**Taxpayers in 24 States to Benefit from Free Filing Program**
In a move to simplify tax filing, the IRS and U.S. Department of the Treasury have announced that over 30 million Americans in 24 states will be eligible for Direct File, a free tax filing program, starting next year. This expansion builds upon the pilot program launched in 12 states for the 2024 filing season.
The program will now cover a wider range of tax situations, including interest income above $1,500, pension and annuity income, and Alaska Permanent Fund Dividends. Additionally, support for the child and dependent care credit, premium tax credit for Marketplace insurance, and retirement saver’s credit will be added.
To participate, filers must claim the standard deduction and meet specific eligibility criteria. The program will continue to allow certain “above-the-line” deductions, including tax breaks for student loan interest and educator expenses, and will now also support health savings account contributions.
IRS Commissioner Danny Werfel emphasized the goal of gradually expanding the Direct File scope to support more common tax situations, particularly those impacting working families. The program aims to provide a convenient and cost-effective solution for taxpayers, with over 140,000 users having already filed returns and saved an estimated $5.6 million in tax preparation fees during the pilot.
The nationwide expansion of Direct File is expected to continue, with all 50 states invited to join the program. As the program grows, it is likely to benefit millions more taxpayers, making tax filing easier and more affordable.
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