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There's a new option to file your tax return through the IRS

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The Internal Revenue Service (IRS) will test out its pilot free e-filing system starting January 2024 on a select few participants across 13 states.

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The IRS had announced that it was working on building the free e-filing tool earlier this year to help Americans save almost $11 billion/year on filing returns.

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Arizona, California, Massachusetts, and New York are the first states whose residents can test out the IRS direct-filing platform.

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The nine other states are Alaska, Florida, New Hampshire, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming.

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The program is a result of 2022's Inflation Reduction Act. Its $80 billion funding was meant for the IRS to assess the benefits of a free tax-filing system.

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Contract and self-employed workers filing Form Schedule C and those claiming premium tax credits to reduce the cost of health insurance will not be eligible.

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The IRS will be working with nonprofits, congressional offices, and others to identify eligible taxpayers to test out the pilot.

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