The US Internal Revenue Service (IRS) has rolled out a groundbreaking new service: a free online tax filing system available in both English and Spanish. This initiative, known as Direct File, is currently being piloted in 12 states, offering a streamlined alternative to traditional tax filing methods.
Who Can Use Direct File?
The pilot programme is limited to taxpayers with relatively simple returns, including those who:
- Report wages, Social Security income, or unemployment benefits
- Claim standard deductions
- Qualify for credits like the Earned Income Tax Credit (EITC) or Child Tax Credit
More complex filings involving itemised deductions, business income, or cryptocurrency transactions still require professional software or assistance.
Why This Matters
This move represents a significant shift in US tax policy, addressing long-standing criticisms about the complexity and cost of tax filing. With an estimated 21 million Spanish speakers in the US, the bilingual option could dramatically improve accessibility.
The programme comes after years of debate about whether the IRS should provide free filing options, with opponents arguing it would compete unfairly with private tax preparation companies.
What's Next?
If successful, the pilot could expand nationwide in future tax seasons. The IRS is particularly interested in feedback from Spanish-speaking users to improve the service.
Taxpayers in participating states can access Direct File through the official IRS website during the current filing season.
