out for W twos?

Because it is now that time of year again.

But this tax season will be a little different for the first time ever.

Some Illinois residents will be able to file their federal taxes for free with the IRS is IFI tax returns system direct file.

The tool aims to cut tax prep costs and make filing easier.

Here to tell us more, our Jacob Golden, a tax law professor at the University of Chicago and via Zoom, Richard Kaplan, a law professor at the University of Illinois, Urbana Champaign.

Thank you to you both for joining us.

Illinois, we know is joining 24 other states that are already offering this free tool.

Tax season starts today.

Professor Caplan, what does this mean for the millions of Illinois residents are filing federal taxes this year?

>> For the vast majority of Illinois taxpayers, they will be eligible to access this program called Direct File, which will not only be free but might actually improve face with the Illinois program so they don't have to enter some of the same information a second time.

>> So that'll be helpful when filing both your Illinois and your federal taxes, the IRS direct file program.

It started last year with just 12 states as a pilot.

Jacob old and what's the difference?

Our what different about the program this year?

Yeah.

Well, this year is kind of taking us into the 21st Century of Tax Administration for the first time.

So you mentioned watching out for those who use.

>> And like, you know, like making sure when you're doing your taxes, they haven't missed a former type something Enron.

That's the time when the stressful part of this but this is the first time in the U.S. now you can be able to start, able to use this new program, direct file.

If are able to do it, you're going to be able to start your tax return using some of the information the IRS already has about you.

So you'll be able to import your W twos.

Some of the information from last year's tax return and hopefully it should tax filing into a less painful process.

>> People also have a variety of different tax situation.

Some can be very complex.

Richard Kaplan, who would most benefit from using this tool?

>> that already of people aboard But there are limits, for example, if income a married couple of more than a quarter million dollars, then they are not eligible if they have a lot of investment income, can get capital gains.

They are not eligible if they would be itemizing their deductions, mortgage interest or charitable contributions, then they are not alone.

But the vast majority of people have fairly straight forward returns have wages, Social Security income are not itemizing their deductions and those kinds of returns will be eligible for direct file.

And with quick click of a button, there will be directed to the Illinois program called My Tax or and that will creep populate meaning many of the numbers will carry over.

>> We know the IRS partners with some services that allow people to file for free if they need the income requirements.

Jacob, what makes IRS direct file different?

>> Well, I direct file is some of those problems that already exist.

The U.S. for the filing partner with commercial tax preparation companies the free File program, which you could still use instills in existence.

One of the big differences, though, is you know, with free college, all these different companies and the eligibility rules to use each one very so you have to worry.

Do you really meet requirements for the company are using you?

Might people sometimes get worried?

They're being up sold for a product, you know, with direct file.

You know, the information is going straight to the IRS and again, for the first time this year, they're gonna IRS will try to incorporate the information that they already have about you into the return.

So at list this year might be an easier process through direct file.

>> know, as we mentioned the program, it was piloted last year, got some high ratings from some users.

The IRS said General Services Administration Touch points survey of more than 11,000 direct file users found that 90% of respondents ranked their experience with direct file as, quote, excellent or above average.

But it has gotten some criticism from Republicans who are concerned that the program is costly.

And, you know, sort likened it to a FOX guarding the henhouse kind of situation.

Richard, what's what's your response to that argument that the Republicans are concerned that IRS is not trusted by all.

Taxpayers.

>> Well, that's certainly true that it's part of the America East not writes the tax authority.

There's also a more philosophical objection, mainly that the private sector is providing this service and in the case of 10 companies that are doing it for free if people's incomes under 84,000.

And so the idea is that is the government appropriating and opportunity here that the private sector is already doing.

Very private sector program is already So it's not as if this is cheaper than that.

Other people, however, feel comfortable having the IRS yet the information directly and don't have that same objection.

But there's no doubt that private sector is lobbying against this.

Not because they see the absence of all a lot of returns.

But is sort of a camel and camel's nose in the tent.

when the program is starting small with very simple returns.

But hasn't been proven as it develops.

It may expand many more returns.

And that's really what worried about.

>> Jacob, we've got about 30 seconds left.

You know, could this be, you know, potential competition for some of those private tax prep companies like TurboTax and H R Block which can charge a decent amount of money to taxes electronically.

Well, that's one of the benefits for our taxpayers.

Hopefully down the road is people with very simple returns.

They can get these benefits for free.

Get the credit without some of the money going to prepares that if you don't use it, you don't have to.

You don't have to