Illinoisans may be able to file federal taxes for free
Many Illinois residents will be able to use the IRS Direct File service to electronically prepare and file their 2024 federal tax returns for free.
Almost 2 million eligible Illinois taxpayers will be able to use Direct File starting Jan. 27.
Gov. JB Pritzker said this service will, “put money typically spent on tax preparation services back into the pockets of hardworking families across Illinois.”
After users file their federal taxes, Direct File will connect user to MyTax Illinois, Illinois’ free state income tax filing system where they can file their Illinois state returns. The program is accessible on mobile phones, laptops, tablets or desktop computers and users will have access to help through a chatbot in English and Spanish.
“We understand that a significant amount of time and money is spent every year to ensure personal income tax returns are filed accurately and on time,” said Illinois Department of Revenue Director David Harris. “This integration will help relieve stress and financial burden for taxpayers.”
The IRS created Direct File as a result of the Inflation Reduction Act, which was signed in 2022 by President Joe Biden. It began as a test program in 2024 and will become permanent in 25 states this year. The IRS estimates that more than 30 million taxpayers will be eligible for Direct File in 2025.
To check eligibility and to use the service, visit https://www.irs.gov/filing/irs-direct-file-for-free. Individuals may not qualify if they:
• Have unreported cash income, such as tips or alimony.
• Have income from sources such as gig work that’s reported on other tax forms.
• Have added or used money from a Medical Savings Account.
• Have taken distributions from employer-sponsored retirement plans, like a 401(k), pension, annuity, 403(b), or governmental 457(b).
• Have made contributions to or taken distributions from an IRA.
• Exceed $200,000 in wages (or $168,600 if they had more than one employer).
• File as Married Filing Jointly, and their spouse’s wages exceed $200,000 (or $168,600 if the spouse had more than one employer).
• File as Married Filing Jointly, and have combined wages exceeding $250,000.
• File as Married Filing Separately, and wages exceed $125,000.
• Claim additional tax credits for college tuition or other higher education expenses, energy efficient home updates or adoption expenses.
• Take itemized deductions.
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