The Internal Revenue Service (IRS) has released a new pilot, Direct File, to allow people to file their taxes directly and virtually with the IRS at no cost. This pilot only supports simple tax needs, including the Earned Income Tax Credit.

Qualifications for Direct File

At this time, the pilot has certain limitations as to who can file directly with the IRS. Individuals must meet the following qualifications:

• Be filing in one of 12 states (AZ, CA, FL, MA, NV, NH, NY, SD, TN, TX, WA, WY)

• Have a certain form of ID

  • A Social Security number (SSN) or Individual Taxpayer Identification Number (ITIN) for yourself and any spouse or dependents you claim

  • If applicable, an Adoption Taxpayer Identification Number (ATIN) for dependents you claim

  • A current driver’s license, state identification, passport, or passport card

• Have a certain type of income

  • Income from an employer (Form W-2)

  • Unemployment compensation (Form 1099-G)

  • Social Security benefits (Form SSA-1099)

  • $1500 or less in interest income or US savings bonds or Treasury obligations (Form 1099-INT, boxes 1 and 3)

To learn more about Direct File and see if you qualify, visit directfile.irs.gov.

Earned Income Tax Credit (EITC) for Homeless + Foster Youth

This is the third year Qualified Homeless and Qualified Former Foster Youth are eligible for the Earned Income Tax Credit. At least 20% of eligible people for the EITC don’t claim this benefit each year – likely because they are unaware they qualify.

• Qualified homeless youth are individuals who certify that they are unaccompanied youth who are or are at risk of homelessness, and are self-supporting.

• Qualified former foster youth are individuals who, between the ages of 14 and 17, were in foster care and provided consent for the entity or entities who administered the foster care program to disclose information related to their status as a former foster youth.