IRS launches free Direct File program in Massachusetts; Here's how it works

TONIGHT, MAYOR. IT’S CALLED DIRECT FILE. AS IN YOU FILE DIRECTLY ON THE IRS WEBSITE AND ABOUT 850,000 BAY STATERS COULD QUALIFY. THE IRS LAUNCHED THE PILOT SOFTWARE PROGRAM TUESDAY IN 12 STATES, INCLUDING MASSACHUSETTS AND NEW HAMPSHIRE. IT’S SIMPLE, QUICK SOFTWARE IS GOOD. KIND OF LEADS YOU ALL THE WAY THROUGH IT. IT’S FREE, SECURE, SAFE, ALL THOSE GOOD THINGS. BUT IT’S NOT FOR EVERYONE. IN GENERAL, YOU’RE ELIGIBLE FOR DIRECT FILE IF YOU’RE A SINGLE FILER MAKING UP TO $200,000 OR MARRIED FILING JOINTLY, MAKING UP TO 250,000. BUT THE TYPE OF INCOME YOU EARNED MATTERS. IT HAS TO COME FROM A W-2 SOCIAL SECURITY OR RAILROAD RETIREMENT, UNEMPLOYMENT COMPENSATION OR INTEREST UP TO $1,500. OTHER TYPES OF INCOME, SAY FROM GIG WORK OR TIPS, ARE NOT SUPPORTED BY THE DIRECT FILE PROGRAM. ANOTHER THING YOU NEED TO KNOW DIRECT FILE ONLY USES THE STANDARD DEDUCTION, NOT ITEMIZED, AND ONLY SUPPORTS COMMON CREDITS LIKE THE CHILD TAX CREDIT, EARNED INCOME, AND CREDIT FOR OTHER DEPENDENTS. SO IF YOU KNOW YOU USUALLY QUALIFY FOR OTHER CREDITS OR DEDUCTIONS, DIRECT FILE IS NOT FOR YOU. YOU SHOULD, AS A TAXPAYER, TAKE EVERY DEDUCTION AND CREDIT YOU’RE ELIGIBLE FOR FOR TO REDUCE THE AMOUNT OF TAX YOU PAY AND OR INCREASE YOUR REFUND FOR SECURITY REASONS, YOU DO HAVE TO SET UP AN ONLINE ACCOUNT WITH THE IRS USING WHAT’S KNOWN AS ID.ME. THAT INVOLVES UPLOADING A GOVERNMENT ISSUED PHOTO ID, LIKE A LICENSE OR A PASSPORT. AND YOU DO HAVE TO TAKE AND SUBMIT A QUICK SELFIE VIDEO TO PROVE THAT IT’S YOU. AND WHILE DIRECT FILE DOESN’T COVER YOUR STATE TAXES IN MASSACHUSETTS, THE IRS WILL SEND YOU TO A STATE SUPPORTED SITE TO HELP YOU WIT

After weeks of testing, an electronic system for filing returns directly to the IRS is now available to taxpayers in Massachusetts, New Hampshire and 10 other states.The new system, called Direct File, is a free online tool. Taxpayers who have very simple W-2s and claim a standard deduction may be eligible to use it this tax season to file their federal income taxes. "Direct File marks the first time you can electronically file a tax return directly with the IRS," IRS Commissioner Daniel Werfel during a press conference. “And you can't beat the price — its free."In general, you may be eligible for Direct File if you're a single filer making up to $200,000 or married filing jointly and making up to $250,000Income needs to be reported either on a W-2, come from social security or railroad retirement, unemployment compensation or include $1,500 or less of interest. Other types of income from gig work or tips are not currently supported by the Direct File program.The Treasury Department estimates that one-third of all federal income tax returns filed could be prepared using Direct File and that 19 million taxpayers may be eligible to use the tool this tax season. Certain taxpayers in Florida, New Hampshire, Nevada, South Dakota, Tennessee, Texas, Washington, Wyoming, Arizona, Massachusetts, California and New York can participate. Direct File can only be used to file federal income taxes; taxpayers from states that require filing state taxes will need to do so separately.Werfel said a component of the program that enhances filers' usability is the live chat feature that allows taxpayers to interact with the IRS while they complete their taxes.The Direct File pilot is part of the agency’s effort to build out a new government service that could replace some taxpayers’ use of commercial tax preparation software, such as TurboTax. It’s meant to be simple and provides a step-by-step walkthrough of easy-to-answer questions.Derrick Plummer, a spokesman for Intuit, said in an email to the Associated Press that Direct File “is not free tax preparation but a thinly veiled scheme that will cost billions of taxpayer dollars to pay for something already completely free of charge today.”"This scheme will cost billions of taxpayer dollars and will be unnecessarily used to pay for something already completely free of charge today," Plummer said.Several organizations offer free online tax preparation assistance to taxpayers under certain income limits, and fillable forms are available online on the IRS website, but the forms are complicated, and taxpayers still have to calculate their tax liability.When asked whether the Direct File program will likely be built out and available in the 2025 filing season, Werfel said: “I don't want to prematurely reach a conclusion," he said, but positive reports from users "have been encouraging.”Information from the Associated Press was used in this report.

BOSTON —

After weeks of testing, an electronic system for filing returns directly to the IRS is now available to taxpayers in Massachusetts, New Hampshire and 10 other states.

The new system, called Direct File, is a free online tool.

Taxpayers who have very simple W-2s and claim a standard deduction may be eligible to use it this tax season to file their federal income taxes.

"Direct File marks the first time you can electronically file a tax return directly with the IRS," IRS Commissioner Daniel Werfel during a press conference. “And you can't beat the price — its free."

In general, you may be eligible for Direct File if you're a single filer making up to $200,000 or married filing jointly and making up to $250,000

Income needs to be reported either on a W-2, come from social security or railroad retirement, unemployment compensation or include $1,500 or less of interest.

Other types of income from gig work or tips are not currently supported by the Direct File program.

The Treasury Department estimates that one-third of all federal income tax returns filed could be prepared using Direct File and that 19 million taxpayers may be eligible to use the tool this tax season.

Certain taxpayers in Florida, New Hampshire, Nevada, South Dakota, Tennessee, Texas, Washington, Wyoming, Arizona, Massachusetts, California and New York can participate.

Direct File can only be used to file federal income taxes; taxpayers from states that require filing state taxes will need to do so separately.

Werfel said a component of the program that enhances filers' usability is the live chat feature that allows taxpayers to interact with the IRS while they complete their taxes.

The Direct File pilot is part of the agency’s effort to build out a new government service that could replace some taxpayers’ use of commercial tax preparation software, such as TurboTax. It’s meant to be simple and provides a step-by-step walkthrough of easy-to-answer questions.

Derrick Plummer, a spokesman for Intuit, said in an email to the Associated Press that Direct File “is not free tax preparation but a thinly veiled scheme that will cost billions of taxpayer dollars to pay for something already completely free of charge today.”

"This scheme will cost billions of taxpayer dollars and will be unnecessarily used to pay for something already completely free of charge today," Plummer said.

Several organizations offer free online tax preparation assistance to taxpayers under certain income limits, and fillable forms are available online on the IRS website, but the forms are complicated, and taxpayers still have to calculate their tax liability.

When asked whether the Direct File program will likely be built out and available in the 2025 filing season, Werfel said: “I don't want to prematurely reach a conclusion," he said, but positive reports from users "have been encouraging.”

Information from the Associated Press was used in this report.

IRS launches free Direct File program in Massachusetts; Here's how it works

Share

Share

Share

Top Picks