Californians now have access to a more user-friendly online federal tax return service, the IRS’ free Direct File program. Unlike other free tax-preparation services that come with income limits and certain restrictions, Direct File offers a direct, step-by-step guide with no middlemen for taxpayers using basic forms. Direct File only supports a limited range of credits and deductions, making it unsuitable for self-employed individuals, business owners, and those with more complex financial situations. Although it doesn’t offer tax advice, Direct File provides technical support, and its entries can be saved online to pause and resume later. The federal and state tax credits available can amount to substantial refunds for qualifying individuals, particularly in low-income families.

Source: Los Angeles Times March 06, 2024 07:28 UTC