4 States to Test-Run IRS Free Filing Tool in 2024

A concrete block in the wall of the IRS building that says

In this limited pilot for 2024, the IRS will be “working closely with the states that have agreed to participate in an important test run of the state integration,” Werfel said. “This will help us gather important information about the future direction of the Direct File program.”

Taxpayers in those 13 states may be eligible to participate in the 2024 Direct File pilot, a new service that will provide taxpayers with the choice to electronically file their federal tax return directly with the IRS for free.

Taxpayer eligibility to participate in the pilot, the IRS explained, “will be limited by the state in which the taxpayer resides and will be limited to taxpayers with certain types of income, credits and deductions — taxpayers with relatively simple returns.”

The IRS said “it anticipates specific income types, such as wages on a Form W-2, and important tax credits, like the Earned Income Tax Credit and the Child Tax Credit, will be covered by the Direct File pilot.”

Rep. Richard Neal, D-Mass., ranking minority member of the House Ways and Means Committee, applauded the IRS’ progress on the direct filing initiative.

“Direct filing will ease taxpayers’ burden and help deliver more comprehensive services, including bilingual customer support lines, that particularly benefit low- and moderate-income families across America,” Neal said Tuesday in a statement.

“As one of the four states participating in the pilot program, Massachusetts is ready to be at the forefront of delivering this new electronic filing option and continuing the advancements delivered by Ways and Means Democrats with the historic Inflation Reduction Act.”

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