Pennsylvania Will Have IRS Free File Program Available to Taxpayers For 2025 Tax Season
Gov. Josh Shapiro and U.S. Treasury Secretary Janet Yellen made the announcement Tuesday in Philadelphia
July 30, 2024
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Gov. Josh Shapiro and U.S. Treasury Secretary Janet Yellen made the announcement Tuesday in Philadelphia
by Kim Lyons, Pennsylvania Capital-Star
July 30, 2024
U.S. Treasury Secretary Janet Yellen and Gov. Josh Shapiro on Tuesday announced Pennsylvania is the latest state to join the Internal Revenue Service’s new free tax filing system.
“Taxpayers across the country have had to pay for-profit companies hundreds of dollars a year to file their taxes, and too many eligible taxpayers have missed out on tax credits that would give them crucial breathing room in their household budgets,” Yellen said Tuesday at a press conference in Philadelphia. “The Inflation Reduction Act has enabled us to change this; in the less than two years since it was passed, we have driven significant transformation at the Internal Revenue Service to drastically improve the taxpayer experience.”
Twelve states joined the Direct File pilot program during the 2024 tax season, the Treasury Department reported, drawing some 140,000 taxpayers who claimed $90 million in refunds and saved roughly $5.6 million in fees they would have otherwise paid to private tax return prep companies.
Taxpayers also liked the product and they found it easy to use, Yellen said, noting that 90% of users who responded to a survey rated their experience with Direct File as excellent or above average. “They appreciated that it saved them time. Filing allowed them to quickly fix mistakes, provided customer support and that there were no fees or upsells, and using direct file increased public trust in the Internal Revenue Service,” she added.
The IRS said in June it would make the free filing system permanent and invited states to participate. Among the tens of billions of dollars Congress authorized for the IRS in its 2022 budget reconciliation law, otherwise known as the Inflation Reduction Act, $15 million was earmarked for exploring a way for the public to electronically file federal returns for free directly to the government, rather than through a third party.
“When we fought so hard for the Inflation Reduction Act Two years ago, tucked into that truly monumental, transformative piece of legislation, was IRS direct file,” U.S. Rep. Brendan Boyle (D-01) said Tuesday. “A number of us from the Ways and Means Committee on which I serve had pushed for years and years to give the IRS more resources.” He said the number one constituent complaint he had heard for years was about the IRS.
Congressional Republicans and GOP state officials, however, have criticized the free file program as redundant, “unconstitutional” and a threat to state tax revenue.
Many cited the already established IRS Free File program, a partnership between the federal agency and private tax prep software companies that provide free federal return filing options. But that program has been riddled with issues, and a 2019 ProPublica investigation revealed deliberate tactics by Free File participant Intuit, maker of TurboTax, to hide access to the free option.
Nearly two dozen state auditors, comptrollers and treasurers from 18 states urged the IRS to “shut down” the new Direct File pilot program because users could be confused about having to file a state return separately, therefore resulting in a loss in state revenue.
Boyle said Tuesday he would work to protect programs like Direct File in the federal budget, which would be easier if Democrats retake the majority in the U.S. House.
“When we talk about the additional resources that we devoted to the IRS, it’s to do things like this. It’s to put the service back in the Internal Revenue Service,” Boyle said. “If those efforts succeed, and in the future, perhaps near future, money is stripped away from the IRS, it’s things like Direct File that are under threat.”
U.S. Sen. Bob Casey, who had urged the federal government to make the program permanent and to expand it to Pennsylvania, said in a statement Tuesday that Free File could save Pennsylvanians $630 million in combined annual tax filing fees and additional tax credits claimed directly from the IRS.
“Thanks to this program, Americans can confidently file their taxes and keep more of their hard-earned dollars,” Casey said.
Shapiro called the program a “game changer,” and said it would be available for all Pennsylvanians in the next tax filing season.
“This is going to allow people ease of access to their government, showing that there is no wrong order, saving them hundreds, if not thousands of dollars on software and other services that maybe they really didn’t need in the first place,” he said.
Ashley Murray of States Newsroom’s D.C. bureau contributed reporting
Pennsylvania Capital-Star is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Pennsylvania Capital-Star maintains editorial independence. Contact Editor Kim Lyons for questions: info@penncapital-star.com. Follow Pennsylvania Capital-Star on Facebook and X.
by Kim Lyons, Pennsylvania Capital-Star
July 30, 2024
U.S. Treasury Secretary Janet Yellen and Gov. Josh Shapiro on Tuesday announced Pennsylvania is the latest state to join the Internal Revenue Service’s new free tax filing system.
“Taxpayers across the country have had to pay for-profit companies hundreds of dollars a year to file their taxes, and too many eligible taxpayers have missed out on tax credits that would give them crucial breathing room in their household budgets,” Yellen said Tuesday at a press conference in Philadelphia. “The Inflation Reduction Act has enabled us to change this; in the less than two years since it was passed, we have driven significant transformation at the Internal Revenue Service to drastically improve the taxpayer experience.”
Twelve states joined the Direct File pilot program during the 2024 tax season, the Treasury Department reported, drawing some 140,000 taxpayers who claimed $90 million in refunds and saved roughly $5.6 million in fees they would have otherwise paid to private tax return prep companies.
Taxpayers also liked the product and they found it easy to use, Yellen said, noting that 90% of users who responded to a survey rated their experience with Direct File as excellent or above average. “They appreciated that it saved them time. Filing allowed them to quickly fix mistakes, provided customer support and that there were no fees or upsells, and using direct file increased public trust in the Internal Revenue Service,” she added.
The IRS said in June it would make the free filing system permanent and invited states to participate. Among the tens of billions of dollars Congress authorized for the IRS in its 2022 budget reconciliation law, otherwise known as the Inflation Reduction Act, $15 million was earmarked for exploring a way for the public to electronically file federal returns for free directly to the government, rather than through a third party.
“When we fought so hard for the Inflation Reduction Act Two years ago, tucked into that truly monumental, transformative piece of legislation, was IRS direct file,” U.S. Rep. Brendan Boyle (D-01) said Tuesday. “A number of us from the Ways and Means Committee on which I serve had pushed for years and years to give the IRS more resources.” He said the number one constituent complaint he had heard for years was about the IRS.
Congressional Republicans and GOP state officials, however, have criticized the free file program as redundant, “unconstitutional” and a threat to state tax revenue.
Many cited the already established IRS Free File program, a partnership between the federal agency and private tax prep software companies that provide free federal return filing options. But that program has been riddled with issues, and a 2019 ProPublica investigation revealed deliberate tactics by Free File participant Intuit, maker of TurboTax, to hide access to the free option.
Nearly two dozen state auditors, comptrollers and treasurers from 18 states urged the IRS to “shut down” the new Direct File pilot program because users could be confused about having to file a state return separately, therefore resulting in a loss in state revenue.
Boyle said Tuesday he would work to protect programs like Direct File in the federal budget, which would be easier if Democrats retake the majority in the U.S. House.
“When we talk about the additional resources that we devoted to the IRS, it’s to do things like this. It’s to put the service back in the Internal Revenue Service,” Boyle said. “If those efforts succeed, and in the future, perhaps near future, money is stripped away from the IRS, it’s things like Direct File that are under threat.”
U.S. Sen. Bob Casey, who had urged the federal government to make the program permanent and to expand it to Pennsylvania, said in a statement Tuesday that Free File could save Pennsylvanians $630 million in combined annual tax filing fees and additional tax credits claimed directly from the IRS.
“Thanks to this program, Americans can confidently file their taxes and keep more of their hard-earned dollars,” Casey said.
Shapiro called the program a “game changer,” and said it would be available for all Pennsylvanians in the next tax filing season.
“This is going to allow people ease of access to their government, showing that there is no wrong order, saving them hundreds, if not thousands of dollars on software and other services that maybe they really didn’t need in the first place,” he said.
Ashley Murray of States Newsroom’s D.C. bureau contributed reporting
Pennsylvania Capital-Star is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Pennsylvania Capital-Star maintains editorial independence. Contact Editor Kim Lyons for questions: info@penncapital-star.com. Follow Pennsylvania Capital-Star on Facebook and X.
by Kim Lyons, Pennsylvania Capital-Star
July 30, 2024
U.S. Treasury Secretary Janet Yellen and Gov. Josh Shapiro on Tuesday announced Pennsylvania is the latest state to join the Internal Revenue Service’s new free tax filing system.
“Taxpayers across the country have had to pay for-profit companies hundreds of dollars a year to file their taxes, and too many eligible taxpayers have missed out on tax credits that would give them crucial breathing room in their household budgets,” Yellen said Tuesday at a press conference in Philadelphia. “The Inflation Reduction Act has enabled us to change this; in the less than two years since it was passed, we have driven significant transformation at the Internal Revenue Service to drastically improve the taxpayer experience.”
Twelve states joined the Direct File pilot program during the 2024 tax season, the Treasury Department reported, drawing some 140,000 taxpayers who claimed $90 million in refunds and saved roughly $5.6 million in fees they would have otherwise paid to private tax return prep companies.
Taxpayers also liked the product and they found it easy to use, Yellen said, noting that 90% of users who responded to a survey rated their experience with Direct File as excellent or above average. “They appreciated that it saved them time. Filing allowed them to quickly fix mistakes, provided customer support and that there were no fees or upsells, and using direct file increased public trust in the Internal Revenue Service,” she added.
The IRS said in June it would make the free filing system permanent and invited states to participate. Among the tens of billions of dollars Congress authorized for the IRS in its 2022 budget reconciliation law, otherwise known as the Inflation Reduction Act, $15 million was earmarked for exploring a way for the public to electronically file federal returns for free directly to the government, rather than through a third party.
“When we fought so hard for the Inflation Reduction Act Two years ago, tucked into that truly monumental, transformative piece of legislation, was IRS direct file,” U.S. Rep. Brendan Boyle (D-01) said Tuesday. “A number of us from the Ways and Means Committee on which I serve had pushed for years and years to give the IRS more resources.” He said the number one constituent complaint he had heard for years was about the IRS.
Congressional Republicans and GOP state officials, however, have criticized the free file program as redundant, “unconstitutional” and a threat to state tax revenue.
Many cited the already established IRS Free File program, a partnership between the federal agency and private tax prep software companies that provide free federal return filing options. But that program has been riddled with issues, and a 2019 ProPublica investigation revealed deliberate tactics by Free File participant Intuit, maker of TurboTax, to hide access to the free option.
Nearly two dozen state auditors, comptrollers and treasurers from 18 states urged the IRS to “shut down” the new Direct File pilot program because users could be confused about having to file a state return separately, therefore resulting in a loss in state revenue.
Boyle said Tuesday he would work to protect programs like Direct File in the federal budget, which would be easier if Democrats retake the majority in the U.S. House.
“When we talk about the additional resources that we devoted to the IRS, it’s to do things like this. It’s to put the service back in the Internal Revenue Service,” Boyle said. “If those efforts succeed, and in the future, perhaps near future, money is stripped away from the IRS, it’s things like Direct File that are under threat.”
U.S. Sen. Bob Casey, who had urged the federal government to make the program permanent and to expand it to Pennsylvania, said in a statement Tuesday that Free File could save Pennsylvanians $630 million in combined annual tax filing fees and additional tax credits claimed directly from the IRS.
“Thanks to this program, Americans can confidently file their taxes and keep more of their hard-earned dollars,” Casey said.
Shapiro called the program a “game changer,” and said it would be available for all Pennsylvanians in the next tax filing season.
“This is going to allow people ease of access to their government, showing that there is no wrong order, saving them hundreds, if not thousands of dollars on software and other services that maybe they really didn’t need in the first place,” he said.
Ashley Murray of States Newsroom’s D.C. bureau contributed reporting
Pennsylvania Capital-Star is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Pennsylvania Capital-Star maintains editorial independence. Contact Editor Kim Lyons for questions: info@penncapital-star.com. Follow Pennsylvania Capital-Star on Facebook and X.
by Kim Lyons, Pennsylvania Capital-Star
July 30, 2024
U.S. Treasury Secretary Janet Yellen and Gov. Josh Shapiro on Tuesday announced Pennsylvania is the latest state to join the Internal Revenue Service’s new free tax filing system.
“Taxpayers across the country have had to pay for-profit companies hundreds of dollars a year to file their taxes, and too many eligible taxpayers have missed out on tax credits that would give them crucial breathing room in their household budgets,” Yellen said Tuesday at a press conference in Philadelphia. “The Inflation Reduction Act has enabled us to change this; in the less than two years since it was passed, we have driven significant transformation at the Internal Revenue Service to drastically improve the taxpayer experience.”
Twelve states joined the Direct File pilot program during the 2024 tax season, the Treasury Department reported, drawing some 140,000 taxpayers who claimed $90 million in refunds and saved roughly $5.6 million in fees they would have otherwise paid to private tax return prep companies.
Taxpayers also liked the product and they found it easy to use, Yellen said, noting that 90% of users who responded to a survey rated their experience with Direct File as excellent or above average. “They appreciated that it saved them time. Filing allowed them to quickly fix mistakes, provided customer support and that there were no fees or upsells, and using direct file increased public trust in the Internal Revenue Service,” she added.
The IRS said in June it would make the free filing system permanent and invited states to participate. Among the tens of billions of dollars Congress authorized for the IRS in its 2022 budget reconciliation law, otherwise known as the Inflation Reduction Act, $15 million was earmarked for exploring a way for the public to electronically file federal returns for free directly to the government, rather than through a third party.
“When we fought so hard for the Inflation Reduction Act Two years ago, tucked into that truly monumental, transformative piece of legislation, was IRS direct file,” U.S. Rep. Brendan Boyle (D-01) said Tuesday. “A number of us from the Ways and Means Committee on which I serve had pushed for years and years to give the IRS more resources.” He said the number one constituent complaint he had heard for years was about the IRS.
Congressional Republicans and GOP state officials, however, have criticized the free file program as redundant, “unconstitutional” and a threat to state tax revenue.
Many cited the already established IRS Free File program, a partnership between the federal agency and private tax prep software companies that provide free federal return filing options. But that program has been riddled with issues, and a 2019 ProPublica investigation revealed deliberate tactics by Free File participant Intuit, maker of TurboTax, to hide access to the free option.
Nearly two dozen state auditors, comptrollers and treasurers from 18 states urged the IRS to “shut down” the new Direct File pilot program because users could be confused about having to file a state return separately, therefore resulting in a loss in state revenue.
Boyle said Tuesday he would work to protect programs like Direct File in the federal budget, which would be easier if Democrats retake the majority in the U.S. House.
“When we talk about the additional resources that we devoted to the IRS, it’s to do things like this. It’s to put the service back in the Internal Revenue Service,” Boyle said. “If those efforts succeed, and in the future, perhaps near future, money is stripped away from the IRS, it’s things like Direct File that are under threat.”
U.S. Sen. Bob Casey, who had urged the federal government to make the program permanent and to expand it to Pennsylvania, said in a statement Tuesday that Free File could save Pennsylvanians $630 million in combined annual tax filing fees and additional tax credits claimed directly from the IRS.
“Thanks to this program, Americans can confidently file their taxes and keep more of their hard-earned dollars,” Casey said.
Shapiro called the program a “game changer,” and said it would be available for all Pennsylvanians in the next tax filing season.
“This is going to allow people ease of access to their government, showing that there is no wrong order, saving them hundreds, if not thousands of dollars on software and other services that maybe they really didn’t need in the first place,” he said.
Ashley Murray of States Newsroom’s D.C. bureau contributed reporting
Pennsylvania Capital-Star is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Pennsylvania Capital-Star maintains editorial independence. Contact Editor Kim Lyons for questions: info@penncapital-star.com. Follow Pennsylvania Capital-Star on Facebook and X.
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