“One of the main criticisms of the program is that it the direct file pilot only covers individual federal tax returns and does not prepare state returns. However, IRS officials said they are working with Arizona, California, Massachusetts and New York for filing season 2024 to integrate state taxes into the pilot.
Organizations like Code for America are working with the states to create their own state filing programs to be integrated in to the direct file tool.
Gabriel Zucker, associate policy director for tax benefits at Code for America, said his non-profit is working with Arizona’s Department of Revenue and New York’s Department of Taxation and Finance to create a state filing tool.
The states are ‘really blazing the trail for this exciting project and finding a way for state filing to work within the context of this,’ Zucker said. ‘This is a team that’s committed to doing government technology right.’”