The U.S. Department of the Treasury and Internal Revenue Service (IRS) announced that Maryland will join IRS Direct File for Filing Season 2025. This initiative, enabled by President Biden’s Inflation Reduction Act, aims to enhance customer service and ensure taxpayers claim 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 costs using the free online tool, Treasury and the IRS decided to make Direct File a permanent offering. Maryland joins other states such as Oregon, New Jersey, Pennsylvania, New Mexico, Connecticut, North Carolina, Wisconsin, and Maine in adopting this system. Over 700,000 Marylanders will be eligible to use this tool next filing season.
“Thanks to President Biden’s Inflation Reduction Act, more than 700,000 Maryland taxpayers will be able to file their taxes online for free,” said U.S. Secretary of the Treasury Janet L. Yellen. “Direct File will save Marylanders time and money and help ensure they receive the tax benefits they are owed.”
Maryland Governor Wes Moore expressed support for the initiative: “Today we take a big step forward to make tax season easier... I want to thank the Biden-Harris Administration... This program has saved Americans millions of dollars in tax filing fees.”
U.S. Senator Ben Cardin emphasized the importance of affordability: “Direct File was extremely successful in making tax filing more affordable... Implementing a permanent Direct File program in Maryland will help lift a significant tax burden.”
Senator Chris Van Hollen highlighted convenience: “Our state’s participation... will offer hundreds of thousands of Marylanders a convenient and free way to do their taxes next year.”
Congressman Steny H. Hoyer remarked on taxpayer expectations: “Americans want – and deserve – a free... option to file their taxes.” He noted his role in securing funding for Direct File through the Inflation Reduction Act.
Congressman John Sarbanes praised the program's efficiency: “The Direct File pilot program has proven its ability to ease the burden of tax season by saving taxpayers time...”
Maryland Comptroller Brooke E. Lierman added that partnering with the IRS aligns with modernization efforts: “Partnering with the IRS... is an exciting opportunity... fundamental to our core priority of modernizing our agency.”
The Treasury Department aims to expand Direct File's reach nationwide as part of broader efforts under the Biden-Harris Administration’s customer service initiatives funded by the Inflation Reduction Act.
BACKGROUND ON THE DIRECT FILE PILOT PROGRAM
The average American spends $270 and 13 hours filing taxes annually (Taxpayer Burden Survey). The Inflation Reduction Act required an IRS study on creating an IRS-run Direct e-File System for free taxpayer use. Following positive findings from this study, a pilot was initiated during Filing Season 2024.
In this pilot phase across 12 states with simple tax situations allowed access; it exceeded expectations with over 140,000 participants claiming substantial refunds while saving on preparation fees.
User feedback indicated high satisfaction levels; according to a GSA Touchpoints survey involving over 11,000 users—90 percent rated their experience as "Excellent" or "Above Average." Users appreciated straightforward usage without hidden fees or upselling attempts during filing processes directly with confidence-enhancing features provided by IRS interactions.
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