New Direct Tax E-filing Tool Available for Californians Ahead of Tax Season Deadline

Congressman Salud Carbajal is urging Californians to take advantage of a new free tax tool. The tool, available for the first time this tax season, allows eligible United States residents in California to directly file their tax forms with the Internal Revenue Service (IRS) before the approaching deadline of April 15th.

Despite 93% of all tax filings being submitted electronically last year, the IRS did not provide a method for individuals and families to directly file tax documents.

Rep. Carbajal voted to fund the creation and piloting of this new tool in 2022 as part of the landmark Inflation Reduction Act. The Direct File pilot program opened to eligible California taxpayers earlier this month, giving residents an alternative way to file their taxes online for free.

“In our digital age, it is unacceptable that it has taken this long to create a modern pathway for the most basic and often stressful interaction that citizens have with their federal government. My colleagues and I voted to close that digital gap in our nation’s services by creating this free and easy-to-use filing tool, and I would encourage all Central Coast residents to check their eligibility to use it this tax season,” said Rep. Carbajal. “I know this tool won’t be for everyone at first, but I believe providing folks an easy and no-cost way to submit their tax forms not only eases the stress of tax season but also boosts public trust in our institutions.”

To be eligible, taxpayers need the following:

• Be a resident of specific states (California is included in this pilot program)
• Have proper identification (social security number, driver’s license, etc.)
• Only have one or more income types that include a W-2, 1099-G, SSA-1099, or 1099-INT. All other types of income cannot be reported with Direct File.
• Your wages are less than than $200,000 ($160,200 if you had more than one employer); if you’re married filing-separately the wages are less than $125,000; if filing a joint return your spouse’s wages are less than $200,000 or you and your spouse’s total wages are less than $250,000.

Additionally, the Direct File allows standardized deductions, although itemized deductions do not qualify, and claiming tax credits such as for children and dependents.

Central Coast residents can check their eligibility at: directfile.irs.gov

The Direct File tool will help also eligible California taxpayers prepare and file their state tax returns for 2023 quickly and efficiently. The pilot program has been performing well during testing mode, where early users have submitted thousands of tax returns using the system for free. Most of them have given the IRS a positive review.

“The early results from Direct File have shown taxpayers like the ease and convenience of the tool, and moving into the full-scale launch of the pilot will give more taxpayers the chance to use this free option,” said IRS Commissioner Danny Werfel. “Expanding Direct File as the tax deadline approaches will provide more taxpayers a way to file directly with the IRS for free, and it will give us more valuable information to assess this pilot. For those who haven’t filed their taxes in these 12 states, we encourage them to visit IRS.gov and see if Direct File is the right option for them.”

Direct File is designed to be easy for taxpayers to use. Once taxpayers start their return on the Direct File site, they can pause and then securely sign in to finish any time before the April filing deadline.

Users can also get support from special IRS customer service representatives through Direct File’s live chat feature. Direct File, like other electronic filing options, allows taxpayers to typically get their refund in less than 21 days when the direct deposit is chosen.

More information on eligibility and FAQs can be found here.