The Internal Revenue Service announced Thursday that its experimental Direct File free tax filing option for simplified tax returns will become a permanent option starting next year.
In a statement, the IRS, in conjunction with the U.S. Department of the Treasury, said its Direct File pilot program, rolled out on a limited basis earlier this year, allowed 140,000 taxpayers to claim more than $90 million refunds and save approximately $5.6 million in reporting. costs.
“President Biden is committed to saving Americans time and money and ensuring families receive the tax benefits they are owed. Providing a free tool to all Americans who want the option to file directly with the IRS is essential to achieving these goals,” U.S. Treasury Secretary Janet L. Yellen said in a statement.
“After a successful pilot, we are making Direct File permanent and calling on all 50 states to offer this free filing option to their residents. The Treasury Department and the IRS look forward to working with states to expand Direct File to Americans across the country.
Direct File is designed for filers with relatively simple tax returns – like W2s or Social Security income – and who take the standard deduction. Other types of income, such as those from gig work or other business income, are not eligible.
Direct File is not a mandatory government program and does not replace existing filing services.
But advocates have long called for a program to reduce or even eliminate the cost of filing, especially in the digital age.
“President Biden is working to lower costs and make the tax system fairer for Americans, and that includes providing a free and easy way to file taxes, without costly and unnecessary filing fees and upselling” , declared national economic advisor Lael Brainard in a press release. statement.
Brainard applauded Biden, saying the administration’s “investment in modernizing the IRS is already paying off, and we look forward to making this resource available to more Americans across the country.”
This story first appeared on NBCNews.com. More from NBC News:
NBC Chicago
