Many Illinois residents will be able to use the IRS Direct File service to electronically prepare and file their 2024 federal tax returns for free.
Almost 2 million eligible Illinois taxpayers will be able to use Direct File starting Jan. 27. Gov. J.B. Pritzker said this service will, “put money typically spent on tax preparation services back into the pockets of hardworking families across Illinois.”
After users file their federal taxes, Direct File will connect user to MyTax Illinois, Illinois’ free state income tax filing system where they can file their Illinois state returns. The program is accessible on mobile phones, laptops, tablets or desktop computers and users will have access to help through a chatbot in both English and Spanish.
“We understand that a significant amount of time and money is spent every year to ensure personal income tax returns are filed accurately and on time,” said Illinois Department of Revenue Director David Harris. “This integration will help relieve stress and financial burden for taxpayers.”
The IRS created Direct File as a result of the Inflation Reduction Act, which was signed in 2022 by President Joe Biden. It began as a test program in 2024 and will become permanent in 25 states this year. The IRS estimates that over 30 million taxpayers will be eligible for Direct File in 2025.
To check eligibility and to use the service, visit https://www.irs.gov/filing/irs-direct-file-for-free. Individuals may not qualify if they:
- Have unreported cash income, such as tips or alimony.
- Have income from sources such as gig work that’s reported on other tax forms.
- Have added or used money from a Medical Savings Account.
- Have taken distributions from employer-sponsored retirement plans, like a 401(k), pension, annuity, 403(b), or governmental 457(b).
- Have made contributions to or taken distributions from an IRA.
- Exceed $200,000 in wages (or $168,600 if they had more than one employer).
- File as Married Filing Jointly, and their spouse’s wages exceed $200,000 (or $168,600 if the spouse had more than one employer).
- File as Married Filing Jointly, and have combined wages exceeding $250,000.
- File as Married Filing Separately, and wages exceed $125,000.
- Claim additional tax credits for college tuition or other higher education expenses, energy efficient home updates or adoption expenses.
- Take itemized deductions.
Mobile driver’s licenses and state ID’s
Illinois Secretary of State Alexi Giannoulias says he hopes to bring mobile driver’s licenses and state IDs to iPhones by the end of the year.
Giannoulias announced Monday that his office has officially started working with Apple to allow users to access their driver’s licenses and state IDs digitally on their iPhone or Apple Watch. He said in a news release he expects to expand these features in the future for additional digital wallets, such as Google Wallet for Android users.
Lawmakers passed House Bill 4592 last spring, allowing the secretary of state to issue mobile IDs and driver’s licenses. When it rolls out, Illinois will be the 11th state to adopt mobile IDs.
But a mobile driver’s license and ID would not replace physical cards.
The cards would be issued “in addition to, and not instead of” a physical ID, under the law. The law allows agencies and private entities to choose if they want to accept electronic IDs in place of physical ones, but “upon request by law enforcement, a credential holder must provide the credential holder’s physical credential.”
The secretary of state’s office has a sign-up page for Illinois residents to receive updates about the program, including when mobile IDs become available for iPhone users.
The move toward digital IDs is part of Giannoulias’ “commitment to modernizing the office,” according to his office.
Capitol News Illinois is a nonprofit, nonpartisan news service that distributes state government coverage to hundreds of news outlets statewide. It is funded primarily by the Illinois Press Foundation and the Robert R. McCormick Foundation.
