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The Internal Revenue Service announced the launch of the innovative Direct File pilot that allows early users to file their 2023 federal tax returns online for free and directly with the IRS. 

The IRS launched the Direct File pilot for the 2024 filing season. The Inflation Reduction Act mandated that the IRS study the interest in and feasibility of creating a direct e-filing tool for taxpayers to prepare and file their federal income tax returns.

Following the initial success of Direct File, the IRS is moving the pilot out of the test phase and allowing all eligible taxpayers in the 12 states—representing 19 million taxpayers—to use the system at any time. Taxpayers can log in to Direct File to start their return and complete it any time before the April filing deadline.

Initial testing began in early February 2024 with federal and state government employees, followed by short open availability windows for more taxpayers to start their returns. On March 4, the IRS announced that Direct File would enter final testing, including an allotment of available spaces with more spaces added daily. 

“The early results from Direct File have shown taxpayers like the ease and convenience of the tool, and moving into the full-scale launch of the pilot will give more taxpayers a chance to use this free option,” said IRS Commissioner Danny Werfel in a press release. “Expanding Direct File as the tax deadline approaches will provide more taxpayers a way to file directly with the IRS for free, giving us more valuable information to assess this pilot. For those who haven’t filed their taxes in these 12 states, we encourage them to visit IRS.gov and see if Direct File is the right option for them.” 

Taxpayers in the 12 pilot states who meet specific requirements can use Direct File through the April tax deadline. Pilot states include Arizona, California, Florida, Massachusetts, Nevada, New Hampshire, New York, South Dakota, Tennessee, Texas, Washington State, and Wyoming.

Direct File is one of many options that taxpayers have to file their taxes, including tax software and tax professionals. For the pilot, the IRS worked on a streamlined way for people with more straightforward tax situations to file directly with the agency.

The online source walks the taxpayer through the complexities of the nation’s tax code to complete their filing with a calculation of their refund or tax owed. Direct File is designed to be easy for taxpayers to use – it shows the work behind the calculations so users can be confident that the tax return is complete and accurate. 

Once taxpayers start their return on the Direct File site, they can pause and then securely sign in to finish any time before the April filing deadline.

Users can also get support from special IRS customer service representatives through Direct File’s live chat feature. Direct File, like other electronic filing options, allows taxpayers to typically get their refund in less than 21 days when the direct deposit is chosen.

“We’ve gotten great initial feedback from the thousands of taxpayers who used it during testing,” Werfel said. “Many taxpayers we’ve heard from filed their taxes in less than 30 minutes using Direct File and praised it as an easy, no-cost tax filing experience.”

After completing their federal returns, taxpayers in the states with a state income tax—Arizona, California, Massachusetts, and New York—will be guided to a state-sponsored tool to complete their state tax returns.

The Direct File pilot is an option for taxpayers who fall into these categories: report income earned from jobs that generate a Form W-2 – including taxpayers with more than one job with W-2 wages; claim Earned Income Tax Credit, Child Tax Credit and the Credit for Other Dependents; claim the standard deduction and deductions for educator expenses and student loan interest; and have lived in the same state for the entire calendar year 2023.

Interested taxpayers can go to directfile.irs.gov to determine if they are eligible. Using Direct File requires identity verification through ID.me. Once their identity is verified and signed in securely to Direct File, they will provide the tax information directly to the IRS, not a third party.

TaxpayersTaxpayers who visit Direct File but aren’t eligible for the pilot will be directed to Free File on IRS.gov. 

The IRS commissioned an independent study, which indicated a broad interest in such a system, which the IRS detailed in a Direct File Report to Congress in May 2023. Shortly after that report, the IRS assembled a team of tax experts, technologists, engineers, and strategists from across the government to build the Direct File system. The IRS worked closely with the U.S. Digital Service and the General Services Administration’s technology office 18F to develop and test Direct File. 

Direct File is now open to all eligible taxpayers in pilot states to decide if it is the right option for them to file their 2023 federal tax return online for free, directly with the IRS.