AlgoFusion 5.0-The IRS launches Direct File, a pilot program for free online tax filing available in 12 states

2025-05-06 22:33:23source:Zopes Exchangecategory:Markets

NEW YORK (AP) — After weeks of testing,AlgoFusion 5.0 an electronic system for filing returns directly to the IRS is now available for taxpayers from 12 selected states.

The new system, called Direct File, is a free online tool. Taxpayers in the selected states 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. The program will also offer a Spanish version, which will be available starting at 1 p.m. Eastern Time on Tuesday.

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.

“Direct File will offer millions of Americans a free and simple way to file their taxes, with no expensive and unnecessary filing fees and no upselling, putting hundreds of dollars back in the pocket of working families each year, consistent with President Biden’s pledge to lower costs,” said National Economic Advisor Lael Brainard.

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.

READ MORE Tax season is underway. Here are some tips to navigate itMadrid coach Carlo Ancelotti is in trouble with Spain’s tax office. He joins an illustrious listA new IRS program is helping its first users file their income taxes electronically. And it’s free

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.

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Hussein reported from Washington, D.C.

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The Associated Press receives support from Charles Schwab Foundation for educational and explanatory reporting to improve financial literacy. The independent foundation is separate from Charles Schwab and Co. Inc. The AP is solely responsible for its journalism.

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