Pinal Today

Individual taxpayers who report retirement income using Form 1099-R can now utilize Direct File for both federal and Arizona state taxes. This expansion includes various types of income, deductions, and credits supported by the platform. Form 1099-R is specifically used to report distributions from retirement benefits like pensions, annuities, or other retirement plans.

Arizona is among 25 states collaborating with the IRS to provide taxpayers the option to file their taxes directly with the IRS and Arizona Department of Revenue online at no cost. Approximately 1.7 million Arizona taxpayers qualify to use this tool.

Direct File offers a mobile-friendly experience available in both English and Spanish. Taxpayers begin by filing their federal return through the IRS’s tool at directfile.irs.gov, which guides them with interview-style questions similar to other tax preparation software. Once the federal return is completed, taxpayers can seamlessly proceed to the FileYourStateTaxes tool to prepare their state return, with much of the information automatically populated from their federal return.

"Direct File may be a good option if you lived in Arizona for all of 2024," stated a representative. It is also suitable for those who earned all income in Arizona during that year, plan to use the same filing status for both federal and state returns, and are not using "Married Filing Separately."

This service does not replace existing tax filing services but offers an alternative for eligible taxpayers based on their individual circumstances.

For further details on Direct File, individuals are encouraged to visit the IRS's Direct File page.