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IRS Launches Free Electronic Tax Filing System in 12 States Including New York for 2023 Tax Season

The Internal Revenue Service (IRS) is rolling out its free electronic tax filing system in 12 states, including New York, ahead of the 2023 tax filing season.

According to the agencythe internal filing system will first be available in 12 states while it undergoes final testing before expanding nationwide at a later date.

“As our transformation efforts take hold, taxpayers will continue to see marked improvement in IRS operations in the upcoming filing season,” said IRS Commissioner Danny Werfel. “IRS employees are working hard to ensure the new funds are used to help taxpayers by making the tax preparation and filing process easier.”

For now, Direct File will only accept federal tax returns, but the IRS will redirect taxpayers to file their state’s supported tool (if one exists) if they want to file a state return.

What is Direct File, the new IRS tool

The new presentation tool is different from the current program Free File del IRS, which allows taxpayers whose income are less than $79,000 file your taxes for free through participating brand-name software. Direct File is open to everyone, regardless of income.

Ahead of the 2023 tax season launches on Monday, January 29, here’s everything you need to know about Direct File.

What are the requirements for Direct File?

If you report any of these items on your tax return, the IRS says you are able to use its free filing tool:

Taxpayers who also request credits such as earned income tax credithe child tax credit or the credit from other people Dependents can also file and claim these benefits using the tool, the IRS said.

Deductions such as standard deductionlos student loan interest and education expenses can also be claimed through Direct File.

How does Direct File work?

The agency said Direct File will have a step-by-step checklist approach to filing that will allow taxpayers to go through their returns seamlessly.

The tool will also have interactive icons on each screen to help answer common questions, but will also offer live assistance directly from an IRS Direct File customer service representative if needed.

Once filed, Direct File will show taxpayers a summary of their 2023 federal taxes before sending a filing confirmation email, and another email when the IRS accepts their return for processing.

The IRS will then ask users if they want to file state tax returns and redirect them to a state-sponsored tool, if one exists. New York users will be redirected to the New York State Free File tool.

Direct File does not require the installation or purchase of any software. It is also mobile-friendly, so users will be able to file their tax returns on a phone or tablet, as well as through a computer.

The tool is available in English and español.

The increase in deductions will be reflected in the reimbursement of the income you had in 2023. Here are the details.

How does New York State Free File work?

Taxpayers with adjusted gross income (AGI) of $79,000 or less in 2023 qualify to use the free New York state tax filing tool.

To use the tool, Free File requires that you have:

  • An active email account (allows you to track the status of your return).
  • A copy of last year’s tax return or your federal adjusted gross income from the previous year.
  • A driver’s license or state-issued non-driver ID (for you and your spouse, if filing jointly).
  • Dates of birth and Social Security numbers (for you, your spouse, and your dependents).
  • Proof of income and taxes withheld is like IRS Forms W-2, 1098, 1099.
  • Your tax account balance.
  • Forms 1095-A, B, or C, Affordable Care Statement.
  • Information related to any income tax credits you are claiming.
  • Your bank account number and routing number.
  • NY529 College Savings Account Information (if you are requesting a refund to be distributed).

How can I use Direct File?

To use Direct File, eligible taxpayers will need to create a IRS account and verify your identity through the ID.me tool.

To verify your identity, the IRS will ask you to provide a driver’s license, state ID, passport, or passport card, as well as take a photo using a smartphone or upload an image of your selected document.

Taxpayers can choose to verify their identity via live chat to avoid automated biometric data collection.

When can you start filing your income tax return?

El IRS advertisement which will officially begin accepting and processing 2023 tax returns on Monday, January 29.

What is the deadline to file the income tax return this year?

The federal deadline to file the 2023 tax return is April 15 for most filers. However, deadlines vary for state tax returns.

The IRS expects more than 128.7 million people to file individual tax returns this year.

2024-01-24 17:35:05
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