As tax season approaches, Democratic and Republican lawmakers remain divided over the future of Direct File, the IRS’s free tax filing program.
In 2024, Direct File expanded to a limited number of taxpayers across 25 states and processed approximately 140,000 returns during its pilot phase, which launched mid-season. The pilot was limited to handling simple returns in 12 states.
The program has faced criticism from Republican lawmakers, who have advocated for ending the free filing service. Their opposition has sparked uncertainty about Direct File’s future, particularly if the GOP maintains control of the White House, Senate, and House of Representatives.
The IRS Direct File Arrives at New York: Now in a total of 25 states
In an exciting development for residents of New York, Governor Kathy Hochul has unveiled that New Yorkers can now file their state and federal income taxes online without any cost.
This initiative is powered by Direct File, a user-friendly self-service tool designed to simplify the tax filing process. Originally launched in 2024 as a pilot program in collaboration with the IRS, it was initially available to a select group of taxpayers with relatively straightforward returns.
Governor Hochul highlighted the program’s success, noting that an impressive 96% of early participants reported a positive experience with the tool. This feedback has paved the way for further enhancements and expansion.
The upcoming 2025 iteration of the program will broaden its eligibility criteria, encompassing a wider range of tax credits and different types of income. This expansion aims to make tax filing even more accessible and affordable for New Yorkers.
To determine if you qualify to use Direct File, visit the Tax Department’s website. Alongside Direct File, the Tax Department provides additional e-file options, ensuring you can file your taxes for free and with ease. This initiative not only simplifies the tax filing process but also empowers New Yorkers to take control of their finances, making tax season a little less daunting.
In last year’s pilot, states where Direct File was available (as a pilot program) were Arizona, California, Florida, Massachusetts, Nevada, New Hampshire, New York, South Dakota, Tennessee, Texas, Washington, and Wyoming. In the 2025 season, Alaska, Connecticut, Idaho, Kansas, Maine, Maryland, New Jersey, New Mexico, North Carolina, Oregon, Pennsylvania, and Wisconsin have been welcomed to the list of participating states.
How to use the IRS Direct File for free
The IRS Direct File program is a free and simple way for eligible taxpayers to file their federal income taxes without relying on third-party services. While the program is limited to certain taxpayers and states, those who qualify can take advantage of a streamlined and cost-free filing process. Here’s a step-by-step guide to using Direct File effectively:
1. Check Your Eligibility
Before using Direct File, confirm whether you meet the program’s criteria. Eligibility typically depends on factors like the complexity of your tax return and your state of residence. The program is currently available to taxpayers with simple returns and is accessible in a limited number of states. Check the IRS website for the latest details on eligibility requirements.
2. Gather Your Documents
To begin, collect all necessary tax documents, including your W-2 forms, 1099s, and any records related to deductions or credits you plan to claim. Having these documents ready ensures a smooth filing experience and reduces the likelihood of errors.
3. Access the Direct File Portal
Visit the official IRS website and navigate to the Direct File section. You’ll find detailed instructions and resources to guide you through the filing process. If you’re new to Direct File, the portal provides user-friendly tools and support to help you get started.
4. Create an Account or Log In
If this is your first time using Direct File, you’ll need to create a secure account with the IRS. This involves providing basic personal information and verifying your identity. Returning users can log in with their existing credentials.
5. Enter Your Information
Follow the prompts to input your income, deductions, and credits. The system will guide you step by step, ensuring that all required fields are completed. Direct File also performs basic calculations to help minimize errors and maximize your refund.
6. Review and Submit
Once you’ve entered all your information, review your return carefully. The Direct File system allows you to double-check for mistakes and make corrections before submitting. When you’re satisfied, submit your return electronically. You’ll receive a confirmation email once the IRS accepts it.
7. Track Your Refund
After submitting your return, use the IRS’s “Where’s My Refund?” tool to monitor the status of your refund. Direct File ensures your return is processed quickly, often resulting in faster refunds compared to paper filing.
