Free electronic filing through the combination of IRS Direct File and Direct File Oregon opens today when both the IRS and Oregon Department of Revenue begin processing e-filed 2024 federal and state income tax returns.
Paper-filed return processing will begin in mid-February.
The IRS estimates that 640,000 Oregon resident taxpayers preparing their own returns this year will have the option to electronically file both the federal and state income tax returns by filing directly with the IRS and the state. Taxpayers are encouraged to use IRS Eligibility Checker to see if they qualify.
E-filed returns will be processed in the order they are received. However, as in years past, the department won't be issuing personal income tax refunds until after February 15th. A refund hold is part of the department's tax fraud prevention efforts and allows for confirmation that the amounts claimed on tax returns match what employers and payers report on Forms W-2 and 1099.
E-filing is the fastest way for a taxpayer to get their refund. On average, taxpayers who e-file their returns and request their refund via direct deposit receive their refund two weeks sooner that those who file paper returns and request paper refund checks.
In addition to IRS Direct File and Direct File Oregon, other free filing options will also open today. Free guided tax preparation is available from several companies for taxpayers who meet income requirements. Free fillable forms are available for all income levels.
