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

(Shutterstock Photo/RomanR)

By Jessica Swarner

January 28, 2025

An estimated 1.7 million Arizonans will be eligible to use the IRS Direct File program to file their taxes this year, compared to 690,000 last year.

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

Last year, Arizona was one of 12 states to use the new program, which was made possible by the Inflation Reduction Act signed in 2022.

This year, the program is available in 25 states and has been expanded to include more types of income, deductions, and credits.

An estimated 1.7 million Arizonans will be eligible to use Direct File this year, compared to 690,000 last year.

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

lived in Arizona for all of last year
earned all of their income in Arizona in 2024
plans to use the same filing status for both your federal and state tax returns
isn’t using the filing status “Married Filing Separately”
did not receive the Arizona Families Tax Rebate in 2024

The program may not be a good option for people planning to claim less common credits and deductions.

Arizonans 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.

Arizonans 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.

Author

Jessica Swarner

Jessica Swarner is the community editor for The Copper Courier. She is an ASU alumna and previously worked at KTAR News 92.3 FM in Phoenix. Send all story tips to [email protected] and sign up for her newsletter here.

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CATEGORIES: MONEY AND JOBS

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