Eligible Taxpayers in These 12 States Can File Their Federal Tax Return Online for Free With IRS Direct File

If you have yet to file your 2023 federal tax return, it's not too late. The federal filing deadline is over one month away. Before filing, check to see if you qualify for free tax-filing resources so you don't waste money. On March 8, the IRS announced that the pilot IRS Direct File is open for the 2024 tax-filing season. Eligible taxpayers in 12 participating pilot states can file their federal tax returns online for free. Find out what you need to know about the pilot program.

Introducing the IRS Direct File pilot

The IRS plans to launch a free nationwide tax-filing resource in the future. But for now, the agency is testing out a limited pilot program. IRS Direct File will allow taxpayers with simple federal tax returns to file their returns electronically for free.

To qualify to use this service, taxpayers must have lived in one of 12 participating states in 2023. Depending on your state, you may be ineligible to use this service if you earned income in multiple states in 2023.

Here's a list of the participating states:

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

Users will follow step-by-step prompts to prepare and file their federal returns electronically. Live online support from IRS staff is available Monday through Friday, from 7 a.m. to 10 p.m. ET. You can verify eligibility and start preparing your federal return by visiting directfile.irs.gov.

Note: The IRS Direct File program only supports federal tax return filing. However, Arizona, California, Massachusetts, and New York taxpayers using the Direct File pilot will be directed to a state-supported tool to prepare and file their state tax returns.

Only some income, credits, and deductions are supported

In addition to residing in a participating state in 2023, other restrictions exist. IRS Direct File only supports certain types of income, credits, and deductions. If you have a simple tax return, you likely qualify. Here's a look at what kind of tax situations the pilot program currently supports.

Income

Supported: The pilot supports W-2 income, Social Security and Railroad Retirement benefits, unemployment compensation, and 1099-INT interest income of $1,500 or less.

Not supported: You can't use Direct File if you have gig economy earnings or business income.

Credits

Supported: The IRS Direct File supports the Earned Income Tax Credit, Child Tax Credit, and Credit for Other Dependents.

Not supported: You can't use the pilot if you claim other credits, such as the Child and Dependent Care Credit, Saver's Credit, or the Premium Tax Credit.

Deductions

Supported: This pilot program supports the standard deduction, education loan interest, and educator expenses.

Not supported: You can't use Direct File if you itemize deductions.

Keep more money in your pocket

Don't waste money on tax-filing fees. Free tax prep and filing services can help you keep more money in the bank. If you live in one of the participating states and qualify based on the type of return you'll file, try IRS Direct File this tax season.

You may be eligible for the IRS Free File program if you don't qualify for Direct File. Eligible taxpayers with a household adjusted gross income (AGI) of $79,000 or less can file their federal tax returns for free online.

Another tax-filing option to explore is free tax software. To learn more before you file your tax return, check out our tax-filing guide. For additional financial guidance, The Ascent also offers free personal finance resources.