IRS Opening Free Online Tax Filing Program To All States

The free online tax filing program known as IRS Direct File will be made permanent for the 2025 tax season, with all 50 states and Washington D.C. invited to participate. Axios reports: Treasury announced earlier this month that more than 140,000 people participated in the Direct File pilot program in a dozen states claiming more than $90 million in refunds. The pilot exceeded its 100,000-person target during this past tax season. "President Biden is committed to saving Americans time and money and ensuring families receive the tax benefits they're owed," Treasury Secretary Janet Yellen said in a statement. "Providing a free tool to all Americans who want the option to file directly with the IRS is key to achieving those goals." The pilot program targeted people with simple tax returns based on W-2 forms. In her remarks today Yellen said that over the next few years they will expand Direct File to support more situations. The announcement from the Treasury Department comes a week after the IRS' Free File program was extended through 2029. "Free file is where some of your tax dollars go to create the bridges between 3rd parties and the IRS filing system," notes Slashdot reader slack_justyb. "Direct file is the taxpayer to IRS direct system that we got a taste of this year. We want to keep on the direct file path, but the free file path helps breakup the larger entities out there that lobby hard to keep the return-free system from ever getting started."

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