Michael Swayze's Community Resources

Category: Community Resources

  • Direct File: Offers free federal income tax filing

    Millions of tax filers will be able to file electronically, easily and safely, their federal income tax returns directly to the Internal Revenue Service for free, beginning Monday, January 27.

    The Direct File pilot program rolled out to taxpayers in 12 states in 2023. For the upcoming season it will be available to 32 million residents as a permanent program in 25 states, including New Jersey and Pennsylvania. It is available as an option, if you live in any of the following states: Alaska, Arizona, California, Connecticut, Florida, Idaho, Illinois, Kansas, Maine, Maryland, Massachusetts, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Oregon, Pennsylvania, South Dakota, Tennessee, Texas, Washington state, Wisconsin, and Wyoming.

    Go to directfile.irs.gov then click the box that reads, “Check eligibility now” to see if Direct File suits your needs. If you are not eligible you can connect with alternative filing options, particularly Free File. See https://panjcommunityresources.info/earned-income-tax-credit/.

    There are limitations to the new Direct File program, based on an IRS strategy of implementing new features after vigorous testing.
    1) It does not enable filing with itemizing deductions but is available to those who claim the standard deduction.
    2) There are only 25 states where the program is available, although the agency expects more states to join. (Illinois joined the program in January, 2025.)
    3) Direct File is programmed to accept only certain types of income and household income within a defined income range.
    4) A limited number of tax credits are currently incorporated into Direct File.
    5) You live and only worked in a participating state.

    Earlier this month, 141 Members of Congress sent a letter to Trump nominees in support of the expansion of the Direct File program, maintaining it would save taxpayers $11 Billion. The signers included the following area representatives: Senate: Cory Booker, Andy Kim; House: Donald Norcross (NJ-1), Frank Pallone (NJ-6), Bonnie Watson Coleman (NJ-12), Dwight Evans (PA-3), Madeleine Dean (PA-4), Mary Gay Scanlon (P-5), Chrissy Houlahan (PA-6), Summer Lee (PA-12), and Chris Deluzio (PA-17). For a full list of signers see text of letter.

    Twenty-nine House Republicans, including Mike Kelly (PA-16), issued a press release in December recommending termination of the program.

    The program was part of the 2022 Inflation Reduction Act, signed by President Biden. Don t let Washington lobbyists get their way again and make you pay $100, $200, or more to some big corporation for the privilege of sending your tax form to the IRS. Providing a way to file directly via Direct File is long overdue.

    For contact information of New Jersey and Pennsylvania representatives, see https://panjcommunityresources.info/nj-pa-congressional-delegations/.

    • Help With Tax Preparation

      The Earned Income Tax Credit -EITC – is perhaps the best safety net program I’ve ever known. Actually, it is part of the tax code. Nonetheless, I have written about it in nine of the past twelve years in this blog. This year I’ll try to keep it simple.

      Millions of taxpayers don’t get an EITC credit for a number of reasons. They don’t know about it, they are perhaps paying income tax for the first time, or because tax preparation is way too complicated or expensive.

      There is free tax software, if you read the fine print. Remember, the devil is in the details. Here are a couple tax assistance programs and how to access them. The first is Free File, a partnership between tax software companies and the IRS. This is the fine print you will read on the Free File website:

      IRS Free File lets you prepare and file your federal income tax online for free. File at an IRS partner site with the IRS Free File Program or use Free File Fillable Forms. It’s safe, easy and no cost to you for a federal return. 

      To receive a free federal tax return, you must select an IRS Free File provider from the Browse All Offers page or your Online Lookup Tool results. Once you click your desired IRS Free File provider, you will leave the IRS.gov website and land on the IRS Free File provider’s website. Then, you must create an account at the IRS Free File provider’s website accessed via Irs.gov to prepare and file your return.  Please note that an account created at the same provider’s commercial tax preparation website does NOT work with IRS Free File: you MUST access the provider’s Free File site as instructed above.

      The other is MyFreeTaxes. United Way provides MyFreeTaxes in partnership with the IRS’s Volunteer Income Tax Assistance (VITA) program.

      Local, county, and state government need to do more to spread the word. A number of organizations provide outreach tool kits to enable effective outreach campaigns. Let’s reach those who need the help the most. Participate on EITC Awareness Day, the last Friday in January.

      There is a conspiracy that prevents tax filing from being easy. K Street lobbyist prevent IRS from sending out partially-prepared tax forms to each taxpayer. Do a web search: “lobbyist oppose free IRS tax software”. Write your Members of Congress to ask why.

      My Earned Income Tax Credit page has been updated for the 2021 tax season to include up-to-date EITC income-eligibility guidelines plus links to programs mentioned above.

    • 2021 New Jersey Utility Assistance Summit

      About two weeks ago a group of New Jersey utility companies, working with state officials and nonprofits, held an online forum for the purpose of “connecting community partners with payment assistance programs.”

      For those community partners who were unable to attend and for others, the organizers have released the official Utility Assistance Summit presentation. Click here to download the PDF file. It is a useful tool for other energy advocates, County Welfare Agencies, nonprofits, local government officials, and of course energy consumers in New Jersey.

      Remarks were given by Lt. Governor Sheila Oliver and Joseph Fiordaliso, President of the New Jersey Board of Public Utilities. Presentations were given by the Department of Community Affairs, Division of Aging Services, Board of Public Utilities, Affordable Housing Alliance, and New Jersey SHARES.

      The downloadable presentation provides detailed information on many vital energy assistance and senior programs, covering the following programs:

      • Low-Income Home Energy Assistance Program (LIHEAP)
      • Low-Income Household Water Assistance Program (LIHWAP)
      • Universal Service Fund (USF)
      • Fresh Start
      • Winter Termination Program
      • PAGE
      • Communications Lifeline
      • Local New Jersey water programs
      • NJSave
      • Lifeline Utility Assistance Program
      • Pharmaceutical Assistance to the Aged and Disabled (PAAD)
      • Senior Gold Prescription Discount Program
      • Hearing Aid Assistance to the Aged and Disabled (HAAAD)
      • NJ Hearing Aid Project
      • SLMB and SLMB QI-1

      For addditional information on the senior programs, see the Division of Aging Services Program Guide. See blog posts dated October 5, and October 21 for related articles. Links to the programs mentioned at the Utility Assistance Summit can be found in the NJ Energy Programs page and the Public Benefits Corner of the NJ Community Resources page, all here on this website.