Have you ever wished there was a way for your clients to file their taxes for free online without going through a middleman? Excitingly, this year, the IRS is piloting a Direct File service in 12 states that is aimed at simplifying the tax filing processes and democratizing access to free filing.
The IRS Direct File Pilot program is designed to streamline tax filing for low-income taxpayers and straightforward tax situations. It allows eligible individuals to file their federal tax returns directly with the IRS for FREE, bypassing the need for third-party tax preparers. This initiative aims to reduce costs associated with tax preparation services and provide a direct route for low-income taxpayers to access tax credits, refunds, and quick support from IRS customer service representatives. Learn more at directfile.irs.gov.
Actionable Tips for Low-Income Clients
As a coach, you can educate clients about eligibility criteria and offer free options if they are ineligible for Direct File this year.
With Direct File, clients can:
- File federal income tax returns (and some state returns)
- Qualify to receive important tax credits like the Child Tax Credit (CTC), EITC, etc.
- File for yourself online with access to chat and phone support
MyFreeTaxes is another free online option developed by United Way that is available nationwide.
With MyFreeTaxes clients can:
- File federal and state income tax returns
- Qualify to receive important tax credits like the Child Tax Credit (CTC), EITC, etc.
- File for yourself online with access to chat and phone support
If clients want more one-on-one support (that’s still free):
VITA Programs
The IRS’s Volunteer Income Tax Assistance (VITA) program offers free basic tax return preparation to qualified individuals. Often located at local libraries or other community organizations, you can find a program near you, by visiting, https://irs.treasury.gov/freetaxprep/.
1-on-1 MyFreeTaxes Support
MyFreeTaxes will also pair qualified individuals with a tax preparer in-person or online. Learn more: https://myfreetaxes.com/
As financial coaches, our role goes beyond traditional financial advice to empower individuals and families from all backgrounds to achieve financial well-being. By staying informed about initiatives like the IRS Direct File Pilot and equipping clients with actionable tips and resources, you can make a meaningful impact in helping them navigate the complex tax season and work towards their financial goals.
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