IRS Expands Free Direct File Program to 24 States

The IRS is expanding its Direct File program to 24 states for the 2025 tax filing season, potentially allowing over 30 million taxpayers to file their taxes for free without using third-party providers. This expansion includes 12 new states: Alaska, Connecticut, Idaho, Kansas, Maine, Maryland, New Jersey, New Mexico, North Carolina, Oregon, Pennsylvania, and Wisconsin. The program will also cover a broader range of tax situations, including various credits and deductions not available during the pilot phase, which only supported simple tax returns. In the pilot phase, over 140,000 taxpayers utilized Direct File, with 90% rating their experience positively. Treasury Secretary Janet Yellen stated that this initiative could save Americans millions in filing fees and aims to enhance the tax filing experience. The IRS plans to further broaden the program in the coming years to accommodate more complex tax situations.