The IRS launches a tool to file free taxes in 12 states: who qualifies and how to access. In 2023, American individual taxpayers spent an average of $150 to prepare and file returns, according to the IRS.

The Direct File pilot program begins with a limited group of taxpayers with relatively simple returns. The pilot program will begin with limited types of income, credits and deductions, IRS officials said. Although only some taxpayers can use Direct File, the bilingual software includes live chat support with IRS staff.