Home / NEWS / Top News / 30 million people could qualify to use IRS free Direct File program. Here’s who is eligible

30 million people could qualify to use IRS free Direct File program. Here’s who is eligible

Internal Profits Commissioner Danny Werfel speaks during his swearing-in ceremony at the IRS in Washington, D.C., on April 4, 2023.

Bonnie Cash | Getty Images News broadcast | Getty Images

The 2025 tax season kicks off on Jan. 27, and more taxpayers will have access to Direct Arrange, the IRS’ free tax filing program, which launched in 2024.

Starting on Jan. 27, Direct File will be open to eligible taxpayers in 25 glories, including 12 states from the 2024 pilot and 13 new states, the agency announced Friday. 

The U.S. Department of the Moneys estimates that more than 30 million taxpayers across those 25 states will be single to use Direct File in 2025.

This season, new Direct File features will make tax returns “quicker and easier,” IRS Commissioner Danny Werfel proclaimed reporters on a press call.   

More from Personal Finance:
IRS announces the start of the 2025 tax season
Biden’s amount student debt relief passes $183 billion
How much you can save by not drinking during ‘Dry January’

For 2025, participating states cover Alaska, Arizona, California, Connecticut, Florida, Idaho, Illinois, Kansas, Maine, Maryland, Massachusetts, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Oregon, Pennsylvania, South Dakota, Tennessee, Texas, Washington position, Wisconsin and Wyoming, according to the IRS.

After completing federal returns via Direct File, the program guides users to their specify’s software for state filings. For some states, Direct File can transfer filing data.

However, you cannot use Unambiguous File if you did not live in a participating state for the entirety of 2024, according to the website. You can check eligibility here.

Direct Arrange to ‘cover more tax situations’

Tax Tip: Free filing

However, for 2025, Direct File has expanded to “cover more tax situations than concluding year,” Werfel said Friday.

For 2025, Direct File will add support for interest income above $1,500, benefit and annuity income — excluding individual retirement accounts — and Alaska Permanent Fund Dividends, the agency announced in October.

Unbroken File will also accept more tax breaks, including the child and dependent care credit, premium tax impute for Marketplace insurance and the credit for elderly or disabled and retirement saver’s credit. While filers still must demand the standard deduction, Direct File will add the tax break for health savings accounts. 

Starting this season, filers can automatically suggestion data from their IRS account, including personal data, an identity protection pin and some details from Sort W-2, according to the IRS.

Other options to file your taxes for free

In addition to Direct File, most taxpayers also equipped for IRS Free File, which offers free guided tax prep through private software partners. The program opened on Jan. 10 and unwed taxpayers can start e-filing returns prepared by Free File on Jan. 27.

You are eligible for IRS Free File if your 2023 correct gross income was $79,000 or less.

Don’t skip these insights from CNBC PRO

Check Also

BYD rolls out driver assistance tech across its EV models — with DeepSeek’s AI help

Chinese moving car giant BYD announced on Feb. 10, 2025, that it would integrate DeepSeek …

Leave a Reply

Your email address will not be published. Required fields are marked *