Direct File, e-File Project for IRS Tax Returns

File, e-File
Taxes Direct

Direct File is a limited pilot project provided by the IRS. Based on certain requirements, taxpayers can electronically file current year tax returns directly with the IRS if they live in certain states - see below.

If you prepare and e-file your taxes directly via eFile.com, the Direct File qualifications or requirements below do not apply. Additionally, only limited states are participating in the IRS Direct File program. e-File your IRS and state taxes together on eFile.com instead so you do not need to mail in your state return.

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What Are the Direct File Qualification Requirements?

To file online anywhere, you will need a Social Security number (SSN) or Individual Taxpayer Identification Number (ITIN) for yourself, your spouse, or dependents you claim. You will also need an Adoption Taxpayer Identification Number (ATIN) for an adopted dependent. as well as a current driver's license, state identifying document, or passport for yourself.

Unlike eFile.com, Direct File is limited to the following income, tax credit, and tax deduction types:

What Types of Income Qualify for IRS Direct File?

• W-2 wage income
• 1099-G Unemployment compensation
• 1099-INT Interest income of $1,500 or less
• SSA-1099 Social Security and RRB-1099 railroad retirement income.

This means you cannot use IRS Direct File for the following income types:

• Payment apps or online marketplaces (Form 1099-K)
• Self-employment, business, independent contractor, and gig work (Form 1099-NEC)
• Rent, awards, and more (Form 1099-MISC)
• Individual retirement arrangements or IRAs, pensions, and any retirement account distributions (Form 1099-R)
• Allocated and/or unreported tips
• Alimony that is included in your income.

Important: all of the above income types are supported here on eFile.com.

What Deductions Can I Claim for IRS Direct File?

The IRS tool only supports the standard deduction which means you cannot use it to itemize your deductions via Schedule A. Also included are:

• Educator expenses
• Student loan interest.

This means you cannot use IRS Direct File to claim the following credits:

• Any of the deductions on Schedule A (mortgage interest, state and local taxes, etc.)
• Deductions from business income via Schedule C, rental income from Schedule E, or farming income on Schedule F
• Contributions to a health savings account or other deductible account
• Capital losses or gambling losses.

You can claim all of the above here on eFile.com.

What Healthcare Qualifies for IRS Direct File?

The type of healthcare you had may affect whether or not you can use IRS direct file. You can use it if you receive:

• No health insurance
• Health insurance through your employer
• Medicare
• Veterans Affairs (VA) health care
• Private health insurance
• Your state's Medicaid or Children's Health Insurance Program (CHIP).

You can use the IRS tool if you received a 1095-B or 1095-C. You cannot use the IRS Direct File if you have health insurance marketplace and receive a Form 1095-A - you can use eFile.com to add this form to your return and claim the Premium Tax Credit.

What Credits Are Available for IRS Direct File?

The IRS tool limits certain credits - eFile.com does not! The below credits are supported on the IRS tool:

• Earned Income Tax Credit | see our EITCucator or EITC calculator
• Child Tax Credit | calculate your Child Tax Credit
• Credit for Other Dependents | learn who may qualify on your return.

On eFile.com, the above limitations do not apply to your return. You can claim all the available tax credits and deductions for individuals plus choose to itemize deductions if it benefits you more. You can also add income from self-employment as well as all other 1099 sources as an individual.

Direct File State Requirements, Limits

Only eligible taxpayers who resided in any of these 12 states will have access to the Direct File pilot program:

• Arizona
• California
• Florida (no state incomes taxes)
• Massachusetts
• Nevada (no state incomes taxes)
• New Hampshire (no state incomes taxes)
• New York
• South Dakota (no state incomes taxes)
• Tennessee (no state incomes taxes)
• Texas (no state incomes taxes)
• Washington state (no state incomes taxes)
• Wyoming (no state incomes taxes)

The Direct File pilot does not prepare state returns together with the IRS tax return. Residents in Arizona, California, Massachusetts, and New York will be guided to state-supported tax tools on how to prepare respective state tax returns. Residents of Washington state can apply for the Working Families Tax Credit.

File your IRS and state returns on eFile.com so you do not have to go to separate sites and spend time re-entering all your information. Add all your details once, eFileIT, and be done with IT. It = Income Taxes.

Important: You can only e-file your state return with your IRS return - in other words, you cannot file e-file your IRS return on one website and then e-file your state return on another site. Thus, prepare your returns together on eFile.com.

Start, Prepare Tax Returns Free via eFile.com

Every taxpayer on eFile.com starts a tax return for free.

Subsequently, many taxpayers qualify for free tax returns on eFile.com. Only taxpayers who have more complicated returns and thus require more tax forms are required to pay a tax preparation fee; e-filing is included and is free.

• Overview of free and paid tax returns on eFile.com
• Your free personal support page with Taxpert^® support
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• How much is free?
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