The IRS is expanding its Direct File program, allowing taxpayers to file their taxes directly with the agency for free.
The program was piloted in 12 states during the 2024 tax season and will be open to more than 30 million people in 24 states in the 2025 filing season.
The big picture: New eligibility standards will allow participation by taxpayers with 1099 income and credits.
- The program will be expanded to encompass additional states in 2025, including Alaska, Connecticut, Idaho, Kansas, Maine, Maryland, New Jersey, New Mexico, North Carolina, Oregon, Pennsylvania and Wisconsin.
- It was already available in California, New York, Arizona, Florida, New Hampshire, Nevada, South Dakota, Tennessee, Texas, Washington, Wyoming and Massachusetts.
- The expansion of the program has faced opposition from commercial tax prep software firms, as well as concerns over data protection and program origins.
- The IRS was tasked with creating the “direct file” system as part of the Inflation Reduction Act signed into law by President Joe Biden in 2022.
