The Internal Revenue Service (IRS) has launched its free Direct File service for 2024 tax filings, providing an alternative to commercial tax software for residents of 25 states with relatively simple tax scenarios. This new service aims to make tax filing more accessible and convenient for eligible taxpayers.

The Direct File program is a pilot project that allows taxpayers to file their taxes directly with the IRS, bypassing commercial tax preparation software. To be eligible, taxpayers must have lived and worked in one of the 25 participating states for all of 2024. These states include Alaska, Arizona, California, Connecticut, Florida, Idaho, Illinois, Kansas, Maine, Maryland, Massachusetts, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Oregon, Pennsylvania, South Dakota, Tennessee, Texas, Washington state, Wisconsin, and Wyoming.

The Direct File service is limited to taxpayers with relatively simple tax scenarios, excluding those who are self-employed, have gig economy income, or itemize their deductions. Taxpayers can check their eligibility by clicking on "Check eligibility now" on the Direct File page, which will direct them to a questionnaire to determine their eligibility.

In addition to the Direct File service, the IRS also offers its Free File program, which is available to taxpayers with an adjusted gross income of $84,000 or less. The Free File program provides access to free guided tax software from "trusted partners" of the IRS. However, two prominent tax software companies, Intuit and H&R Block, have pulled out of the Free File program in protest of the IRS's development of Direct File.

Taxpayers who do not qualify for Direct File or Free File can still use fillable forms provided by the IRS, although they will not have access to free software support. The IRS also offers a range of payment options, including Direct Pay, which allows taxpayers to pay their taxes online directly from their bank account without additional fees.

For taxpayers who owe taxes but cannot pay in full, the IRS offers payment plans, including short-term and long-term plans. These plans can be arranged online, and the setup fees vary depending on the type of plan and the taxpayer's income level.

The IRS is encouraging taxpayers to file online, promising faster refunds in most cases, typically within 21 days. Taxpayers can check the status of their refund online 24 hours after filing, and can also download the official IRS2Go mobile app to track their refund and access other tax-related information.

With the tax filing deadline approaching on April 15th, the IRS is providing resources to help taxpayers prepare and file their taxes. While the Direct File service is limited to taxpayers with simple tax scenarios, it offers a convenient and free alternative to commercial tax software for eligible taxpayers.