The U.S. Department of the Treasury and Internal Revenue Service (IRS) announced today that Pennsylvania will join IRS Direct File for Filing Season 2025. This initiative, enabled by President Biden’s Inflation Reduction Act, aims to improve customer service across various platforms to ensure taxpayers claim all eligible benefits and deductions.
Following a successful pilot program in 12 states, which saw 140,000 taxpayers claim over $90 million in refunds and save approximately $5.6 million in filing fees using the free online tool, Treasury and the IRS have decided to make Direct File permanent and available to all states. Pennsylvania joins Oregon and New Jersey as the latest state to offer this service, with at least 1.5 million Pennsylvanians expected to be eligible next filing season.
“Thanks to President Biden’s Inflation Reduction Act, more than 1.5 million Pennsylvanians will be able to file their taxes online for free, directly with the IRS in Filing Season 2025,” said U.S. Secretary of the Treasury Janet L. Yellen. “Direct File will save Pennsylvania taxpayers time and money and help ensure they receive the tax benefits for which they are eligible.”
Governor Josh Shapiro added, “Filing your taxes should be free and easy – that’s why we’re improving our digital services and adopting IRS Direct File here in Pennsylvania.” He emphasized that this initiative would allow residents to file both state and federal taxes at no cost on an accessible platform.
Senator Bob Casey noted, “The numbers don’t lie: Direct File is a game-changing, commonsense program that enables Americans to do their taxes easily, securely, and affordably.” He highlighted his efforts to expand Direct File to Pennsylvania as a means of reducing costs for families.
Representative Brendan Boyle expressed pride in seeing IRS Direct File come into effect after years of advocacy for easier tax filing processes. Representative Mary Gay Scanlon also celebrated this development as a significant win for Pennsylvania taxpayers.
The Treasury Department aims to further expand Direct File's reach nationwide in the coming years as part of its broader strategy under the Biden-Harris Administration’s efforts to deliver modern customer service using resources from the Inflation Reduction Act.
BACKGROUND ON THE DIRECT FILE PILOT PROGRAM
The average American spends $270 and 13 hours filing their taxes annually. The Inflation Reduction Act mandated a study on an IRS-run Direct e-File System that would allow free tax filing directly with the IRS. The subsequent pilot program during Filing Season 2024 exceeded expectations with high user satisfaction rates reported through surveys.
Taxpayers who used Direct File appreciated its straightforward nature, absence of hidden fees or upselling attempts, and confidence provided by direct interaction with the IRS.
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