PHILADELPHIA (Reuters) – Pennsylvania will join the Internal Revenue Service’s free direct filing system for simple tax returns next year, providing the option to as many as 1.5 million taxpayers in the state, U.S. Treasury Secretary Janet Yellen and Pennsylvania Governor Josh Shapiro announced on Tuesday.
The move follows a successful pilot program during the 2024 tax filing season in 12 states after which the IRS announced that it would offer a permanent free filing system, funded in part by $60 billion in new modernization funding for the IRS over a decade – funding that Republicans have vowed to rescind.
Yellen said the pilot program attracted filings from 140,000 taxpayers – exceeding the 100,000 goal – who claimed more than $90 million in refunds and saved an estimated $5.6 million in fees that would have been charged by private tax preparers.
The event in Philadelphia offered Yellen an opportunity to tout the Biden-Harris administration’s tax plans and IRS investments with Shapiro, a leading contender for Democratic presidential candidate Kamala Harris’ vice presidential pick.
“Filing your taxes should be free and easy – that’s why we’re improving our digital services and adopting IRS Direct File here in Pennsylvania,” Shapiro said in a statement. “Thanks to the Biden-Harris administration’s Direct File initiative, Pennsylvanians will be able to save money by filing both their state and federal taxes at no cost on an easy-to-use platform.”
Shapiro survived the first cut of Harris’ shortlist, as North Carolina Governor Roy Cooper and Michigan Governor Gretchen Whitmer dropped out of that selection process.
The Pennsylvania governor and former state attorney general is competing against Kentucky Governor Andy Beshear, U.S. Senator Mark Kelly of Arizona, Minnesota Governor Tim Walz, and Secretary of Transportation Pete Buttigieg.
In the past year, Yellen has held events with Beshear, Kelly, Cooper and Whitmer touting Biden-Harris economic policies, from clean energy tax credits to investments in semiconductors.
(Reporting by David Lawder; Editing by Andrea Ricci)
Comments