The agency anticipates that hundreds of thousands of taxpayers, at least, will join the pilot, which will be available to individuals but not to businesses.
"At first, the Direct File pilot will only be open to a small group of taxpayers," the agency says on its Direct File page. "(We) will open the Direct File pilot to more people later in the filing season to file their 2023 tax returns."
Initially, the pilot was available to eligible taxpayers in these states: Arizona, California, Florida, Massachusetts, Nevada, New Hampshire, New York, South Dakota, Tennessee, Texas, Washington state, and Wyoming.
What are the new income tax brackets?
Income tax brackets jumped by 7% for 2023. Income tax is progressive: the more you earn, the more you pay as a percentage of your earnings. Each bracket represents a range of incomes subject to a particular income tax rate. Tax brackets rose again in 2024.
For the top individual tax bracket, the 2024 income threshold was raised from $578,126 to $609,351. This means that more than $30,000 in individual income will be taxed at 35% instead of 37%.
Here are the other 2024 tax brackets for individual filers:
35% for incomes over $243,725.
32% for incomes over $191,950.
24% for incomes over $100,525.
22% for incomes over $47,150.
12% for incomes over $11,600.
10% for income below $11,600.
And here are the 2024 tax brackets for married couples filing joint returns:
37% for income greater than $731,200.
35% for incomes over $487,450.
32% for incomes over $383,900.
24% for incomes over $201,050.
22% for incomes over $94,300.
12% for incomes over $23,200.
10% for income below $23,200.
What is the new standard deduction?
The standard deduction for 2023 was $13,850 for individuals and $27,700 for married couples filing jointly. For 2024, it increased to $14,600 for individuals, $29,200 for married couples filing jointly.
What is the standard deduction for seniors?
People over 65 qualify for an additional standard deduction. For 2023, it’s $1,850 if you are single or filing as a head of household, and $1,500 for married taxpayers. For 2024, the figures rise to $1,950 and $1,550, respectively.
The 2023 child tax credit is worth up to $2,000 per qualifying dependent under age 17, according to NerdWallet. The income limit remains the same in 2024. The credit decreases if your modified adjusted gross income exceeds $200,000, or $400,000 for a married couple filing jointly.
What’s the difference between filing as single or head of household?
In a month or less, in most cases. The IRS says it issues most refunds within 21 calendar days. Paper returns, however, can take four weeks or more. Allow for time for the refund check to reach your bank account or mailbox.
