IRS Direct File set to expand availability in a dozen new states and cover wider range of tax situations for the 2025 tax filing season

Expanded Direct File Service Available for 2025 Tax Season

For the 2025 tax filing season, eligible taxpayers in 24 states will have access to Direct File—a user-friendly, web-based service for filing federal tax returns. This includes 12 states from last year’s pilot program and 12 new states joining the service.

States Eligible for Direct File in 2025

Last year’s pilot included states such as Arizona, California, and New York. For 2025, Direct File is expanding to include Alaska, Connecticut, North Carolina, and more, enabling over 30 million taxpayers to use this free service. Some additional states may join later in 2025, while others have expressed interest for 2026.

Enhanced Features and Expanded Coverage

Direct File now supports a broader range of tax situations. While the pilot phase included basic tax scenarios like W-2 wage income and certain credits, the 2025 version expands to include 1099 interest income over $1,500, retirement income, and more. Taxpayers can now claim additional credits like the Child and Dependent Care Credit and deductions for Health Savings Accounts. This expansion aims to support more working families and simplify the filing process.

Focus on User Experience and Customer Support

Direct File is accessible on mobile devices, laptops, and desktops, guiding users through their federal returns step by step. This year, a new chat bot will help users determine eligibility, and live chat support remains available in English and Spanish. Additionally, enhanced verification options ensure secure access to more detailed customer support.

IRS Commitment to Taxpayer Choice

Following the successful pilot, the IRS has made Direct File a permanent option, working alongside tax professionals and commercial software. The pilot also brought renewed interest in all free filing options, including the Free File program, Volunteer Income Tax Assistance (VITA), and Tax Counseling for the Elderly (TCE). The IRS plans to continue strengthening these services to ensure a comprehensive set of no-cost options.

Looking Ahead

Direct File’s expansion represents a commitment to making tax filing easier and more accessible for millions. As the 2025 season approaches, taxpayers in eligible states will be able to use this service when the filing window opens, alongside traditional filing methods.