Free Tax-Filing Program Expands to All 50 States

Here’s some good news for those who earn less than $79,000 a year—the Internal Revenue Service (IRS) will prepare and file their tax returns for free.

It’s called the Direct File program, which the IRS launched this past tax season in 12 states. More than 140,000 taxpayers used the program, claiming more than $90 million in refunds and saving users an estimated $5.6 million in filing fees. The program cost $31.8 million to implement.

Direct File was so popular and successful that the IRS last month announced it was expanding the program nationwide for the 2025 tax season. Details such as income limits ($79,000 was the income limit this year) and other restrictions will be released in coming months.

The program is designed for taxpayers with straightforward tax returns—like W2s or Social Security income—and who take the standard deduction. Other types of income, like those from gig work or other business returns, are not eligible.

Basically, filers go to the Direct File website, enter their personal and income information and the IRS calculates the taxes owed, taxes paid and any refund due and then automatically submits the return.

One of the purposes of the program is to make the filing of tax returns easier and encourage compliance. Critics of the program say it isn’t in the taxpayer’s best interest to have the tax collector also be the tax return preparer.