IRS to roll out free tax filing program in 12 states: How it works

(NEXSTAR) – The Internal Revenue Service is launching its new free tax filing system in 2024, and the pilot program will be available to taxpayers in multiple states for the start of tax season, Jan. 29.

Known as Direct File, the IRS says the online tool will come with step-by-step guidance and real-time support, but not everyone will be eligible at first.

As part of a staggered rollout, Direct File will initially be available to government employees in the following states: Arizona, California, Florida, Massachusetts, Nevada, New Hampshire, New York, South Dakota, Tennessee, Texas, Washington state and Wyoming.

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For the first wave of the pilot program, eligibility will also depend on how straightforward the federal tax return is – itemized deductions, additional gig or business income and certain tax credits won’t qualify.

Depending on the success of Direct File, the IRS plans on opening up access to private sector employees in the 12 participating states by March, a spokesperson told Nexstar.

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