IRS Direct File 2024: Oregon is a Newly Added State: What You Need to Know

The IRS Direct File program represents a significant advancement in simplifying the tax filing process for U.S. taxpayers. This initiative, which began as a pilot in the 2024 filing season, aims to provide a free, secure, and user-friendly way to file federal tax returns directly with the IRS. With Oregon recently joining as the first new state, the program is set to expand further, offering broader accessibility to taxpayers across the country.

IRS Direct File 2024 Overview

Launched in 2024, the IRS Direct File program was introduced to offer a more accessible and cost-effective tax filing option. This program enables eligible taxpayers to electronically submit their federal tax returns without any fees. Initially available to residents in 12 states, the pilot program saw overwhelming success, with over 140,000 taxpayers using the service, claiming a combined $90 million in refunds, and saving approximately $5.6 million in tax preparation fees. Due to this positive response, the IRS has decided to make Direct File a permanent fixture, with plans for expansion in the coming years.

Oregon’s Inclusion and Future Expansion

Oregon’s addition to the Direct File program marks a significant milestone. As the first new state to join since the program’s inception, Oregon’s inclusion could potentially open the door for other states to follow suit. This expansion aims to make free federal tax filing accessible to a broader audience, potentially benefiting millions of taxpayers nationwide.

Eligibility Criteria for Direct File

While detailed eligibility requirements for the 2025 filing season have yet to be finalized, the program is expected to cater primarily to taxpayers with straightforward tax situations. The following criteria are likely to apply:

• Wages from a Single Employer: Taxpayers earning wages from a single source, reported via a W-2 form.
• Standard Deduction: Those who claim the standard deduction instead of itemizing deductions.
• No Dependents: Individuals or couples without dependents.
• No Business Income: Taxpayers without business income or complex financial situations, such as significant investment income.

The IRS will release further details on eligibility closer to the 2025 tax filing season.

Benefits of IRS Direct File

The Direct File program offers several key advantages:

• Cost-Free and Secure: Unlike many tax preparation services that charge fees, Direct File is completely free, reducing the financial burden on taxpayers. Additionally, electronic filing reduces the likelihood of errors compared to paper returns.
• Expedited Refunds: E-filing generally results in faster processing times, potentially leading to quicker refunds.
• User-Friendly Experience: The program is designed to guide users through the filing process with a streamlined interface, making it accessible even for those with limited tax knowledge.

Options for Complex Tax Situations

For taxpayers with more complex tax situations, other resources are available:

• IRS Free File Program: Offers free tax preparation software from private companies for eligible taxpayers.
• Low-Cost Preparation Services: Commercial tax preparation services provide various pricing options, often catering to lower-income individuals.
• Volunteer Assistance Programs: The IRS Volunteer Income Tax Assistance (VITA) program offers free tax help to qualifying individuals, including low-to-moderate-income taxpayers, seniors, and persons with disabilities.

Preparing for Direct File

To prepare for using the Direct File program, taxpayers should gather the following documents and information:

• Social Security numbers for all individuals listed on the tax return.
• Wage and income statements (W-2, 1099 forms).
• Proof of income and records of deductions and credits.
• Bank account information for direct deposit of refunds.

Staying updated on the latest IRS guidelines and eligibility criteria is crucial for a smooth filing experience.

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