HOUSTON — The tax filing deadline is less than a month away.
There’s a new, free software that allows you to file tax returns directly with the IRS. The direct file program is something new that could help an estimated 3.8 million Texans.
If you have a simple tax return to file—this could be for you. Tax time is hardly something Texans look forward to.
“The vast majority of people pay their taxes on time, but it costs too much money on average $270 to pay your taxes, and it takes too much time, on average 13 hours,” Wally Adeyemo, Deputy Secretary of the Treasury told KHOU 11 News.
The new tax filing software direct file is on the IRS website. It walks you through a few steps to see if you qualify first.
Direct File asks about things like your type of income, health insurance and asks for identification to prevent fraud.
Adeyemo said it’s similar to other tax preparation software you might’ve used in the past.
“One of the features I think that we think is the most important is a calculator that allows you to discover if you're eligible for tax credits, like the child tax credit,” Adeyemo adds.
These are credits that US Rep. Lloyd Doggett said can save Texans money.
“Too often the time and cost involved mean that one in five eligible Texas households don't claim some of the tax credits that they're entitled to and actually leave money on the table,” Rep. Doggett said.
The software is simple--you can only take a standard deduction on your taxable income.
Certain types of income can’t be reported, like if you received money through a payment app or online marketplace, rent, or independent contractor work.
It is a pilot program for 12 states including Texas, but the government hopes it can help many people.
“Direct file makes that process for simple tax filers free and allows them to do it in a time efficient way,” Adeyemo said.
The form is available in both English and Spanish. If you’re in need of other free tax assistance, volunteers can be found at different locations across Houston.