New E-Filing System Offered to Eligible Arizonans for Free

The era of e-filing taxes is about to receive a significant upgrade in the Grand Canyon State, thanks to a groundbreaking partnership between the Arizona Department of Revenue (ADOR) and Code for America.

In a move aimed at streamlining the tax-filing process for Arizonans, the two entities announced today that qualified individual taxpayers in Arizona will have the option to e-file their taxes for free in the 2024 tax season. This initiative is part of the IRS Direct File pilot program, which aims to provide taxpayers with an option to e-file their federal tax returns directly for the first time.

Although the IRS Direct File program is predominantly for federal returns, Arizona has proactively integrated its state tax filing system with the pilot. This integration marks a significant move toward establishing a cohesive federal-state system.

The software that will make this streamlined process possible is being developed by Code for America, a recognized civic tech nonprofit focused on enhancing digital accessibility and equity. Their collaboration with ADOR ensures that come 2024, eligible Arizonans will have a more efficient and seamless tax-filing experience.

Rob Woods, Arizona Department of Revenue Director, highlighted the state's ongoing commitment to ease the tax-filing process for its residents, stating, "By partnering with the IRS Direct File Pilot program, we hope to offer a valuable service that will make the upcoming tax season smoother for those who qualify."

On the same note, Amanda Renteria, CEO of Code for America, commented on the collaboration's potential benefits. "Our goal with Arizona is to provide Direct File users with a hassle-free method to file their state taxes. This effort will not only place Arizona at the forefront of tax filing in the country but also exemplify a cohesive and seamless system for tax filers."

Upon completing their federal returns through the Direct File, eligible taxpayers can choose to e-file their state tax return via the platform engineered jointly by Code for America and ADOR. However, the pilot's eligibility will cater to those reporting specific income types and claiming a limited range of credits and deductions. (Learn more here)

Arizona joins a select group of only three other states – New York, Massachusetts, and California – in pioneering this initiative. These trailblazing states, by partnering with the IRS, aim to lay the groundwork for a unified federal-state Direct File system that could potentially be adopted nationwide in the subsequent years.

For those interested in learning more about this initiative, further details can be found on Code for America's official information page.