Over 6K Arizonans Direct File Program to file taxes

Phoenix, AZ – The 2024 tax season gave Arizona taxpayers a new way to file their returns through the Direct File pilot program, with an overwhelmingly positive response. The Arizona Department of Revenue is sharing details on the success of the IRS Direct File and FileYourStateTaxes Program that allowed eligible taxpayers to file their returns electronically for free; and Arizonans are showing their enthusiastic support for how well it worked this year, and their optimism for its future potential. 

“The ability for Arizona taxpayers to file federal and state returns easily and seamlessly – for free – is a significant benefit to those we serve,” said Arizona Department of Revenue Director Robert Woods. “With the success of the first year of the Direct File pilot, it is our goal to expand this program to more taxpayers over time. Anything that makes filing taxes easier and more accessible to more people is a win for Arizona.”

The Arizona Department of Revenue partnered with Code for America–a civic tech nonprofit that works with community leaders and governments to build equitable, accessible digital tools and services–who built the Arizona filing tool. 

Eligibility to use the platform was limited in scope this year to ensure that it would be a positive experience for taxpayers. In this first pilot year, over 6,000 Arizona taxpayers successfully filed both their federal and state tax returns, saving them time and money. 

Those who completed both the IRS Direct File and FileYourStateTaxes return, were given the opportunity to take a brief survey to share their feedback on their experience. 

Highlights of the results of the pilot program were:

  • 9 out of 10 Arizona taxpayers who filed their federal return through Direct File, went on to file their Arizona state taxes.
  • In our follow-up survey, 97% of taxpayers were “satisfied” or “very satisfied” with FileYourStateTaxes. 
  • One of the most unique aspects of Direct File integrated state filing, is that 96% of respondents thought the transfer was “seamless and quick.” 
  • Most taxpayers finished FileYourStateTaxes very quickly. From the time of data import, 91% of filers completed and submitted their state return within 15 minutes. 
  • In the survey, taxpayers told us they loved Direct File overall. Nine out of ten would recommend Direct File and FileYourStateTaxes to their friends and family.

To learn more about the results of Direct File, you can read the report at:  https://codeforamerica.org/media/direct-file-integrated-state-filing-and-fileyourstatetaxes/

Arizona was one of only a handful of states offering this free Direct File platform. Other participating states include New York–which also partnered with Code for America—along with Massachusetts and California. By working with the IRS, these first states help set the foundation for an effortless federal-state Direct File system with the goal that it be scaled across the nation in the coming years.