The U.S. Department of the Treasury and the Internal Revenue Service (IRS) have announced that over 30 million taxpayers in 24 states will be eligible to use Direct File during the 2025 filing season. This initiative, facilitated by the Biden-Harris Administration’s Inflation Reduction Act, allows eligible Americans to file their taxes online for free directly with the IRS.
"Thanks to the Biden-Harris Administration’s Inflation Reduction Act, the IRS is able to provide more than 30 million Americans with the option to file their taxes for free in an easy way," stated Secretary of the Treasury Janet L. Yellen. She highlighted that this expansion could save Americans millions in filing fees and aligns with efforts to reduce costs for families.
Direct File will be accessible in Alaska, Arizona, California, Connecticut, Florida, Idaho, Kansas, Maine, Maryland, Massachusetts, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Oregon, Pennsylvania, South Dakota, Tennessee, Texas, Washington, Wisconsin and Wyoming. It is designed as a secure option for taxpayers with straightforward tax situations and includes no hidden fees.
In a previous pilot program conducted in 12 states during Filing Season 2024 where more than 140,000 taxpayers used Direct File successfully. Feedback was positive with over 90% rating their experience as "excellent" or "above average."
For Filing Season 2025 Direct File will cover additional types of income and credits including those relevant for parents claiming certain credits recent graduates paying student loan interest retired seniors receiving Social Security income among others.
Direct File also aims to improve customer service support based on past feedback adding features like a chat bot enhanced verification live chat available in English and Spanish and callback requests for technical support.
State eligibility estimates indicate significant numbers of potentially eligible taxpayers across various states such as California (5.62 million), Texas (4.2 million), Florida (3.22 million), and New York (3.25 million).
