Some South Dakotans May Be Getting Free Tax Prep from the IRS

No matter how simple or how complicated our taxes are each year, we typically incur some sort of expense to get all of that information compiled and then filed with the government.

During the most recent tax season, filers spent an average of $250 and spent 13 hours preparing their taxes.

But some South Dakotans might be eligible for some free tax preparation, thanks to the very agency that collects our tax info.

Get our free mobile app

The Mount Rushmore State is one of 13 states that will help test the Internal Revenue Service’s (IRS) first-ever Direct File pilot program for the 2024 filing season.

The service will allow filers with relatively simple returns to submit their taxes free. An invitation from the IRS is required to take part.

Taxpayers in four states (Arizona, California, Massachusetts, New York) were originally targeted for the new program which was later expanded to include South Dakota and the eight other states that have no state income taxes (Alaska, Florida, New Hampshire, Nevada, Tennessee, Texas, Wyoming, Washington).

The IRS says the free prep service will initially only work with returns for taxpayers with income from W-2 wages, Social Security or jobless benefits, and interest income under $1,500.

The agency also anticipates working with the following filing options:

• Income reporting
• W-2 wage income
• Social Security and railroad retirement income
• Unemployment compensation
• Interest of $1,500 or less
• Credits
• Earned Income Tax Credit
• Child Tax Credit
• Credit for Other Dependents
• Deductions
• Standard deduction
• Student loan interest
• Educator expenses

Direct File will be a mobile-friendly, interview-based service that will work on mobile phones, laptops, tablets, and desktop computers.

At the end of the 2024 filing season, the IRS will publicly share the results of the program.