WASHINGTON, D.C. — The Internal Revenue Service (IRS) has announced a significant expansion of its Direct File service for the 2025 tax filing season, doubling its availability to 24 states and broadening its scope to accommodate a wider array of tax situations. This expansion marks a pivotal enhancement in the IRS’s efforts to streamline the tax filing process and improve accessibility for taxpayers across the United States.
With the upcoming tax season, the Direct File service will be accessible to eligible taxpayers in 12 additional states beyond the pilot program’s scope. These new states include Alaska, Connecticut, Idaho, Kansas, Maine, Maryland, New Jersey, New Mexico, North Carolina, Oregon, Pennsylvania, and Wisconsin. This increase allows over 30 million taxpayers to utilize the free e-filing service, a substantial growth from the previous year.
The IRS has also extended Direct File’s capabilities to support more complex tax situations. For the 2025 filing season, taxpayers can now file 1099 forms for interest income above $1,500, retirement income, and the Alaska Permanent Fund dividend. Additional credits and deductions, such as the Child and Dependent Care Credit and Health Savings Account deductions, are now included, addressing various tax scenarios that affect working families.
IRS Commissioner Danny Werfel emphasized, “We’re excited about the improvements to Direct File and the millions more taxpayers who will be eligible to use the service this year.” The IRS aims to make tax filing more efficient and user-friendly, improving the process for all filers.
Enhancements to the service include a new chat bot to assist users with eligibility checks and ongoing support through live chat available in both English and Spanish. The service’s integration with state tax systems ensures a seamless filing experience, guiding taxpayers through their federal and state returns efficiently.
Following the successful pilot during the 2024 tax season, the IRS conducted a thorough review, resulting in Direct File’s establishment as a permanent fixture in the tax filing landscape. The move responds to widespread demand for cost-free electronic filing options, confirmed through feedback from taxpayers, congressional members, and numerous organizations nationwide.
Direct File’s evolution is part of a broader strategy to provide taxpayers with diverse filing options, complementing traditional methods such as tax professionals and commercial software. The service’s expansion is expected to enhance the overall effectiveness of the U.S. tax system and further the IRS’s commitment to providing accessible, reliable, and efficient tax filing solutions.
The IRS’s continued collaboration with partners like Free File, Inc., and initiatives like the Volunteer Income Tax Assistance program, ensure that a comprehensive suite of free filing options remains available to the public. As the IRS prepares for the 2025 tax season, the Direct File service stands ready to accept returns upon the season’s official opening, reinforcing the agency’s mission to meet taxpayers’ needs dynamically and responsively.
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