Federal-State Tax Return Filing for Eligible Taxpayers
Integration for Effortless Federal-State Tax Return Filing
According to Dcourier, The Arizona Department of Revenue (ADOR) started the Direct File tool and FileYourStateTaxes on March 12. This initiative is part of the IRS Direct File pilot allowing eligible taxpayers to e-file federal-state tax return filing for free. Arizona is one of the states in this IRS program enabling direct e-filing of federal-state tax return filing. Developed by Code for America Arizona’s federal-state tax return filing software integrates state tax filing with the IRS Direct File creating a smooth federal-state system.
READ ALSO: Senator Wyden’s Proposal To Safeguard SNAP Cards From Cyber Threats – Protecting Families’ Food Security!
Exclusion for Arizona Families Tax Rebate Recipients
However, those who received the Arizona Families Tax Rebate in 2023 can’t use Direct File this year. The tool doesn’t support the necessary 1099-MISC for reporting income on federal returns. The IRS requires reporting the rebate as a federal-state tax return filing on a federal return. Eligibility for the Direct File pilot is limited to specific income types and claims for certain credits and deductions. Arizona, along with New York, Massachusetts, and California, leads in this integrated state filing initiative, aiming for a nationwide implementation of an easy federal-state Direct File system in the future.