Next spring, 30 million Americans can file taxes directly with the IRS for free.

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TL;DR:

  • Direct File expands to 24 states for the 2025 tax season.
  • Service now covers more tax situations like 1099s, retirement income, and additional credits.
  • 30 million taxpayers eligible for Direct File.
  • New features include a chatbot and live chat in English and Spanish.
  • Direct File now available on mobile phones, laptops, and desktops.
  • IRS aims to improve the filing experience, with a focus on working families.
  • Additional states may join in 2025, with more planned for 2026.
  • IRS committed to strengthening all free filing options, including Free File and VITA.
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Sources: IRS

The IRS’s expansion of Direct File is a game-changer for millions of taxpayers. Not only does it double the number of states involved, but it also broadens its scope to cover a wider array of tax situations. With 30 million taxpayers now eligible, this service could streamline the tax process for many who have been burdened by complicated filing systems. The addition of new features like live chat and a chatbot ensures that filing taxes won’t feel like a daunting task, especially for those navigating tax season for the first time. As the IRS continues to improve accessibility, the future of tax filing is looking far more user-friendly and efficient.

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