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For the first time, a new IRS tax tool will allow taxpayers to file their federal taxes online for free. Florida is one of 12 states eligible for the pilot program.
The IRS Direct File was created using funds from the Inflation Reduction Act. It’s estimated to save taxpayers an average of at least $150 and 9 hours every tax season.
Igor Volsky is the executive director of Groundwork Action. He says it’s a long time coming.
“Republican presidents like President Reagan and President Bush actually supported free filing, and now, here we are in 2024 with the government finally building out a system that would really give taxpayers the choice to file for free if they so choose.”
The program has received support from various organizations, including labor union group AFL-CIO and Latino advocacy group UnidosUS.
But it’s received major pushback from the tax prep industry.
“The tax prep industry has been trying to undermine efforts to empower taxpayers to file their taxes for free for decades.”
One of the main offenders is Inuit’s Turbo Tax. They’ve lobbied against tools like this for years. In January, the FTC found that TurboTax deceived customers by promoting what they called free tax products that very few people were eligible for.
In response, Better IRS has launched a campaign promoting this new tax tool, including a video commercial.
The program is for taxpayers with relatively simple tax situations. Full eligibility requirements are listed on www.directfile.irs.gov
April 15th is the due date for filing taxes.
