Residents of 12 states are eligible to participate if they meet certain criteria. But the agency’s plans have already met resistance from tax preparation companies.

The Internal Revenue Service is rolling out a free option for filing federal tax returns this year to some residents of a dozen states.

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Arizona, California, Florida, Massachusetts, Nevada, New Hampshire, New York, South Dakota, Tennessee, Texas, Washington State and Wyoming are participating.

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The direct file pilot will be open to low- and moderate-income taxpayers with simple returns. To be eligible, for instance, filers must take the standard deduction and have income limited to wages reported on Form W-2, Social Security or unemployment as well as interest income of $1,500 or less. Gig workers aren’t eligible.

    • mosiacmango@lemm.eeEnglish
      2·
      1 year ago

      They are just doing a slow roll out to test simple tax returns, to make sure the system is stable enough to handle more complex returns, like people with 1099s, down the line.

      I bet there are plently people that fit the current restrictions in each state for a successful test.