Tax season is approaching, and with it comes that feeling of stress, endless documents, and the question: will I spend a lot of money on accountants to file my taxes?
SPOILER: Maybe not this time! The IRS (our famous Internal Revenue Service) is here to help—and for free
How will it work?
You read that right! The IRS is expanding the Direct File program, a tool that allows taxpayers to file their taxes at no cost. And the best part—no need for software or professional services.
What is the IRS Direct File?
Filing your taxes simply, for free, and officially through the government is no longer a dream. Last year (2024), the Direct File program was launched as a pilot in 12 states. After being a success, this year, the program is being launched in 24 states, benefiting around 30 million people.
The idea is simple: you fill out your return directly on the IRS website and submit everything quickly and securely. No fees and no complications!
We’ve Got Updates
The Direct File program is even better this year. The IRS has added new features to make the process more comprehensive and accessible. Here are some of the updates:
Different Income Types
Now, in addition to wages and interest, you can also declare:
- Income from pensions and annuities.
- Dividends from the Alaska Permanent Fund (for those living in Alaska, of course!).
Added Tax Credits
The program now covers important credits such as:
- Child and Dependent Care Credit.
- Credit for the Elderly and Disabled.
- Saver’s Credit.
- Premium Tax Credit (for those who bought health plans through the marketplace).
Deductions for Health Savings Accounts (HSA)
If you have a Health Savings Account (HSA), you can now include these deductions in the program. It doesn’t cover all possible deductions yet, but it’s already a step forward for those seeking more ease in filing.
Why is this so important?
Filing taxes can be a nightmare. Many people end up spending more because they believe their only option is accountants or software. The Direct File program is here to change that.
Not only is it free, but it also reduces the chance of errors since it’s aligned with IRS rules. Additionally, the tool helps you take advantage of credits and deductions you might not even know you were eligible for. In other words: more money in your pocket at the end of the process.
But how do you use direct file?
If you’re in one of the 24 eligible states, just access the official IRS website during tax season. The step-by-step process is simple:
- Check your eligibility using the IRS checker.
- Enter your details directly into the platform.
- Submit your return and relax!
And there’s more: the IRS offers support throughout the process, so you don’t need to worry about getting lost along the way.
We’ve got some extra tips for you
The expansion of Direct File is great news for those looking to simplify the process. With a free, official, and easy-to-use tool, the IRS is helping millions of people save time and money.
But you also need to do your part, so jot down these tips to avoid forgetting:
- Check your eligibility: visit the IRS website to find out if your state participates in the program.
- Prepare your documents: gather your receipts, W-2 forms, and 1099s in advance.
- Keep an eye on the deadlines: tax season starts in January and ends in April. Don’t leave it until the last minute, okay?
Ready to file your taxes with peace of mind?
