Prepare for the 2024 tax season: IRS unveils free e-filing service for taxpayers

Good morning. It’s Tuesday, Jan. 30. Here’s what you need to know to start your day.

• The IRS is (finally) offering it’s own free filing software
• Residents of historically Black Leimert Park are tired of being asked to sell their homes.
• Culver City is now a destination for the comforts of pie.
• And here’s today’s e-newspaper

We’re talking tax filing. Bear with us.

Unfortunately, tax season is upon us once again, and every American with a job will file a return to the Internal Revenue Service, just like every year.

Some of you are patiently waiting for the moment employers send out W-2 forms. But I know others are content to file for an extension and finish this business as late as possible. Maybe even mid-November. But just a heads-up, tax returns are once again due on April 15.

But one thing is changing this year.

The Internal Revenue Service is finally entering the electronic tax filing game, offering taxpayers a new, free and somewhat easier way to file taxes. The L.A. Times’ Jon Healey further explains what this program means for California taxpayers.

Filing taxes for free hasn’t always been easy

Taxpayers whose adjusted gross income was $79,000 or less in 2023 are legally eligible to file for free. Nearly 70% of Californians fall under that limit, and online help is available for preparing and filing their federal returns.

But only a small percentage take advantage of these services, Healey reported.

State and local officials attribute the lack of participation to tax-preparation companies Intuit (maker of TurboTax) and H&R Block and have sued both for tricking taxpayers who are eligible to file for free into paying. These companies also lobbied for decades to prevent the IRS from creating its own online tax filing software, which would threaten the industry’s profits.

The IRS’ new Direct File tool cuts out a middleman

The IRS’ new tool, Direct File, provides many low- and moderate-income households a free online service for preparing and filing their taxes directly with the agency.

This software is the first from the agency that will guide users through the tax filing process step by step. A real-time chat feature will also be available, in which an IRS customer service representative provides answers to basic questions.

There are still a few setbacks:

• For now, it will be available only in California, Arizona, Nevada and nine other states.
• Availability for the program begins mid-March, less than a month before tax returns are due.
• Eligibility for using the program is limited, based on how individuals earn income. For example, those who earn income from a business they own, subcontracting work or gig-economy jobs cannot file.
• Taxpayers using Direct File can claim only a limited list of credits and deductions, including the Earned Income Tax Credit for low-income workers, the credits for children and other dependents, and the standard deduction.

Even with the government “simplifying” the submission of tax returns, it can still be a headache.

Californians cannot use Direct File for state taxes, but California has its own site

California is not one of the handful of states that allows information entered through Direct File to apply to your state tax forms automatically. Instead, the state Franchise Tax Board provides CalFile, offering qualified taxpayers a free online service to file their state tax returns.

CalFile has restrictions similar to Direct File, so if you qualify for Direct File, it’s highly likely that you’ll also have access to CalFile.

Taxpayers eager to use the Direct File program can sign up on the IRS website to receive an alert when the program becomes available.

Read more: Did you pay H&R Block for tax help? You may be getting a refund.

Today’s top stories

(Brian van der Brug/Los Angeles Times)

Gentrification and housing

• In historically Black Leimert Park, some residents are upset with constant phone calls and mailers asking them to sell their home.
• Black-trimmed homes, tiny libraries and other signs your neighborhood is about to be gentrified.

Extreme rainfall

• A storm expected to hit California this week will bring significant rainfall, which could cause flooding on the state’s northernmost and southernmost coasts.
• SoCal sees two ‘thousand-year’ storms within weeks. More could be coming.

Bodies found in the desert

• Arrests have been made after 6 bodies were found shot to death in a remote San Bernardino County desert.
• Mystery shrouds the case. Could it have been gang-motivated?

Kids and schools

• To protect kids, California might require chronological feeds on social media.
• In an unusual turn, an overcrowded LAUSD campus has parents livid that they could be turned away.

Rebecca Grossman trial

• Tearful mom describes horror as socialite sped through intersection, killing her 2 sons.
• Lawyers said the police didn’t check the other car in the crash.

More big stories

• An underground fire burns deep within Chiquita Canyon Landfill. Air regulators are raising alarms over the possible spread of toxic vapors.
• New Chargers coach Jim Harbaugh ‘was a little starstruck’ upon meeting Justin Herbert.
• Boeing Max 9s start flying again, but critics question safety after door panel blowout.
• Vice president Kamala Harris brings abortion rights tour to California as Democrats fight for House control.
  

Get unlimited access to the Los Angeles Times. Subscribe here.

Commentary and opinions

• Michael Hiltzik: At age 60, ‘Dr. Strangelove’ feels more relevant than ever.
• Mary McNamara: Why youth sports drive parents crazy and 10 more lessons from a mom who’s been through it.
• Jackie Calmes: Biden’s got a good-news deficit. What will turn it around?
• Jonah Goldberg: Trump’s rants about NATO are making the U.S. weaker.
• Editorial Board: Yes on Proposition 1, a modest step forward on mental health care.

Today’s great reads

(Ramona Rosales / For The Times)

‘Native women are unstoppable’: Lily Gladstone’s plan to expand Indigenous inclusion. Lily Gladstone is the first Native American to earn an Oscar nomination for lead actress. Now that she has kicked the door down, she plans on holding it open.

Other great reads

• Lionel Richie, Prince and a grumpy Bob Dylan: The untold story behind ‘We Are the World.’
• How American soccer players found a path to Europe, via Orange County SC.
• Howdy Glenn, one of L.A.’s unsung Black country singers, finally gets his due from the Grammys.
• A Deep-sea exploration company thinks it has found Amelia Earhart’s plane.

How can we make this newsletter more useful? Send comments to essentialcalifornia@latimes.com.

For your downtime

(Bill Addison / Los Angeles Times)

Going out

• 🥧 Culver City is now a destination for the comforts of pie.
• 📺 The 41st PaleyFest L.A. will celebrate the 25th anniversary of ‘Family Guy,’ and the lineup includes events for ‘The Morning Show,’ ‘Loki,’ ‘Avatar: The Last Airbender’ and more.

Staying in

• 🏡Turf is out. Native grasses are in. Here are 4 lush low-water options.
• 🧑‍🍳 Here’s a recipe for green curry and yogurt-roast salmon.
• ✏️ Get our free daily crossword puzzle, sudoku, word search and arcade games.

And finally ... a great photo

Show us your favorite place in California! Send us photos you have taken of spots in California that are special — natural or human-made — and tell us why they’re important to you.

(Amy Brewster)

Today’s great photo is from Amy Brewster of Salinas: Anza-Borrego state park. Brewster writes: Borrego Springs is a small town surrounded by the largest state park in California: Anza-Borrego state park.

Have a great day, from the Essential California team

Anthony De Leon, reporting fellow
Karim Doumar, head of newsletters

Check our top stories, topics and the latest articles on latimes.com.