IRS Direct File is now available to all eligible taxpayers in a dozen states, with exactly a month to go before the deadline to file your federal tax return.
Direct File has had a conservative rollout by all accounts. The IRS launched its pilot for Direct File on Jan. 29, but only for a preselected group of government employees to file their taxes.
In the following weeks, taxpayers were able to sign up to use Direct File in waves, with the IRS making signups for new users available in brief windows before closing it again. Now, the IRS is ready to take off the training wheels.
I got to test the software because I live in New York — one of the 12 states Direct File accepts federal tax returns from in 2024. Due to Direct File’s many restrictions around income, however, I wasn’t able to complete a return this year with the service.
The free filing software is easy enough to use that I can see myself and others using Direct File in the future as the program expands the tax situations it covers. For now, it lags well behind industry leaders. It does have the potential to be a real standout in the industry going forward, simply by integrating more of the personal tax and income information the IRS receives each year to get you started.
What’s it like to use IRS Direct File?
IRS Direct File is a clean and straightforward online tax preparation software. It’s bare bones. But what it does offer, it does well.
Before using Direct File, you’ll have to set up an ID.ME account to verify your identity. This preliminary process can be quite buggy. I experienced some difficulties with both uploading photos of my driver’s license and registering a selfie using the third-party’s technology. Logging on to Direct File with ID.ME after requires standard two-factor authentication using your phone.
