Washington News

The Internal Revenue Service (IRS) recently reminded taxpayers that they can file their 2024 returns at no cost. The IRS Direct File program has been enhanced and expanded this year to be available in 25 states. There are multiple benefits for taxpayers who want to use the free Direct File program.

1. How To Direct File — The Direct File program is available in English or Spanish. Taxpayers may import data from an IRS account and use a step-by-step method to complete their return. Many taxpayers will also have a state return option available. There is IRS customer support available in both English and Spanish.

2. Participating States — The Direct File program is currently available to taxpayers in 25 states. These states include 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, Wisconsin and Wyoming.

3. Who Can Direct File — Taxpayers in the 25 participating states can use Direct File. They may report their W-2 income, their SSA-1099 Social Security income, Form 1099-G unemployment compensation or Form 1099-INT interest income. They also can report Form 1099-R retirement income for most distributions from qualified retirement plans and direct rollovers between qualified retirement plans. Direct File is not available for taxpayers with self-employment, rental or business income.

4. Direct File Credits — There are seven credits available: Earned Income Tax Credit, Child Tax Credit, Credit for Other Dependents, Child and Dependent Care Credit, Premium Tax Credit, Credit for the Elderly and Disabled and Retirement Savings Contribution Credit.

5. Direct File Deductions — Taxpayers may claim the standard deduction, student loan interest, educator expense or Health Savings Account contributions. It is not possible to itemize deductions with Direct File.

Direct file is available on IRS.gov. You will need to enter your Social Security number (SSN) or Individual Taxpayer Identification Number (ITIN). You can also sign in through your online IRS account. Taxpayers will complete the return through a series of questions. After you review your return, you can submit it electronically. Many states also offer a state return option.

If you have an IRS account, you can import your Identity Protection PIN (IP PIN), your Social Security Number, your Individual Taxpayer Identification Number, your name, date of birth, mailing address, email address and phone number. You may also be able to import your IRS Form W-2 information.

There are limitations for higher income taxpayers. Direct file is limited to taxpayers with wages that are less than $200,000 ($168,600 if you have more than one employer). If you file as Married Filing Jointly, you must have joint wages of less than $250,000, with neither spouse having wages exceeding $200,000. If file as Married Filing Separately, then wages must be less than $125,000.