taxes

IRS pilot program aims to make filing easier for Mass. taxpayers

The IRS Direct File pilot program launched this week for residents of 12 states, including Massachusetts

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The tax filing deadline is a little more than a month away, and millions of Massachusetts taxpayers can now take advantage of a free and easy way to send their returns to the IRS.

The new IRS Direct File pilot program launched this week across 12 states. Taxpayers who have simple W-2s and claim a standard deduction are eligible to use the program.

People with multiple income streams or who need to take certain types of tax credits and deductions do not qualify for the free tool.

The program is part of the agency's effort to build out a free government service that could replace some taxpayers' use of commercial tax preparation software.

Sen. Elizabeth Warren, D-Massachusetts, has been an advocate for making tax filing simpler and more affordable for millions of Americans.

"Nobody wants to file taxes, right? But when you do pay your taxes, it ought to be easy and it ought to be free," Warren said. "The average individual filer today pays about $150 and spends about nine hours to get their taxes filed."

According to the IRS, the program has "no hidden junk fees, live customer support, and initial users have saved hundreds of dollars."

"More and more and more giant companies have figured out how to just take a little bite out of your pocket," Warren said. "It's trying to put government on the side of people and help them so they're not getting cheated, tricked, trapped, bitten at, and they have more money in their pockets and more security in their lives for themselves and for their children."

The Direct File program does not support state returns, but the software will guide users from Massachusetts to a state-supported tax-prep tool.

According to the IRS, the Direct File program supports W-2 income, Social Security and railroad retirement, unemployment benefit income and interest of up to $1,500. The credits it can process include earned income tax credit, child tax credit, and credit for other dependents. Standard deductions, such as for student loan interest and educator expenses, are included.

Visit the IRS' website to see if you qualify for Direct File.

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