Ticker: IRS launches Direct File; Inflation up again in February
Massachusetts residents, along with those in 11 other states, now have access to Direct File, an electronic system for filing returns directly to the IRS.
Direct File is available for taxpayers who have very simple W-2s and claim a standard deduction. It can be used to file federal income taxes.
“This is a milestone,” said IRS Commissioner Daniel Werfel during a Tuesday press conference to announce the availability of the program.
“Direct File marks the first time you can electronically file a tax return directly with the IRS,” Werfel said. “And you can’t beat the price — its free.”
Direct File is available for taxpayers in Massachusetts, along with Florida, New Hampshire, Nevada, South Dakota, Tennessee, Texas, Washington, Wyoming, Arizona, California.
Inflation up again in February
Consumer prices in the United States picked up last month, a sign that inflation remains a persistent challenge for the Federal Reserve.
Prices rose 0.4% from January to February, higher than the previous month’s figure of 0.3%, the Labor Department said Tuesday. Compared with a year earlier, consumer prices rose 3.2% last month, above January’s 3.1% annual pace.
Excluding volatile food and energy prices, so-called “core” prices also climbed 0.4% from January to February, matching the previous month’s rise and a faster pace than is consistent with the Fed’s 2% inflation target. Core inflation is watched especially closely because it typically provides a better read of where inflation is likely headed.
“It’s a disappointment, but not a disaster,” said Eric Winograd, U.S. economist at asset manager AB. “The underlying details are more encouraging than the top-line number, which was boosted by a few volatile categories — the type of prices that tend not to repeat month-to-month.”