New direct file system rolls out to make tax season easier
WASHINGTON (NEXSTAR) – Time is running out, as tax day is approaching. The IRS has a new program to make filing your taxes easier and cheaper.
"As simple as possible, as fast as possible, as free as possible," Deputy Treasury Secretary Wally Adeyemo said.
It's called direct file and Adeyemo is encouraging people to see if they qualify for what he calls an easy to use service.
"This is a tool that allows Americans with simple tax returns, this year in 12 states to be able to file their taxes through the IRS directly," Adeyemo said.
Adeyemo said since March 12th, about 50,000 people have utilized direct file so far.
"This year is a pilot year. Our goal is to use this as an opportunity to target the 19 million Americans who are eligible this year," Adeyemo said.
There are some limitations when it comes to direct file. Adeyemo says this program is meant for people who only have a W-2.
Other forms of income, like stock trading or rental income, can't be reported with direct file.
"Our goal is never going to be to design a product that's going to work for people who have very complicated taxes," Adeyemo said.
The IRS hopes to expand this program next year, to benefit more people.
"To make as easy as possible for them to do the right thing, which is what most Americans do, which is file their taxes on time," Adeyemo said.
Americans have until April 15th to file their taxes unless they ask for an extension.