Platform offers eligible taxpayers a new option to file electronically for free
Phoenix – The Arizona Department of Revenue (ADOR) is announcing that the much-anticipated Direct File tool — and Arizona’s integrated state filing tool, FileYourStateTaxes — will be officially available for all eligible taxpayers to file their tax returns electronically for free starting March 12. This historic new program will allow eligible taxpayers to file their federal and state returns seamlessly and for free.
Starting this week, the platform is in its final testing phase, allowing new users to file their returns 24 hours a day, every day. A message at the top of directfile.irs.gov will indicate that Direct File is open. During this testing phase, access may close for brief periods if capacity has been reached.
Please note: those taxpayers who received the Arizona Families Tax Rebate in 2023 will not be eligible to use Direct File this year, as the tool will not support the 1099-MISC required to report the income on federal returns. The IRS has determined that the rebate is subject to federal income tax and must be reported on a federal return.
Arizona is one of a small handful of states participating in the pilot of the IRS Direct File program, which gives taxpayers an option to e-file their federal tax returns directly for the first time in US history.
With this pilot program, eligible taxpayers will begin by filing their federal return at directfile.irs.gov. Once they have finished their federal return using Direct File, they will be given an option to seamlessly e-file their state tax return through FileYourStateTaxes. Eligibility to participate in the Direct File pilot will be restricted to filers reporting only certain common types of income and claiming limited credits and deductions.
The Arizona filing software was built by Code for America, a civic tech nonprofit that works with community leaders and governments to build equitable, accessible digital tools and services.
While the IRS Direct File program is for federal returns only, Arizona chose to join the pilot program, providing a service that integrates state tax filing with IRS Direct File, a major step in creating a seamless federal-state system.
It is likely you will be eligible to use both tools if:
* You lived in Arizona for all of 2023 and do not have income from another state.
* Your only income sources are wages, Social Security benefits, unemployment benefits, and/or up to $1,500 of interest.
* You want to claim the Earned Income Tax Credit, Child Tax Credit, or Credit for Other Dependents.
* You do NOT have self-employment income, including gig or contract work income.
* You did NOT receive the Arizona Families Tax Rebate in 2023.
* You do NOT want to claim the Premium Tax Credit, the Child and Dependent Care Credit, or the American Opportunity Tax Credit or other educational credits.
Additional details on eligibility to use Direct File are available from the IRS here.
Arizona is one of only four states offering state filing integrated with Direct File in 2024. Other participating states include New York–which is also partnering with Code for America—along with Massachusetts and California. By working with the IRS, these first states will help set the foundation for an effortless federal-state Direct File system with the goal that it be scaled across the nation in the coming years.
For more information, visit directfile.irs.gov or fileyourstatetaxes.org.
