Currently, it's states that contributors live in because our resources are limited

Seems like one could setup an org/corp and get funding from those states to implement tax filing code.

Yeah, we have been considering setting up a nonprofit org. I'm not sure if we have the scale to justify it yet, but it's sort of an open question.

Many states already have ways to file online for free. For example, Illinois: https://www2.illinois.gov/rev/programs/mytax/Pages/il-1040.a...

Definitely true. The goal is to unify the filing so that the user doesn't have to refill in their information for separate state and federal tax application websites.

Fortunately, state tax returns (in my experience) are pretty straightforward to do by hand once the Federal return is done. I'm sure some states are more complicated than others, that might be the prioritization to use if more resources become available.