After successful testing, the IRS has launched a new electronic system called Direct File, allowing taxpayers from 12 selected states to file their federal income taxes directly. This free online tool is designed for individuals with simple W-2s and who claim a standard deduction. Taxpayers in states like Florida, New York, California, and others can take advantage of this service.
The Treasury Department estimates that around one-third of all federal income tax returns filed could be prepared using Direct File. Approximately 19 million taxpayers may be eligible to use this tool during the current tax season. The program will also offer a Spanish version to cater to a wider audience.
