Unless it’s changed from the pilot, it’s only useful if you file a 1040EZ or take some really basic deductions. Anything beyond the basics, like any kind of investments, means you need to use a different tool.
But freetaxusa is still free for all but the most complex cases.
The pilot program targeted people with simple tax returns based on W-2 forms. In her remarks today Yellen said that over the next few years they will expand Direct File to support more situations.
But even that would cover a large percentage of the American workforce, and I imagine over a few years, it will grow to cover all users that don’t need personal accountants. Progress is progress.
Personally, I hope this transitions into a system where they email you a proposed return and you do nothing to accept it (only needing to take action if there’s an issue).
No lawsuit launched yet to my knowledge, just sternly worded letters saying please stop helping taxpayers instead of letting predatory companies like Intuit fleece money off of them.
I would expect them to try something soon though with this announced.
Wait really? What’s the catch?
Unless it’s changed from the pilot, it’s only useful if you file a 1040EZ or take some really basic deductions. Anything beyond the basics, like any kind of investments, means you need to use a different tool.
But freetaxusa is still free for all but the most complex cases.
From the article:
But even that would cover a large percentage of the American workforce, and I imagine over a few years, it will grow to cover all users that don’t need personal accountants. Progress is progress.
Personally, I hope this transitions into a system where they email you a proposed return and you do nothing to accept it (only needing to take action if there’s an issue).
I’d say it’s still a win, and I’m hoping they expand upon it.
Only catch is Republicans probably launching some type of legal action to try and stop it.
https://www.nysscpa.org/news/publications/the-trusted-professional/article/13-republican-ags-seek-to-stop-irs-s-fre-direct-file-pilot-program-020224
No lawsuit launched yet to my knowledge, just sternly worded letters saying please stop helping taxpayers instead of letting predatory companies like Intuit fleece money off of them.
I would expect them to try something soon though with this announced.
You have to register an account with the 3rd party service ID.me that uses biometrics like facial recognition. Their privacy policy is horrendous.
The only reason I haven’t used it this year.
I was in a pilot state (Arizona), and I looked into it. It’s only for federal taxes. You need to file state taxes separately.
There are already several online tax solutions that offer free federal and charge for state.
I expect that you’ll have to pay the money according to the statement