IRS Direct File adds 12 additional states, covers more tax situations in 2025

https://www.irs.gov/newsroom/irs-direct-file-set-to-expand-availability-in-a-dozen-new-states-and-cover-wider-range-of-tax-situations-for-the-2025-tax-filing-season

by toomuchtodo • 2 years ago

108 47 2 years ago

irs.gov

toomuchtodo4• 2 years ago

Title summarized from "IRS Direct File set to expand availability in a dozen new states and cover wider range of tax situations for the 2025 tax filing season" due to title character limits.

leetrout• 2 years ago

During the pilot last year, Direct File was available in:

   - Arizona
   - California
   - Florida
   - Massachusetts
   - Nevada
   - New Hampshire
   - New York
   - South Dakota
   - Tennessee
   - Texas
   - Washington State
   - Wyoming

For the 2025 tax filing season, Direct File will also be available in:

   - Alaska
   - Connecticut
   - Idaho
   - Kansas
   - Maine
   - Maryland
   - New Jersey
   - New Mexico
   - North Carolina
   - Oregon
   - Pennsylvania
   - Wisconsin

ryandrake• 2 years ago

Excellent. Even if Direct File doesn’t yet handle my complicated tax needs, I am grateful for its existence and trajectory as it will eventually put downward price pressure on the commercial tax prep societal leeches like TurboTax and Block. Keep up the progress!

BugsJustFindMe2• 2 years ago

it will eventually put downward price pressure on the commercial tax prep societal leeches like TurboTax and Block

https://cash.app/taxes is already free for both federal and state and handled all of my complicated tax needs the past two years.

toomuchtodo4• 2 years ago

There’s no reason private companies should be needed to file income tax returns. The IRS Direct File system will eventually handle all 50 states (they are ~50% there) and all but the most unique tax situations. This is a utility, not a business.

(Cash App is also likely to not survive the FedNow instant payment rollout to all US deposit accounts, tangentially)

wslack• 2 years ago

It's free as long as Cash.app wants to maintain it. I'd rather there'd be no incentive to complicate the tax code such that many people need to hire accountants to figure it out.

PopAlongKid3• 2 years ago

It appears you need a smartphone and must download their app for it, although they claim you can then use your computer. That's a non-starter for many people.

esbranson• 2 years ago

Cash App demands you give up your rights to file taxes. That's a hard no.

Taniwha2• 2 years ago

Looking forward to being able to file my non-resident return.

Here in NZ about 40 years ago we greatly simplified our tax system, most people don't have to file a return, if you have a single job chances are your employer will pay exactly the right amount of tax - if they got it wrong our IRD will either ask you for some more or send you a refund (with interest). If you want you can file online, it's a ~3 page web form (all your employer data, like W2s, are available on line).

No one sells tax programs in NZ.

PopAlongKid3• 2 years ago

Here in NZ about 40 years ago we greatly simplified our tax system

Here in the U.S. over the same period we greatly complicated our tax system. Special interests, tax breaks for the wealthy, welfare payments issued as refundable credits, etc.

mulmen7• 2 years ago

New Zealand has a population of 5.2 million people with a GDP of $247 billion. The United States has a population of 340 million people and a GDP of $27,940 billion ($27.94 trillion). New Zealand would be the 24th largest US state by population and the 30th by GDP. New Zealand has a smaller population than New York City. New Zealand’s economy is smaller than Denver, Colorado’s and would be the 19th largest city by GDP in the US.

It’s just not even remotely close to the same scale of problem. The United States has the largest economy in the world. It’s larger than the next three (China, Germany, Japan) economies combined.

I’m glad New Zealand was able to achieve their goal but I don’t see what it has to do with the US.

Simon_ORourke• 2 years ago

Agreed - anything which drives the likes of TurboTax and Block towards a Chapter 11 bankruptcy is objectively a good thing.

blahyawnblah• 2 years ago

https://www.freetaxusa.com while not exactly free has been cheap and great for me

deckar01• 2 years ago

“Free Fillable Forms” is the official IRS system for doing it manually online (no form or income limits). I even messed up my return last year and it got kicked out within an hour of upload with instructions on how to fix it.

nsteel• 2 years ago

Reminder: it closes for 2023 submissions on 15th October 2024. Only 11 days left!!!

PopAlongKid3• 2 years ago

While U.S. income tax filing is a perennially popular topic on HN, I don't recall seeing mention of the free, human-assisted (by trained volunteers) filing that has been provided under IRS sponsorship for decades[0]. AARP TaxAide[1] is also a large sponsor. I have been a volunteer in the past, and can report that in at least some locations, there is no $64K income limit, but it is true that a number of "complicated" forms can disqualify use (such as depreciation expense deductions).

Having the option to sit face-to-face with another person who can answer questions about your situation at no charge is of value.

[0]https://www.irs.gov/individuals/free-tax-return-preparation-...

[1]https://www.aarp.org/money/taxes/aarp_taxaide.html

guerrilla2• 2 years ago

What about for expats?

joejohnson• 2 years ago

Still not supported because it does not handle the Foreign Earned Income exclusion.

guerrilla2• 2 years ago

Thank you.

IshKebab• 2 years ago

It still seems strange that you have to file taxes in the first place. We generally don't in the UK - you only need to if you're in a situation more complicated than the standard salaried job. What do other countries do?

sofixa2• 2 years ago

Same here in France, all revenues from employers, unemployment office, capital gains, pensions, small business, etc. are already prefilled for you.

If you're in a classic situation, you just check the numbers match, and next next approve the form (online on a government website). If you have anything specific (like donations or capital gains abroad in foreign banks), you declare that yourself.

Larrikin• 2 years ago

There's one party in the US that likes to show government is bad by getting elected and making it worse. Taxes especially are meant to be painful so that you're reminded everyday about them and dread filing.

orev• 2 years ago

I wish the FAFSA team learned from the IRS how to properly rollout a new service.

ohples• 2 years ago

But will it support Login.gov?

IRS Direct File adds 12 additional states, covers more tax situations in 2025

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