In this article, you will know about the IRS Direct File 2024: Oregon is a Newly Added State; check State Eligible for Direct File. For decades, filing federal income taxes in the United States involved either meticulous manual calculations or relying on professional tax preparers. The Internal Revenue Service announced a significant expansion of its Direct File program, with Oregon becoming the first new state to participate in the 2025 filing season. This initiative provides taxpayers with a free and secure way to electronically file their federal tax returns directly with the IRS. Continue browsing this article to know more about the IRS Direct File 2024, its eligibility, and more.
IRS Direct File 2024
The IRS recognizes the need for an accessible and cost-effective tax-filling option, and the IRS launched the Direct File program as a pilot in 2024 filing season. This initiative allows eligible taxpayers to electronically file their federal tax returns directly with the IRS, completely free of charge.
The Direct File program was initially launched as a pilot in the 2024 filing season. Available to residents in 12 states with uncomplicated tax situations, the pilot proved highly successful. Over 140,000 taxpayers embraced the program, claiming a combined $90 million in refunds and saving an estimated $5.6 million on tax preparation fees. Buoyed by these positive results and overwhelming taxpayer interest, the IRS decided to make Direct File a permanent program.
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Oregon is a Newly Added State
The initial pilot program proved immensely successful. This paved the way for a significant expansion in 2025, with Oregon becoming the first state to officially join the Direct File program. This marks a crucial step forward, potentially leading to the inclusion of more states in the coming years and ultimately offering a wider range of taxpayers the opportunity to file their returns for free.
Oregon’s inclusion marks a crucial step in expanding the IRS Direct File. This paves the way for other states to join the program in the coming years, potentially making free and secure federal tax filing accessible to a broader national audience.
Oregon State Eligibility for Direct File
While specific details on eligibility for the 2025 filing season are yet to be announced, taxpayers can expect the program to largely cater to individuals with straightforward tax situations. this might include those who:
- Earn wages from a single employer with a W-2 form.
- Claim the standard deduction rather than itemizing deductions.
- Have no dependents.
- Do not own a business.
- Do not have significant income from investments or other complex sources.
These are eligibility circumstances for the IRS Direct File; further details will be disclosed soon before the 2025 taxation filing.
Benefits of IRS Direct File
Direct file offers several compelling advantages for eligible taxpayers. This includes:
- Free and Secure: Unlike traditional tax preparation software with potential fees. Direct File is a government service that is provided at no cost. Additionally, e-filing reduces the risk of errors compared to paper filing.
- Fast Refunds: Electronic filing typically leads to faster processing times, potentially leading to quicker receipt of tax refunds.
- Convenience and User-Friendliness: The program is planned to be user-friendly, with a streamlined interface that directs users through the filing procedure step-by-step.
These are some advantages of the IRS Direct File. Therefore, taxpayers with more complex returns who are ineligible for direct file still have options:
- Free File Programs: The IRS Free File program connects eligible taxpayers with free tax preparation software from private companies.
- Low-Cost Preparation Services: Numerous commercial tax preparation services offer varying fee structures, some catering to lower-income individuals.
- Volunteer Assistance: The IRS Volunteer Income Tax Assistance program provides free tax preparation help to eligible low-to-moderate-income individuals, seniors, and persons with disabilities.
These are the few benefits for the individuals who would have complex returns and are ineligible for direct filing.
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Preparing for Direct File
For those planning to utilize Direct File, here are some key documents and information to gather beforehand:
- Social Security Number of yourself, spouses, and dependents.
- Wage and income statements.
- Proof of income
- Records of deductions and credits
- Bank account information
These are the few requirements; for the rest, you have to stay updated on the IRS website for the most reliable and latest information on IRS Direct File.
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