The U.S. Department of the Treasury and Internal Revenue Service (IRS) announced today that Maine will join IRS Direct File for Filing Season 2025. This initiative, enabled by President Biden’s Inflation Reduction Act, aims to improve customer service and ensure taxpayers claim eligible benefits and deductions.
Following a successful pilot program in 12 states where 140,000 taxpayers claimed over $90 million in refunds and saved an estimated $5.6 million in filing costs using the free online filing tool, Treasury and the IRS decided to make Direct File a permanent offering. Maine joins Oregon, New Jersey, Pennsylvania, New Mexico, Connecticut, North Carolina, and Wisconsin as part of this expansion. More than 120,000 Mainers will be eligible to use the free online filing tool next Filing Season.
“Thanks to President Biden’s Inflation Reduction Act, more than 120,000 Maine taxpayers will be able to file their taxes online for free, directly with the IRS this coming Filing Season,” said U.S. Secretary of the Treasury Janet L. Yellen. “Direct File will save Mainers time and money and help ensure they receive the tax benefits they are owed.”
Governor Janet Mills expressed her support: “Thanks to our new partnership with the Federal government, beginning next January, Maine people will have the ability to file their Federal taxes online for free... I thank President Biden and Vice President Harris for the Inflation Reduction Act, which made this exciting new service possible.”
Senator Angus King highlighted the advantages of simplifying tax filing: “When we designed the tax provisions in the Inflation Reduction Act... This is a long overdue step that will build on Maine’s already successful free state tax filing program.”
Maine residents using Direct File for their federal returns will be connected with Maine Tax Portal for state returns. By 2026, there is a goal to integrate both systems fully.
The Treasury Department plans to expand Direct File's reach nationally for working- and middle-class taxpayers. The initiative aligns with efforts by the Biden-Harris Administration to enhance customer service through resources from the Inflation Reduction Act.
BACKGROUND ON THE DIRECT FILE PILOT PROGRAM
The average American spends $270 and 13 hours filing taxes (Taxpayer Burden Survey). The Inflation Reduction Act mandated an IRS-run Direct e-File System study leading to a pilot during Filing Season 2024.
During this pilot phase in 12 states over five weeks after extensive product testing, more than 140,000 Americans successfully filed their taxes using Direct File.
A GSA Touchpoints survey revealed high satisfaction among users; 90 percent rated their experience as "Excellent" or "Above Average." Users appreciated its straightforward nature and lack of hidden fees or upselling attempts.
Taxpayers valued features that provided insights into various tax situations while expressing confidence in fixing mistakes quickly when filing directly with the IRS.
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