IRS Direct File will be permanent: Who will be able to file taxes for free in 2025?
The IRS has reported that Direct File, the free tax filing tool offered by the agency this year, will be permanent and reach more states in 2025.
This year’s tax season came with some new tools like Direct File, a federal income tax pilot program that aims to make the process of filing taxes free, easy and accessible.
This pilot provided taxpayers the option to electronically file their federal tax return directly with the Internal Revenue Service for free for the 2024 tax season.
Direct File was an option for hundreds of thousands of taxpayers in several states, including Arizona, California, Massachusetts, New York, Florida, New Hampshire, Nevada, South Dakota, Tennessee, Texas, Washington and Wyoming .
IRS Direct File will be permanent
In a statement, the IRS announced that it will make Direct File a permanent option for filing federal tax returns beginning with the 2025 tax season.
“Giving taxpayers additional options strengthens the tax filing system,” according to the IRS Commissioner Danny Werfel. “Adding Direct File to the menu of filing options fits squarely into our effort to make taxes as easy as possible for Americans, including saving time and money.”
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The IRS plans to announce additional details about the 2025 expansion in the coming months. For the 2025 filing season, the IRS will work with all states that want to partner with Direct File, and there will be no limit to the number of states that can participate next year. The agency also wants to ensure the system functions well as it is rolled out to more parts of the country.
“User experience- both within the product and integration with state tax systems- will continue to be the foundation for Direct File moving forward,” Werfel said.
“We will focus, first and foremost, on continuing to get it right. Accuracy and comprehensive tax credit uptake will be paramount concerns to ensure taxpayers file a correct return and get the refund they’re entitled to.”
Who will be able to file taxes for free in 2025?
The IRS will share exact details soon, but this year, to be eligible,taxpayers had to reside in one of the states where Direct File is available. The pilot program only covered individual federal tax returns and was only for simple returns that report only certain types of income and claim limited credits and deductions.