You can now file your taxes directly to the IRS for free — if you live in 1 of these 12 states

• The IRS' much-anticipated free tax filing software is now online.
• Direct File is in a pilot phase and available for "simple" tax returns for 2023.
• For now, the tool is limited to taxpayers who lived in one of 12 states last year.

A small but growing number of US taxpayers can now do what their counterparts in many other countries have been able to do for years: file their annual taxes online, for free, directly with the federal government.

The much-anticipated Internal Revenue Service software — aptly named Direct File — opened as of Wednesday in a pilot phase ahead of its wider public launch in mid-March.

This year's tax filing deadline is April 15.

While it's free to sign up, there is a catch: to file using the tool, taxpayers must have been a resident of one of 12 states for all of 2023 and not have income from any other state.

The IRS says it's limiting the release and following best software development practices for building "complex services."

Here's the list of currently eligible states:

• Arizona

• California

• Florida

• Massachusetts

• Nevada

• New Hampshire

• New York

• South Dakota

• Tennessee

• Texas

• Washington

• Wyoming

The tool currently does not prepare state income tax returns, but Arizona, California, Massachusetts, and New York residents can access state-supported tools via Direct File.

Additional eligibility limits to consider

Direct File is currently designed to handle what the IRS calls "simple" returns for those with W-2 wages and a few of the most common tax credits and deductions.

Unfortunately, even taxpayers with otherwise simple returns can't use the program if they purchased their health insurance through an exchange like HealthCare.gov or used funds from a Health Savings Account.

Taxpayers with other types of income (like gig workers, independent contractors, or Taylor Swift ticket resellers) and those with more complex deductions or credits aren't allowed use the service just yet.

There are also some limitations to using the service for households with incomes of more than $125,000, while married couples with combined earnings of more than $250,000 aren't eligible.

The IRS says the software is designed to guide users smoothly through the filing process and that many early testers finished their taxes in less than 30 minutes.

IRS customer service agents are also available via live chat in both English and Spanish to answer basic questions about tax law and give technical support — again, for free.