Are you ready to say goodbye to the stressful tax filing days? That dream could become a reality! The Internal Revenue Service (IRS) announced this week that it will be testing out its free tax prep software by 2024.
This is great news for those dumbfound and intimidated by doing their taxes on their own and those who need help to afford complicated software or need access to an accountant.
Consider what this means and how this new platform could benefit taxpayers in the coming years.
Overview of the IRS launching its tax preparation software in 2024
The Internal Revenue Service (IRS) recently announced that it is working towards launching its free tax preparation software in 2024.
The new software, the Free File Program, will be offered to taxpayers who meet certain criteria such as income and age range.
This move marks a significant shift from the current model where private companies offer tax filing services for a fee.
The IRS hopes this initiative will encourage more taxpayers to take advantage of available deductions and credits, resulting in a higher compliance rate.
Additionally, the Free File Program could save taxpayers a significant amount of money as those with incomes below $72,000 currently pay an average of $153 for tax filing services.
Benefits of using the IRS’s free online system for filing taxes
The IRS will introduce its free online tax filing system in 2024. This exciting development will provide taxpayers a convenient, low-cost way to file taxes.
With the IRS’s new system, taxpayers can file their federal and state returns electronically for free without hiring a professional or purchasing software.
Taxpayers can access various benefits using the IRS’s free online filing system. These include:
- A streamlined filing process that makes it easier for taxpayers to quickly and accurately submit their returns.
- The ability to securely store tax information in the cloud so taxpayers don’t have to keep paper copies of their returns and other important documents.
- Guidance and support from the IRS, which can help taxpayers understand filing requirements and navigate the US tax system more easily.
- A comprehensive list of deductions and credits taxpayers may be eligible for, so they can maximize their refunds or reduce their taxes owed.
Advantages and disadvantages of using the IRS's free tax filing software
In 2024, the Internal Revenue Service (IRS) will begin testing its free tax filing software as part of the Free File Program. This move could have advantages and disadvantages for taxpayers.
One potential advantage is that taxpayers can access more accurate information from the IRS using their software. Taxpayers who use other online tax preparation services often receive incorrect information, and the IRS software could help to eliminate this issue.
Additionally, it will be easier for taxpayers to communicate with the IRS when using their software, making it easier for them to get assistance filing their taxes.
On the other hand, some potential disadvantages are associated with the IRS's free tax filing software. For one, if taxpayers have to use the IRS software, they may no longer be able to access the same features and services that other online tax preparation programs offer.
Also, since the IRS is a government agency, there could be privacy concerns for taxpayers using its software.
Tips on how to get prepared for the launch of the new tax filing service
As the IRS prepares to launch its own free online tax preparation software in 2024, there are a few steps you can take now to get ready:
1. Get familiar with filing taxes online:
The IRS will use technology to make it easier for people to file their taxes without going through an accountant or third-party service provider. Getting familiar with filing taxes online is important to make the most of it when the service launches.
2. Keep track of your tax information:
One way to be prepared for the new IRS tax software is by keeping track of all your tax-related information, such as income, deductions, and credits throughout the year. This way, you can easily input the data into the new software when it launches.
3. Consider other filing options:
Although the IRS will launch its free online tax preparation software in 2024, other options are still available for those who want to file taxes with an accountant or third-party service provider. Researching and comparing these options is important to make the best decision for your needs.
4. Stay up-to-date on changes:
The IRS will continue to provide updates about the new tax filing service as it approaches its launch date. Keep an eye out for any changes or announcements that may affect how you can file your taxes in the future.
By taking these steps now, you can prepare for the IRS’s free online tax preparation software launch in 2024 and be ready to make the most of it.
FAQs
1. What is the IRS's free tax prep software?
The IRS' free tax preparation software, Free File Fillable Forms, will be available to eligible taxpayers in January 2024.
This software allows you to complete and file your federal tax return for free using an online form-based system—similar to completing a paper 1040 form.
It does not provide guidance or suggest which forms are right for your situation, so you should familiarize yourself with the tax code before using this software.
2. Who is eligible to use Free File Fillable Forms?
To be eligible to use Free File Fillable Forms in 2024, taxpayers must have an adjusted gross income of $72,000 or less for that year. This free tax prep software is available to individuals, regardless of age or filing status.
3. What are the key features of Free File Fillable Forms?
This free tax preparation software allows you to complete and file your federal 1040 form online without instructional guidance. It also allows you to import last year’s return using IRS Data Retrieval Tool and e-file and direct deposit your tax refund.
Conclusion
I hope this article has given you an overview of the IRS’s upcoming plans to offer free tax prep software in 2024. This is an exciting step forward for taxpayers, who can look forward to a more streamlined and simpler filing process come tax season.
While details are still scarce, it is clear that the IRS intends to make sure its software meets the highest standards regarding accuracy and safety.
We’ll update you as more information is released about the IRS's tax filing software!
