NEW YORK — Although the start of tax season is still a few months away, the Internal Revenue Service (IRSfor its acronym in English) announces good news for taxpayers.
The IRS’s free tool, Direct File, will be available for the 2025 filing season in more states across the country, including those in the tri-state area, and will cover a broader range of tax situations, greatly expanding the number of taxpayers who qualify to use the electronic filing service.
“We are excited about the improvements to Direct File and the millions of additional taxpayers who will be eligible to use the service this year,” said IRS Commissioner Danny Werfel. “Above all, our goal is to improve the tax filing experience itself and help taxpayers meet their obligations quickly and easily. Direct File will be a critical part of achieving that goal as we expand and improve the service.”
Below we explain what you should know about Direct File:
What is Direct File and how will it change by 2025?
Direct File is a web-based service that works on mobile phones, laptops, tablets or desktop computers. It guides taxpayers through a series of questions to prepare their federal tax return step by step. Last year, thousands of Direct File users received help from IRS customer service representatives through a live chat feature in English and Spanish.
Once taxpayers have completed their federal tax return, the Direct File system automatically guides them to state tools to complete their state tax returns.
For the 2025 tax filing season, Direct File will include new features to make filing taxes faster and easier. Direct File users can try a new chatbot to help guide them through the eligibility checker. Live chat will again be available in English and Spanish, and users can opt for additional authentication and verification, allowing customer service representatives to provide more information.
We tell you details here.
Which states will be able to use the Direct File tool?
By the 2025 filing season the tool will be in 12 more states, meaning taxpayers who meet the criteria in 24 states will now be able to use Direct File.
These are the states:
- New York.
- New Jersey.
- Connecticut.
- Arizona.
- California.
- Florida.
- Massachusetts.
- Nevada.
- New Hampshire.
- Dakota del Sur.
- Tennessee.
- Texas.
- Washington.
- Wyoming.
- Alaska.
- Idaho.
- Kansas.
- Maine.
- Maryland.
- New Mexico.
- North Carolina.
- Oregon.
- Pennsylvania.
- Wisconsin.
By 2025, more than 30 million taxpayers in those 24 states will be eligible to use the Direct File system. Other states could still join the Direct File system in 2025, and several states have expressed interest or announced that they will participate in the Direct File system in 2026.
What forms does Direct File support?
The service will also cover a broader range of tax situations for the 2025 filing season. During last year’s pilot, Direct File covered limited tax situations, including wage income reported on a W-2 form, income from Social Security, unemployment compensation, and certain credits and deductions.
For the 2025 tax filing season, Direct File will support Forms 1099 for interest income over $1,500, retirement income, and Form 1099 for Alaska residents reporting the Alaska Permanent Fund dividend.
During the pilot program, Direct File provided support to taxpayers claiming the Earned Income Tax Credit, Child Tax Credit, and Other Dependents Credit.
This year, Direct File will also cover taxpayers who claim the Child and Dependent Care Credit, Premium Tax Credit, Elderly and Disabled Credit, and Retirement Savings Contribution Credits.
In addition to covering taxpayers who claim the standard deduction and deductions for student loan interest and education expenses, this year, Direct File will provide support to taxpayers who claim deductions for Health Savings Accounts.
When can I start using Direct File?
Direct File will begin accepting tax returns when filing season opens.
