WASHINGTON, USA — Some Washingtonians could be invited to be part of a new tax filing process next year that will not cost any money for individuals.
Washington will be one of 13 states included in the Internal Revenue Service (IRS) Direct File pilot during the 2024 tax season.
Direct File is a new service that will give taxpayers the choice to electronically file their federal tax returns with the IRS for free. Nine of the 13 participating states do not have state income taxes, but only federal returns will be eligible for Direct File in other involved states.
The IRS said only certain taxpayers will be eligible in participating states. The agency said the program will apply to "taxpayers with relatively simple returns" in its release Tuesday.
Direct File will be mobile-friendly and interview-based, according to the IRS. It will be available in English and Spanish for the pilot. Participants will have access to help from IRS employees on the customer support team for Direct File, who can answer specific questions on the pilot or direct customers to other types of tax support.
Washington is choosing to join the IRS' integration of Direct File for the state's application of the Working Families Tax Credit in 2024.
"This is a critical step forward for this innovative effort that will test the feasibility of providing taxpayers a new option to file their returns for free directly with the IRS," said Danny Werfel, IRS commissioner. "In this limited pilot for 2024, we'll be working closely with the states that have agreed to participate in an important test run of the state integration. This will help us gather important information about the future direction of the Direct File program."
The IRS said the final tax scope for the pilot has not been finalized but is expected to include:
- W-2 wage income
- Social Security and railroad retirement income
- Unemployment compensation
- Interest of $1,500 or less
- Earned Income Tax Credit
- Child Tax Credit
- Credit for Other Dependents
- Standard deduction
- Student loan interest
- Educator expenses
More information and updates regarding the pilot can be found here.