Still haven’t filed your taxes? Try this new tool for free
The IRS and Treasury department are launching a free pilot program that provides an option for taxpayers to file their federal taxes directly with the U.S. in 12 states, including Nevada.
The goal of the Direct File pilot program, which includes a Spanish-language version, is to make it easier for people to file their taxes, according to the Department of Treasury. Taxpayers with simple tax situations can file on a smartphone, laptop, tablet or desktop, and the program shows taxpayers the math to ensure their return is accurate.
“Direct File ensures taxpayers get their full refund by showing them the numbers and explaining credits they are eligible for,” said Wally Adeyemo, deputy secretary of the Treasury, in a statement. “Our priority in launching this new service is to save taxpayers time and money they can spend on themselves and their families.”
Nevada — which has no state income tax — was chosen to be part of the pilot program along with 11 other states, including California, Arizona, New York and Texas, that either have no state income tax or have an option for direct file, according to a Treasury official.
The treasury department estimates that one-third of all federal income tax returns filed could be prepared using the new program, which was funded through the Biden administration’s Inflation Reduction Act.
About 480,000 Nevadans may be eligible to use the tool this filing season, according to the treasury department. That includes a parent with W-2 income that claims the Earned Income Tax Credit and Child Tax Credit, a recent graduate with W-2 income who pays student loan interest and a retired senior citizen with social security income.
National Economic Advisory Lael Brainard said Direct File has no “expensive and unnecessary filing fees and no upselling.”
There are free tax services already available, such as FreeTaxUSA and TaxAct, but the Direct File Pilot Program will have no hidden fees and will not sell or share people’s data, according to a Treasury official.
The Direct File Pilot can be reached online at www.irs.gov/about-irs/strategic-plan/irs-direct-file-pilot#income.
