Starting in 2025, more taxpayers will be able to file their taxes for free with the Internal Revenue Service’s Direct file program. The IRS announced that Direct File will be available to eligible taxpayers in 24 states in 2025, doubling the number of eligible states from the 2024 pilot.¹ It will also cover a wider range of tax situations, greatly expanding the number of taxpayers eligible to use the free e-filing service.

Keep reading to see who qualifies for IRS Direct File and how it works.

What is Direct File?

Direct File is a new tax tool to file federal taxes directly with the IRS. The online offering is currently available for more than 30 million eligible taxpayers and is available in both English and Spanish.²

You access Direct File pilot via the IRS website.

How much does Direct File cost?

IRS Direct File is free of charge. However, since IRS Direct File does not file state returns, taxpayers required to file a state tax return will be directed to state-supported tool after completing their federal tax return.

How does Direct File work?

Direct File is available to access online via desktop, a smartphone, or tablet. Those eligible will follow a step-by-step checklist that guides you through the filing process and helps you easily track your progress.

Live online support is available for technical assistance, but users cannot use this function to receive tax advice.

Read more: How to reduce taxable income

When can I use Direct File?

Taxpayers in eligible states can use Direct file when the 2025 tax season opens in January.

The IRS has yet to announce when Direct File will become available for everyone. The pilot is a chance for the agency to learn from taxpayers who use Direct File and determine how to improve the experience.

Who is eligible for Direct File?

The IRS has broadened the tax situations Direct File supports in 2025. You may be eligible to file your taxes via Direct File this year if you live in one of the participating states and you report these items on your 2024 federal tax return:³

Income

• W-2 wage income
• SSA-1099 Social Security income
• 1099-G unemployment compensation
• 1099- INT interest income
• 1099-R retirement income

• 1099-MISC for Alaska residents reporting the Alaska Permanent Fund Dividend

Credits

• Earned Income Tax Credit
• Child Tax Credit
• Credit for Other Dependents
• Child and Dependent Care Credit
• Premium Tax Credit
• Credit for the Elderly or Disabled
• Retirement Savings Contributions Credit

If you live in Washington state, Direct File will guide you to your state site where you can apply for the Working Families Tax Credit.

Deductions

• Standard deduction
• Student loan interest deduction
• Educator expenses
• Health savings accounts

You can't use Direct File if you itemize deductions.

Which states are participating in Direct File?

Direct File is available for taxpayers who lived and worked in one of these participating state for all of 2024:

• Alaska
• Arizona
• California
• Connecticut
• Florida
• Idaho
• Kansas
• Maine
• Maryland
• Massachusetts
• Nevada
• New Hampshire
• New Jersey
• New Mexico
• New York
• North Carolina
• Oregon
• Pennsylvania
• South Dakota
• Tennessee
• Texas
• Washington state
• Wisconsin
• Wyoming

Can I file my state tax return with Direct File?

Direct File is only available for filing federal taxes. The IRS has partnered with the states that have state income tax to route tax filers to a state-supported tool once their federal return has been filed.

Who is ineligible for Direct File?

IRS Direct File is not available for anyone who does not file taxes in one of the 24 participating states or did not live and work in an eligible state for all of 2024.

How is IRS Direct File different from IRS Free File?

Both IRS Direct File and IRS Free File are free tax filing services offered by the IRS, but with some key differences.

IRS Free File is a partnership between the tax agency and several commercial tax software providers. This service has its own eligibility rules based on age, income and state residency. Taxpayers must have an adjusted gross income (AGI) of $79,000 or to use IRS Free File.

On the other hand, Direct File has no income limits, but is only available for eligible taxpayers in 24 states.

Read more: How to calculate your adjusted gross income (AGI)

The bottom line

IRS Direct File pilot is intended to offer a range of benefits for taxpayers, including free federal tax return filing, step-by-step guidance, and real-time online support from IRS agents.

“We’re excited about the improvements to Direct File and the millions more taxpayers who will be eligible to use the service this year,” said IRS Commissioner Danny Werfel. “Above all, our goal is to improve the experience of tax filing itself and help taxpayers meet their obligations quickly and easily.”₄

To confirm if you are eligible to file your federal taxes via Direct File, and to follow along with any updates, visit the IRS website.