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Kokua Line: Why can't Hawaii taxpayers use IRS Direct File?

Kokua Line: Why can't Hawaii taxpayers use IRS Direct File?

Yahoo14-02-2025

Question : An eligibility check on the IRS.gov website indicates that Hawaii is not one of the 25 states participating in the 'IRS Direct File ' online income tax filing program for federal returns. Why not, and is there any plan to participate in the future ?
Answer : 'The Hawai 'i Department of Taxation is planning on participating in the Internal Revenue Service Direct File program for the 2026 filing season, for tax year 2025. DOTAX was unable to currently participate because our resources and staffing were committed to a major Gen Tax system upgrade which started in August of 2023 and was funded by the state Legislature in its 2023 session. Also, the IRS timeline for implementing Direct File for the 2025 tax filing season provided DOTAX with less than a month to design and develop the state's portion. We believe that rushing this critical step would jeopardize the success of Direct File and would require us to limit the number of taxpayers that could participate in the program due to strict eligibility criteria. However, we are engaged in constructive discussions with the IRS to have DOTAX participate in Direct File for the 2026 filing season, for tax year 2025, contingent on the provision of necessary resources for design and implementation currently being requested in our (state ) budget, ' Gary H. Yamashiroya, a DOTAX spokesperson, said in an email.
Following up on the funding question, he responded that 'our budget request asks for six new permanent positions and $294, 796 in fiscal year 2026, and seven permanent positions and $664, 592 in fiscal year 2027, in general funds to establish a Tax System Modernization Office and integrate systems with the IRS Direct File program.'
You are one of several readers asking about IRS Direct File, , the free, online tax preparation system now available in 25 states, after a successful pilot program in 2024 ; there's no limit on the number of states that can participate. Built in-house by the IRS, Direct File guides the user through their federal tax return, like commercial tax-preparation software. It can import some information directly from the IRS and offers live staff support on weekdays. Direct File can be used on a smartphone, tablet or computer.
Although Direct File doesn't handle state returns, once the user submits a U.S. return, the system guides the filer to its state portal so they can prepare their state return without a fee, according to the IRS website.
Readers asked about Direct File in 2024, too, after the IRS invited all states to participate after the limited pilot project was deemed successful and Direct File was made permanent. The DOTAX spokesperson said then, in late June, that the department was assessing what it would take to properly integrate Direct File with 'Hawaii's unique tax code and software system.' Hawaii has a no-fee online portal for filing state income taxes, via.
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Q : Regarding the license plate shortage, can we still get PVS plates for a new car ?
A : Yes. 'Specialty license plates that provide monetary support to the Polynesian Voyaging Society, Haleakala National Park and Hawai 'i Volcanoes National Park ' are available, according to Honolulu's Department of Customer Services. Read more at.
Mahalo Many thanks to the fellow who assisted at Sam's Club in town when I could not reach the shelf. Sometimes it's the little things that make it hard to 'age in place.' Also, this man's help allowed me to stay within my monthly food budget by buying in bulk. Sometimes the food items are too heavy for me to lift, or too low or too high for me to reach. I appreciate the help.—A reader------------Write to Kokua Line at Honolulu Star-Advertiser, 500 Ala Moana Blvd., Suite 2-200, Honolulu, HI 96813 ; call 808-529-4773 ; or email.------------

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