IRS Direct File expands to 24 states for tax season 2025
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The IRS Direct File program can be used on computers, tablets and smartphones. Photo: Tasos Katopodis/Getty Images for Economic Security Project
Starting in tax season 2025, more taxpayers will be able to file their taxes online for free with the Internal Revenue Service's expanding Direct File program.
Why it matters: The program, which the IRS rolled out in 12 states this year, could reshape how millions of Americans pay and prepare their taxes.
- It could also disrupt the multibillion-dollar tax preparation industry.
- The average American spends $270 and 13 hours filing their taxes, the Treasury Department said.
Direct File states for 2025
Driving the news: The IRS announced that Direct File will be available to 30 million eligible taxpayers in 24 states next year, doubling the number from this year's pilot, and covering a wider range of tax situations.
- The states participating in 2025 are: 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.
By the numbers: During the 2024 filing season, more than 3 million users checked to see if they were eligible to use the site, and over 140,000 taxpayers used Direct File, surpassing the agency's goal of 100,000.
- Direct File users saved an estimated $5.6 million in tax prep fees, the Treasury Department said.
What's next: More states are expected to participate in the program in 2026, the IRS said in a news release.
How Direct File works
Zoom in: Direct File is mobile friendly, works on smartphones, tablets and computers and available in English and Spanish.
- It provides a "free, easy, and secure option for taxpayers with simple tax situations in participating states," the IRS says.
- The program "shows taxpayers the math so they can be sure that their return is accurate, and they are getting their maximum refund."
Direct File eligibility
Types of income that Direct File will support in 2025 include:
- Wage income (W-2)
- Social Security income (SSA-1099)
- Unemployment compensation (1099-G)
- Interest income (1099-INT)
- Pension and annuity income (excluding IRAs) (1099-R)
Tax credits include:
- Earned Income Tax Credit
- Child Tax Credit
- Credit for Other Dependents
- Child and Dependent Care Credit
- Premium Tax Credit
- Retirement Savings Contributions Credit (Saver's Credit)
- Credit for the Elderly and Disabled
Yes, but: You can't use Direct File if you itemize deductions, but eligible deductions include:
- Standard deduction
- Student loan interest
- Educator expenses
- Health Savings Account contributions
IRS tax extension deadline 2024
State of play: If you filed an extension on filing your income taxes, the deadline is Tuesday, Oct. 15 to avoid possible late filing penalties, the IRS says.
- There is no extension on payments from the April 15 deadline.
Between the lines: Some taxpayers affected by recent natural disasters, the terrorist attacks in Israel and military members in combat may be eligible for additional time, per the IRS.
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