WASHINGTON-Today, the U.S. Department of the Treasury and Internal Revenue Service (IRS) announced that more than 30 million taxpayers in 24 participating states will be eligible for Direct File in Filing Season 2025. The average American spends $270 and 13 hours filing their taxes. Through Direct File, made possible by the Biden-Harris Administration’s Inflation Reduction Act, eligible Americans are able file their taxes online for free, directly with the IRS, saving potentially hundreds of dollars and hours of time.
“Thanks to the Biden-Harris Administration’s Inflation Reduction Act, the IRS is able to provide more than 30 million Americans with the option to file their taxes for free in an easy way,” said Secretary of the Treasury Janet L. Yellen. “By doubling the number of participating states and expanding eligibility, Direct File has the potential to save Americans tens of millions of dollars in filing fees in the upcoming filing season, advancing the Biden-Harris Administration’s goal of reducing costs for American families. As Filing Season approaches, taxpayers in the 24 participating states should check their eligibility for this free and easy tool to see if it’s the right option for them.”
In Filing Season 2025, Direct File will be available in Alaska, Arizona, California, Connecticut, Florida, Idaho, 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.
Direct File provides a free, easy, and secure option for taxpayers with simple tax situations in participating states. Direct File has no hidden fees, is available in Spanish, and works as well on a smartphone as it does on a tablet or computer. Direct File shows taxpayers the math so they can be sure that their return is accurate, and they are getting their maximum refund.
For years, many other countries have offered their taxpayers an option to file their taxes online for free, but due to decades of underfunding the IRS was unable to provide this and other online services to Americans, raising the cost of tax filing and delaying refunds. The Biden-Harris Administration’s Inflation Reduction Act has changed this by providing the IRS with the resources to deliver world class service to American taxpayers.
In Filing Season 2024, the IRS ran a pilot program for Direct File in 12 states and more than 140,000 taxpayers successfully filed their taxes using the tool. Reviews were overwhelmingly positive with more than 90% of respondents rating their experience with Direct File as “excellent” or “above average” in a GSA Touchpoints survey of 11,000 users, and users reporting filing their taxes in around an hour or less.
The number of states offering Direct File will double in Filing Season 2025 to 24, and 62% of Americans will live in states that will offer Direct File. Treasury and the IRS have also secured commitments from additional states to join Direct File in Filing Season 2026, as part of their work to progressively expand the tool’s reach.
Building on last year’s success, Direct File will now cover additional types of income, credits, and deductions with an estimated more than 30 million taxpayers eligible to use Direct File across the 24 participating states.
As it did in Filing Season 2025, Direct File will support common tax situations including:
- A parent with W-2 income that claims the Earned Income Tax Credit and Child Tax Credit.
- A recent graduate with W-2 income, who pays student loan interest.
- A retired senior citizen with Social Security income.
For Filing Season 2025, Direct File will now also support additional income types and credits for individuals who meet other eligibility requirements, including the Credit for Other Dependents, Child and Dependent Care Credit, Premium Tax Credit, Retirement Savings Contributions Credit, as well as the deduction for Health Savings Accounts. Treasury Department and the IRS’ goal in the coming years is to expand the reach and tax scope of Direct File to provide an option for working-and middle-class taxpayers nationwide. More comprehensive information on the eligibility requirements for Filing Season 2025 can be found here.
The IRS will also bolster Direct File’s already robust customer service support. In the Direct File Pilot, customer service representatives handled 38,600 chats with an average wait time of less than a minute and resolved taxpayer questions in nine minutes on average. In addition, 90% of survey respondents who used customer support rated their experience as “excellent” or “above average.”
In Filing Season 2025, Direct File will have a new chat bot to provide guided help on the eligibility checker. Live Chat will again be available in English and Spanish and will have enhanced authentication and verification features to allow customer service representatives to provide more information. Taxpayers will also be able to request a callback where IRS customer service representatives can provide technical support and answer basic tax questions in English and Spanish.
State-by-state eligibility:
| State | Estimate of Potentially Eligible Taxpayers |
|---|---|
| Alaska | 100,000 |
| Arizona | 1,140,000 |
| California | 5,620,000 |
| Connecticut | 520,000 |
| Florida | 3,220,000 |
| Idaho | 210,000 |
| Kansas | 410,000 |
| Maine | 170,000 |
| Maryland | 870,000 |
| Massachusetts | 1,050,000 |
| Nevada | 490,000 |
| New Hampshire | 180,000 |
| New Jersey | 1,370,000 |
| New Mexico | 300,000 |
| New York | 3,250,000 |
| North Carolina | 1,670,000 |
| Oregon | 640,000 |
| Pennsylvania | 2,140,000 |
| South Dakota | 110,000 |
| Tennessee | 800,000 |
| Texas | 4,200,000 |
| Washington | 920,000 |
| Wisconsin | 830,000 |
| Wyoming | 60,000 |