You may qualify to file your taxes for free in Pennsylvania—here’s how

An estimated 2.1 million Pennsylvanians will be eligible to use the IRS Direct File program to file their taxes this year. 

Pa. residents have some good news this tax season—the state is participating in the Internal Revenue Service’s (IRS) Direct File Program, which allows qualified residents to file their taxes for free.

The new program was made possible by the Inflation Reduction Act signed in 2022. This year, it will be available in 25 states and has been expanded to include more types of income, deductions, and credits. 

An estimated 2.1 million people in Pa. will be eligible to use Direct File this year. 

The Direct File Program may be a good option if a person:

• Lived in Pennsylvania for all of 2024
• Earned all of your income in Pennsylvania in 2024
• Will not file Pennsylvania Schedule OC—Other Credits

The program may not be a good option if any of the following situations apply to you:

• You have local wages, local tips, or local income tax for multiple localities on the same Form W-2 (Boxes 18-20)

Residents can use Direct File if they are reporting income using these forms: W-2, 1099-G, SSA-1099, 1099-SA, and 1099-INT, as well as income from an Alaska Permanent Fund Dividend. 

Direct File isn’t available for people who have unreported cash income or are using other forms to report income, like a 1099-NEC for independent work. It also only works with people taking the standard deduction, not itemized deductions. 

Anyone interested in using the program can check their eligibility here.

Pennsylvanians who have an Adjusted Gross Income of $84,000 or less may also qualify to use the IRS Free File program, which directs people to “trusted” third-party softwares that offer free federal, and sometimes state, returns. 

To learn more about filing requirements in Pa., click here. You’ll be directed to the state’s free filing tool, MyPATH, to complete your state tax return once you submit your federal tax return.