In an exciting move for Illinois residents, many taxpayers in the state will soon be able to file their federal taxes online for free. Starting January 27, almost 2 million people in Illinois will be able to use the IRS Direct File service to easily prepare and file their federal tax returns at no cost. This initiative, introduced by Governor J.B. Pritzker, is expected to save Illinoisans money they would normally spend on tax preparation services.
What is IRS Direct File?
The IRS Direct File service is a new online tool that allows eligible taxpayers to file their federal income tax returns electronically, without the need for a paid tax preparer. This service is available for individuals who meet specific requirements, and it’s completely free. After filing their federal taxes, users will also be able to directly link to MyTax Illinois, the state’s free tax filing system, to file their state taxes.
How It Works
The process is simple and accessible. Taxpayers can use a computer, tablet, or smartphone to file their tax returns. The IRS Direct File service provides step-by-step guidance and includes a chatbot that helps users with questions in both English and Spanish.
Governor Pritzker expressed that this initiative will “put money typically spent on tax preparation services back into the pockets of hardworking families across Illinois.” He also emphasized that this effort aims to reduce the stress and financial burden many Illinoisans face during tax season.
Why Is This Happening?
The introduction of IRS Direct File comes as part of the Inflation Reduction Act, signed into law in 2022 by President Joe Biden. Initially, this service was tested in 2024, and in 2025, it will be made available to taxpayers in 25 states, including Illinois. It is estimated that by 2025, more than 30 million taxpayers across the United States will be able to use this free service.
Eligibility for IRS Direct File
While the IRS Direct File service is available to many, not everyone qualifies. The service is designed for simple tax situations. Some of the common reasons why someone might not qualify include:
- Having unreported income, like cash tips or alimony
- Earning income from gig work or other sources that require special tax forms
- Using a Medical Savings Account or taking distributions from retirement accounts like 401(k)s or pensions
- Having wages that exceed certain limits, such as $200,000 for single filers or $250,000 for those who file jointly
- Claiming additional credits for education, home energy updates, or adoption
To check if you qualify for IRS Direct File, you can visit the official IRS website or follow the links provided by your state tax authorities.
State Tax Filing Made Easy Too
Once federal taxes are filed, the IRS Direct File service links users to MyTax Illinois, where they can also file their state taxes for free. This integration of federal and state tax filing makes the process much smoother and helps people save even more money.
How to Get Started
To use IRS Direct File, taxpayers should visit the official IRS website. You’ll need to provide basic information about your income and personal details, and the system will guide you through the process. There are also helpful resources available, such as the chatbot, which can assist with questions in both English and Spanish.
By taking advantage of this free filing service, you can save time, money, and the hassle of preparing your taxes manually or hiring a tax professional.
Conclusion
The introduction of IRS Direct File in Illinois is a great step toward making tax filing easier and more affordable. With millions of people eligible for this free service, it’s an opportunity that many taxpayers should consider. Whether you’re filing for the first time or you’ve done it before, this online service will make the process much more accessible, affordable, and less stressful.
(Source : newsbreak.com)