The Arizona Department of Revenue (ADOR) and Code for America announced on Tuesday a landmark partnership giving eligible Arizona individual taxpayers a new way to e-file their taxes for free in 2024. Arizona is one of a small handful of states participating in the pilot of the IRS Direct File program, which gives taxpayers an option to e-file their federal tax returns directly for the first time in U.S. history.
While the IRS Direct File program is for federal returns only, Arizona has chosen to join the pilot program, by providing a service that integrates state tax filing with IRS Direct File, a major step in creating a seamless federal-state system.
The Arizona filing software is being built by Code for America, a civic tech nonprofit that works with community leaders and governments to build equitable, accessible digital tools and services. Eligible Arizona taxpayers will be able to use this platform for the 2024 tax season.
“At the Arizona Department of Revenue, we are continuously seeking out ways to make filing taxes simpler, easier, and more seamless,” said Arizona Department of Revenue Director Rob Woods. “We believe that by joining the IRS Direct File Pilot program, we will bring a valuable and welcome service to Arizona’s taxpayers. For those who qualify, this will be a helpful option to file in the coming tax season.”
“Code for America will work shoulder-to-shoulder with Arizona to create a free and easy way for Direct File users in the Grand Canyon State to file their state taxes,” said Amanda Renteria, CEO of Code for America. “This will put Arizona on the leading edge of tax filing in America. Solving state filing is central to the IRS’s Direct File pilot, and Code for America is thrilled to work with our partners to demonstrate a way forward. Together, we are building a cohesive and seamless system for tax filers and helping Arizonans access the refunds they are owed.”
With this pilot program, once eligible taxpayers have finished their federal returns using Direct File, they can opt to e-file their state tax return through the platform developed by Code for America and ADOR. Eligibility to participate in the Direct File pilot will be limited to filers reporting only certain types of income and claiming limited credits and deductions.
Arizona is one of only four states joining this innovative effort. Other participating states include New York–which is also partnering with Code for America—along with Massachusetts and California. By working with the IRS, these first states will help set the foundation for a seamless federal-state Direct File system with the goal that it be scaled across the nation in the coming years.
For more information, visit Code for America’s information page.