To know your enemy, you must become your enemy." - Sun Tzu, The Art of War

it is! en.wikipedia.org/wiki/What%27...

What's the Matter with Kansas? (book) - Wikipediaen.wikipedia.org

Similar to Medicaid expansion? Yeesh.

Wait does the state opt-in thing apply to just federal taxes too (ie filers in states with no state income tax)?

yes. but im pretty sure all tax free states were in it. I know FL, TN, WA, and NV participated in the 2023 version.

I used it this year and aside from a little clunky interface issues I was very happy with it and am glad it will come back next year. It saved me a good clip of money. That, combined with California's free e-file, I was able to do my taxes for free for the first time in decades.

I do hope this opens potential new jobs for people. For a program like this, they're going to need some financial accountants* and most definitely IT (hardware, software, help desk, user experience, server equipment, and databases). There's more, but those two were at the top of my head.

“"Why in the heck should you have to fill out your return when the government has all the information. They know what's on your W-2 form before you do. They know what's on your 1099 … Do you know how many mistakes people make?"” This right here

In all European countries I have lived the taxreturn is digital and already filled in.

This is what I want. If I have deductions (as a person down thread noted), I can fill them in but otherwise just submit it

Norway has really great solution where you only submit it if you need to make changes. Not submitting means you just accept the number they already have. This saves me a lot of time since I only have pension savings there. So can just leave it up to them.

I hope we’ll get there eventually but we’re a pretty backward country so who knows

ours is more difficult because how state laws affect even federal tax. for example, if CO recognizes your common law marriage, then you must file married. if they don't, you have other options. and if you're in community property state, things can get dicey

Only thing we should have to submit are deductions if we want them.

australia its pretty much all prefilled by the tax office...

Because the IRS doesn’t have any way of knowing your itemized deductions, your rental income & expenses, your expenses from your side hustle, etc. They also don’t know your filing status, childcare expenses, or whether you’re claiming dependents.

That’s why they start with what the know and you fill in the rest. No one is saying the IRS should magically know your expenses from your side hustle cmon

Long overdue, but very welcome.

Because the IRS got the funding to make it happen from the passage of the IRA. They'd been starved for so long because of Republicans

100%. I'm sure the IRS would have loved to do it but was actually barred from soing so.

getting closer to return free filing

Suck it, TurboTax

Which is why Republicans will kill it as soon as they can. Another reason to keep a Dem POTUS veto

This won't last long once an R is back in the White House!! 💰 incoming from Intuit etal 💰

Note that this IRS program only covers federal returns. There are also state-by-state efforts to integrate free online filing of state taxes with IRS Direct File. For example, this tool covers NY and AZ: www.fileyourstatetaxes.org (It is limited to simpler returns, just like IRS Direct File.)

Free AZ and NY state tax filingwww.fileyourstatetaxes.org A simple and free state filing tool for Arizona and New York taxpayers using IRS Direct File.

Please let this be one of the examples canada follows instead of trying to "but they do it like that so it must be the right way to do things" with all the bad shit...

Free and government run would be great. But we do have plenty of cheap options that aren’t the big 2. I’ve been using this one for years, it used to be pay-what-you-want but is now $15 (good for 10 returns.)

StudioTax - Canadian Personal Income Tax Softwarewww.studiotax.com

I used it this year! Really easy, though I'd have put in a lot of extra effort anyway just to spite the parasitic Intuit/Turbotax. The only annoyance was that it doesn't cover state returns

That’s KIND OF VERY annoying

A lot of states have free efiling directly with them.

Another reason to go out and vote come November. Otherwise, this will be overturned.

It says "permanent for the 2025 tax season", does this mean that it's not permanent overall? Will it be available for the 2026 tax season and the 2027 tax season and so on?

Answer: bsky.app/profile/cowc...

I agree that it's odd language. I believe the reporter meant "permanent beginning with the 2025 tax season," but I'm going to pay attention to the official announcement to confirm

www.irs.gov/newsroom/irs...

IRS makes Direct File a permanent option to file federal tax returns; expanded access for more taxpayers planned for the 2025 filing season | Internal Revenue Servicewww.irs.gov IR-2024-151, May 30, 2024 WASHINGTON — Following a successful filing season pilot and feedback from a variety of partners, the Internal Revenue Service announced today that it will make Direct File a ...

"a permanent option for filing federal tax returns starting in the 2025 tax season." Mystery solved, good work

"Until republicans defund it after taking money from intuit et al"

H.R.25 - FairTax Act of 2023 moment

Thank you 👍

Probably depends on who is in the White House.

Given that some politicians want to abolish the IRS, very true

Getting my IRS sneakers, to show support

Now, just try USING it! It's an absolute nightmare.

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