Press Release
32M Americans Eligible to Use Free IRS Tax Filing Service Starting Jan. 27
01. 27. 2025
Coalition for Free and Fair Filing celebrates year two of the tool, now with expanded eligibility and new pre-populated data features.
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WASHINGTON – Starting today, over 32 million taxpayers across 25 U.S. states will be able to use IRS Direct File, a free, easy-to-use digital tax filing service that allows taxpayers to file directly with the IRS.
Now in its sophomore year, Direct File will reach more than twice as many states than in 2024 and cover a wider range of tax situations, as well as offer advanced new functionality to pre-populate some taxpayer data, taking a huge step toward turning tax filing into a nearly-automatic experience.
“Filing taxes does not need to be so taxing. With IRS Direct File, millions of Americans will safely file federal and state returns online for free. Those who have already tried the tool love it, and this year it covers more states and more tax situations. Making taxes easier is good government at work,” said Adam Ruben, Vice President of Campaigns and Political Strategy at Economic Security Project.
The overwhelming majority of users during the 2024 pilot season reported a positive experience, with 90% of users rating their experience “excellent” or “above average.” The Treasury Department estimates that, all together, users saved $5.6 million in tax preparation fees.
“Taxpayers shouldn’t have to pay exorbitant fees to predatory for-profit companies just to file their taxes,” said Lindsay Owens, Executive Director of Groundwork Action. “Direct File has already proven enormously popular, putting money back into the pockets of working families. We’re excited that millions more Americans will be able to file their taxes for free this tax season – proof that investing in the IRS pays off for taxpayers.”
In addition to expanding eligibility, this year Direct File will also pre-populate some of taxpayers’ personal and wage information, saving Americans both time and money and removing barriers to filing.
“Direct File offers proof of what’s possible when we use technology to make government work well for everyone. After a successful pilot year, it’s exciting to see this program expand so that tax filing will be easier and more accessible for even more people in 2025,” said Amanda Renteria, CEO of Code for America. “This program epitomizes the spirit of starting small and iterating. A trial that began in a handful of states is now a robust tool available to more than 30 million households. What’s most encouraging is that more families with lower incomes will have easy access to benefits like the Earned Income Tax Credit and the Child Tax Credit. Code for America is pleased to support Direct File users via our state integration tool, FileYourStateTaxes, and will continue to celebrate this massive leap toward greater efficiency in tax filing.”
“Direct File is a true game changer for eligible filers in half the states in the country,” said Susan Harley, managing director of Public Citizen’s Congress Watch division. “Taking away the hassle and expense of tax filing is enormously beneficial for the American people and a breath of fresh air since corporate middlemen should not be standing as gatekeepers for people just doing their civic duty of paying taxes.”
Research shows that when the program is made fully available in all 50 states and for a wider range of tax situations, IRS Direct File could save taxpayers $11 billion annually in cost and time savings. Direct File would also meaningfully close the long-standing refundable credits coverage gap by making sure that households can claim up to $12 billion annually in tax credits like the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC) that are too often left on the table because people didn’t file their taxes.
Direct File is available to taxpayers in the following states in 2025: Alaska, Arizona, California, Connecticut, Florida, Idaho, Illinois, 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.
If you are interested in speaking further about Direct File with a member of the Coalition For Free And Fair Filing, please contact Jenna Severson at [email protected], Manisha Sunil at [email protected], or Colleen Roache at [email protected].
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The Coalition for Free and Fair Filing supports the Internal Revenue Service’s efforts to create a free online direct tax filing tool. The group’s mission is to ensure all U.S. taxpayers can easily file tax returns and get the tax credits they deserve by safeguarding and expanding the IRS Direct File program. The coalition is composed of organizations committed to racial and economic justice, consumer protection, the advancement of civic technology and the promotion of equity in tax administration.