The online system, aimed at low- and moderate-income taxpayers, offers more help than the IRS' Free File program. It has launched in California and 11 other states in a trial run.
If you're a California resident and haven't done your federal tax return for 2023, you now have another, more user-friendly option online: the free Direct File service from the IRS. It's not for everyone, however. Instead, it's aimed mainly at people with very simple annual tax returns, which the Treasury Department said amounts to about 1 of every 3 taxpayers.
If you're able to claim other credits and deductions, such as those for foreign taxes paid, child care or retirement savings, or if you cut your tax bill by itemizing deductions , Direct File would not be a good choice for you. One other caution: The IRS says Direct File will be available only until April 15, when most Californians' 2023 returns are due.
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