Gov. Shapiro joins Treasury head Yellen to announce IRS Direct File will launch in Pennsylvania

PHILADELPHIA (KYW Newsradio) — Pennsylvania has joined the growing list of states where taxpayers will be able to get free help filing their returns with the IRS through a federal program called Direct File.

Treasury Secretary Janet Yellen came to Philadelphia personally on Tuesday to make the announcement and was joined by Gov. Josh Shapiro, stoking more speculation about his prospects as a vice presidential candidate.

The Direct File program allows taxpayers earning under $200,000 a year ($250,000 for married couples) to file directly with the IRS, without the need for a private, for-profit tax prep services.

“It saves taxpayers money up front,” Yellen said. “They do not have to pay to prepare or file their returns and it saves money on the back end by helping them get their refunds and tax credits they deserve.”

Her announcement comes a week after Treasury officials announced New Jersey would also join the program, which was piloted in 12 states last year. According to the IRS, more than 140,000 people used the program during the pilot phase, with many of them reporting filing times of about 30 minutes .

“It makes the whole process easier and more efficient,” said Yellen, who added that pilot users saved $5.6 million in fees and collected $90 million in refunds.

There are restrictions on who can use the program. In addition to income limits, users must have a simple W-2 or 1099 form for Social Security or unemployment income. People who earn money from tips, gig work, property rental and online payment apps are ineligible for the program.

Gov. Shapiro heaped praise on the Biden-Harris administration for creating the program, calling it a “game-changer,” and for other investments in the commonwealth, highlighting the replacement of lead water service lines and wiring that will connect 276,000 Pennsylvania homes without Wi-Fi to the internet.

“The investments in these infrastructure projects are having a positive impact on people’s lives every single day,” said Shapiro.

Shapiro emerged as a contender to be Vice President Kamala Harris’ running mate shortly after she became the presumptive nominee but he has consistently declined to discuss the matter. However, he’s already become an important campaign surrogate in this crucial swing state.

At the Direct File announcement, the governor said the program shows that the Biden-Harris administration shared his own priorities of a more efficient, responsive government. “Anyone who’s interacted with government knows it can be a frustrating process,” he said. “[Direct File] is going to allow people ease of access to their government.”