More than 30 million taxpayers in 24 participating states will be eligible for Direct File in the 2025 tax filing season, according to the U.S. Department of the Treasury and Internal Revenue Service (IRS).
Through Direct File, eligible Americans are able to file their taxes online for free, directly with the IRS, saving potentially hundreds of dollars and hours of time considering that the average person spends $270 and 13 hours filing their taxes, the Treasury Department said Oct. 3.
“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,” U.S. Treasury Secretary Janet Yellen said. “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.”
For the upcoming tax filing season, 62 percent of Americans live in states that will offer Direct File, which 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.
Direct File has no hidden fees, is available in Spanish, and works as well on a smartphone as it does on a tablet or computer. Direct File shows taxpayers the math so they can be sure that their return is accurate, and they are getting their maximum refund, according to the IRS.
Treasury and the IRS have also secured commitments from additional states to join Direct File in the 2026 filing season as part of their work to progressively expand the tool’s reach.
At the same time, Direct File will now cover additional types of income, credits, and deductions with an estimated more than 30 million taxpayers eligible to use Direct File across the 24 participating states.
For example, as it did in the 2024 filing season, Direct File will support common tax situations, including 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; and a retired senior citizen with Social Security income.
For the 2025 filing season, Direct File also will now 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 Treasury Department said the 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.