IRS program will allow taxpayers in 13 states to file for free in 2024: Did Alabama make the list?

IRS program will allow taxpayers in 13 states to file for free in 2024: Did Alabama make the list?

A new program will allow select taxpayers to prepare and file their federal income tax for free next year.

The Internal Revenue Service’s Direct File will be tested in a limited-scope pilot program for the 2024 tax season. Next year, Arizona, California, Massachusetts and New York will integrate state tax filings into the IRS pilot program while taxpayers from Alaska, Florida, New Hampshire, Nevada, South Dakota, Tennessee, Texas, Washington and Wyoming may also be eligible, CNBC reported.

Alabama is not included in the initial program list, though the IRS said all states were invited to join but were not “in a position to join the pilot at this time.”

“This is a critical step forward for this innovative effort that will test the feasibility of providing taxpayers a new option to file their returns for free directly with the IRS,” IRS Commissioner Danny Werfel said in a statement. “In this limited pilot for 2024, we’ll be working closely with the states that have agreed to participate in an important test run of the state integration. This will help us gather important information about the future direction of the Direct File program.”

Direct File will first be introduced to a small group of eligible taxpayers and then, as the season progresses, more people will be able to access the service, based on the type of return they are filing. The initial test will include taxpayers with “relatively simple returns,” but will include popular credits such as the Earned Income Tax and Child Tax credits, the IRS said.

Other filing options, including Free File, will remain in place.