Earlier this month, the IRS and the Department of Treasury announced that Direct File will be expanded so more than 30 million taxpayers in 24 states will be eligible in the 2025 tax season.  

The announcement comes after Direct File launched earlier this year with a pilot program that began with 12 states and more than 140,000 taxpayers successfully completing their taxes. For participating states and for those who quality, Direct File allows taxpayers to file their taxes quickly, easily, and free of charge. 

“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,” said Secretary of the Treasury Janet L. Yellen. “By doubling the number of participating states and expanding eligibility, Direct File has the potential to save Americans tens of millions of dollars in filing fees in the upcoming filing season, advancing the Biden-Harris Administration’s goal of reducing costs for American families. As Filing Season approaches, taxpayers in the 24 participating states should check their eligibility for this free and easy tool to see if it’s the right option for them.” 

According to the IRS, the average American spends $270 and 13 hours filing their taxes. Proponents say millions of Americans will now be able to file for free, without needing to file through costly third parties such as tax preparation services. 

Beginning in 2025, Direct File will be available 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.  

The IRS says those qualifying for filing will include “common tax situations” such as: 

• A parent with W-2 income that claims the Earned Income Tax Credit and Child Tax Credit. 

• A recent graduate with W-2 income, who pays student loan interest. 

• A retired senior citizen with Social Security income. 

“For Filing Season 2025, Direct File will now also support additional income types and credits for individuals who meet other eligibility requirements, including the Credit for Other Dependents, Child and Dependent Care Credit, Premium Tax Credit, Retirement Savings Contributions Credit, as well as the deduction for Health Savings Accounts,” the agency said. “Treasury Department and the IRS’ goal in the coming years is to expand the reach and tax scope of Direct File to provide an option for working-and middle-class taxpayers nationwide.” 

Earlier this year, the Coalition on Human Needs encouraged its online activists to urge their governors to participate in IRS Direct File; nearly 42,000 respondents took action. 

For more information and to see if you qualify for Direct File, visit the Direct File tax page. And to sign up to receive the IRS Direct File newsletter and see where outreach efforts will be targeted, click here.