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.
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.
Arizona, California, Massachusetts, and New York are the first states whose residents can test out the IRS direct-filing platform.
The nine other states are Alaska, Florida, New Hampshire, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming.
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.
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.
The IRS will be working with nonprofits, congressional offices, and others to identify eligible taxpayers to test out the pilot.