5 things taxpayers need to know about the new IRS Direct File program going nationwide in 2025
- Direct File is going permanent and nationwide after a successful pilot in 12 states last year, meaning every eligible taxpayer can file their federal return for free directly with the IRS starting this upcoming tax season.
- You can only use Direct File for simpler tax situations right now—things like W-2 income, standard deduction, and common credits like the Earned Income Tax Credit (EITC) and Child Tax Credit.
- There’s zero cost and no add-on fees, unlike many commercial software options that often surprise taxpayers with hidden charges for state returns or more complex forms.
- State tax filing is not automatically included, but the IRS is working with more states to integrate Direct File so taxpayers don’t have to file state returns separately.
- If you used Direct File in the pilot, your information won’t automatically carry over—you’ll need to create a new account or transfer your data manually, so mark your calendar for launch next January.