(VitalNews.org) – The Internal Revenue Service and the United States Treasury Department announced that they will be expanding the Direct File free tax filing initiative that they originally rolled out in some states earlier this year. This will be a permanent option and will expand to all fifty states.
“The Treasury Department and IRS look forward to working with states to expand Direct File for Americans across the country,” said Janet Yellen, Treasury Secretary.
At the beginning of the year, twelve states were able to use the Direct file tool as long as they had “simple tax situations” such as only having one W-2 and making less than two hundred thousand dollars a year. More than one hundred thousand people used the program which exceeded the IRS’ expectations.
A Biden administration official came out and spoke about the tax goals. “The goal in the coming years is to expand the reach and tax scope of Direct File to provide an option for working-and middle-class taxpayers nationwide, and Treasury and IRS plan to announce more details on expanded eligibility in the coming months,” they said.
The IRS would extend its Free File program, which allows taxpayers with incomes of $79,000 or less to use tax prep software for free through the IRS, through 2029.
Said Danny Werfel, the IRS Commissioner, “We were pleased to see growth in the program this year, and we look forward to continuing this important collaboration with the tax software industry.” The IRS is said to be working on multiple different ways to broaden eligibility when it comes to tax filing.
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