US launches free platform for tax filing in 12 states

US launches free platform for tax filing in 12 states

After weeks of testing, taxpayers in 12 states USA You can directly submit your tax return to the Internal Revenue Service (IRSfor its acronym in English) through an electronic platform.

The new system, called Direct File, is a free online tool. Taxpayers in select states who have very simple W-2 reports and can claim a standard deduction can use it this year to file their federal tax return. The program will also offer a Spanish version, available Tuesday starting at 1 p.m. Eastern Time.

The Treasury Department estimates that one-third of federal tax returns could be prepared with Direct File, and that 19 million taxpayers may be eligible to use the tool this year.

“Direct File will offer millions of Americans a free and easy way to file, without costly and unnecessary fees or additional expenses, putting hundreds of dollars back into the pockets of working families each year, in line with the president’s promise Biden to reduce costs, indicated national economic advisor Lael Brainard.

Some taxpayers in Florida, New Hampshire, Nevada, South Dakota, Tennessee, Texas, Washington, Wyoming, Arizona, Massachusetts, California and New York may participate. Direct File can only be used to file federal tax returns, and taxpayers in states that require specific returns will have to do so separately.

The pilot program is part of the agency’s efforts to develop a new government service that can replace the use of commercial tax preparation software, such as TurboTax, that some taxpayers use. The platform aims to be simple and offers a step-by-step guide with easy-to-answer questions.

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Source: Gestion

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