IRS Direct File is not yet available in Delaware. Why and what to know

Delaware is not yet a part of IRS Direct File Programbut the state and federal government have had discussions about “eventual” state participation.

Last month, the IRS announced 12 new states to join the Direct File program, which is a free, web-based, cross-platform system that guides taxpayers step-by-step through their tax returns. It also guides taxpayers through their state filing process.

All of Delaware’s neighbors, including Maryland, Pennsylvania and New Jersey, have joined the program by 2025. The Delaware Department of Revenue said it has discussed the First State’s possible participation in the program with the U.S. Treasury. More than 30 million taxpayers from 24 states nationwide have access to this service.

The State Department said it is seeking support similar to what other states have received to fully and seamlessly integrate the IRS system with the state’s free filing system. Most Delaware residents would be able to file both their federal and state taxes with the Direct File system, and the department said it wants to ensure residents’ ability to use a single service instead of filing separately through state systems or providers third parties. .

A tech nonprofit called Code for America is working with the U.S. Treasury to help implement Direct File, but it still doesn’t have enough resources for every state.

Without assistance from Code for America, Delaware would have to find its own financial resources to implement the program as intended. The nonprofit said it was working with New Jersey in October to allow the state to join Direct File.

One Bloomberg In the report earlier this year, Deputy Chief Revenue Officer Jamie Johnstone said the state was working to gain a better understanding of the program’s outcomes after its 2024 pilot program.

The 2025 Direct File expansion will also cover taxpayers claiming a child and dependent care credit, a premium tax credit, an elderly and disabled credit, and retirement savings contribution credits. It will also cover taxpayers claiming deductions for health savings accounts.

The state offers free filing of Delaware personal income tax returns and is free and unlimited for all Delaware taxpayers, the state department said.