Rep. Chu Highlights Launch of IRS Direct File Pilot Program

5.2 million eligible taxpayers in California could benefit from free, secure, easy filing option

WASHINGTON, D.C. — Rep. Judy Chu (CA-28), a Member of the House Ways and Means Committee, released the following statement after the Internal Revenue Service (IRS) launched the Direct File pilot program today:

“When Ways and Means Democrats and I drafted the Inflation Reduction Act, we envisioned a tax system that was fairer, held ultra-wealthy tax cheats accountable, and improved services for everyday taxpayers. With the Biden-Harris Administration’s strong partnership, this legislation is delivering for taxpayers and the launch of the Direct File pilot program for taxpayers in California and 11 other states builds on our progress. I urge all eligible Californians to explore if Direct File is right for them so they can take advantage of the program’s free, simple, and secure way to file their taxes this filing season.”

Based on estimates, Direct File is now open to more than 18 million eligible taxpayers in 12 states, including California. Examples of taxpayers who may be eligible to use Direct File this filing season include:

• A parent with W-2 income that claims the Earned Income Tax Credit and Child Tax Credit.
• A recent graduate with W-2 income, who pays student loan interest.
• A retired senior citizen with Social Security income.

According to a recent Economic Security Project report, the Direct File program over five years would save the average user $160 in filing fees and hours of their time each year, which saves Americans a total of $11 billion annually between filing fees and time costs. By making it easier for taxpayers to file, Direct File would also deliver up to $12 billion each year in additional tax credits to low-income families currently missing out, including the Earned Income Tax Credit (EITC) and the Child Tax Credit (CTC).