IRS Expands Free Direct File Program to 24 States for 2025
The IRS will allow over 30 million taxpayers to file federal taxes for free, expanding eligibility and features in its Direct File system.
- The Direct File program will now be available in 24 states, doubling the number from the previous year.
- More than 30 million taxpayers are expected to benefit from the expanded program in the 2025 tax season.
- New features include support for additional income types and tax credits, such as retirement income and the child and dependent care credit.
- The IRS reports that Direct File could save taxpayers tens of millions of dollars in tax preparation fees.
- The program will continue to exclude taxpayers who itemize deductions, focusing on those with simpler tax situations.