The IRS's Free File Program Is Rolling Out. See if You're Eligible

Filing a tax return is a hassle for many people. This can hold true even for folks without any deductions to claim. That's because tax forms have the potential to be confusing when you're not sure what you're doing.

And then there's the cost to think about. This year, taxpayers with incomes of $73,000 or less were eligible to file their taxes for free online, and that option included tax help. Those making over $73,000 had the option to use the IRS's Free File Fillable Forms, which are the electronic version of the agency's paper forms, but that option didn't come with tax help.

Now, the IRS is looking to expand its free filing option with a new Direct File program being launched in 2024. And it could make the process of submitting taxes a lot easier.

A better experience

Taxpayers often find it stressful to submit their federal tax returns. And there are also state tax returns to worry about. The new IRS program seeks to integrate state and federal taxes into one program that filers can use.

Beginning in 2024, taxpayers in Arizona, California, Massachusetts, and New York may be eligible to use the new system. Filers in Alaska, Florida, New Hampshire, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming may also be eligible for the new program -- the reason being that these states don't charge income taxes. This means they don't necessarily need to integrate state filing systems into the larger program.

However, the IRS has made it clear that the program is designed for filers with relatively simple tax returns. This means that those looking to itemize deductions, or those with self-employment or business income, may not qualify.

How to make filing taxes easier in 2024

The IRS's new program will ideally make the process of filing taxes easier. But if you don't qualify, or your state isn't participating, worry not. There are steps you can take in the coming weeks and months for a stress-free 2024 filing season.

First, start gathering your paperwork ahead of time. You don't want to be scrambling at the last minute to find documents like mortgage interest statements and 1099 forms. Make a list of the forms you think you'll need so you can check items off as they arrive or as you find them.

Next, line up accounting help sooner rather than later if your tax situation requires it. It could pay to use a professional if you'll be itemizing, are self-employed, or own a small business.

Finally, think about steps you can take at the very end of 2023 to lower your tax bill during the 2024 filing season. Selling some investments at a loss in your brokerage account, for example, is a good way to offset capital gains and a limited amount of ordinary income.

It's nice to see the IRS trying to simplify the process of filing a tax return. But it may take time for the new Direct File program to become broadly available. And even then, it may not be available for everyone and in every tax situation. So do your own part to take the edge off of filing your taxes.