There’s Still Time to File Taxes for Free!
Published on April 3, 2024
New IRS offering
This tax season, Massachusetts and New Hampshire are two of 12 states piloting a new, free tax filing program: Direct File, offered through the Internal Revenue Service (IRS).
Data provided by the IRS following Fiscal Year 2022 shows that most Americans filed their taxes through a preparer or online service. Those options, often, come at a price.
This new IRS offering is hoping to curb the financial barrier that comes with this yearly requirement.
Do you qualify for the program?
If you make under $79,000 annually, this may be the right move for you. There are, however, a few more stipulations to qualify for the program, which include, but aren’t limited to:
- You’ve worked in the state for all of 2023
- You’ve made all your income only in the state you’re filing in
- You’re filing one of these forms:
- W-2: Income from an employer
- 1099-G: Unemployment compensation
- SSA-1099: Social Security benefits
- 1099-INT (boxes 1 and 3): $1,500 or less in interest income/U.S. Savings bonds/Treasury Obligations
Itemizing deductions
Large charity donations or anyone who’s paid high property taxes may not be eligible. You won’t be able to itemize deductions with Direct File. Itemized deductions are expenses that are eligible as a reduction to your taxable income.
A few more examples of itemized deductions that could disqualify you would be:
- 7.5% of your Adjusted Gross Income (AGI) was spent on medical expenses
- High state income taxes paid
- High mortgage interest paid
IRS.gov
Anyone who has sizable, itemized deduction(s) should consider another route when filing.
Taxpayers are encouraged to learn more about the program and see if they meet the criteria to give it a try! The IRS.gov website providesa questionnaire to help you determine if you’re a match.
Remember… Tax Day is April 17! File your taxes before they’re late!
