It seemed like the initial Direct File rollout was limited to states that didn't have a state-level income tax, or directly cooperated with the IRS. Are they forcing all states to play ball, or will Direct File not cover state tax submissions?
"will be made permanent for the 2025 tax season with all 50 states and Washington D.C. invited to participate"
It seems very much that this is an opt-in thing, state by state. I would suspect that the results of this will be most Democratic-leaning states at least trying to opt-in for next year, and many Republican-leaning states refusing loudly during this election year, then quietly starting to opt in in a few years.
Looks like exactly half and half, Democratic/Republican to me ...
But, who knows maybe next year ...
https://taxfoundation.org/data/all/state/state-income-tax-ra...
They were in the pilot because the organization I worked for, Code for America, offered to build them one: https://codeforamerica.org/programs/tax-benefits/state-tax-f...
We reached out to other states as well, but those were the two that ended up being most impactful + most cooperative + easiest to implement :)
> The Direct File pilot doesn't prepare state returns. However, if you live in Arizona, California, Massachusetts or New York, the Direct File pilot guides you to a state-supported tool you can use to prepare and file your state tax return.
> If you live in Washington state, Direct File guides you to a state site where you can apply for the Working Families Tax Credit when you file your federal return with the Direct File pilot.