The IRS has expanded its direct file program, allowing residents in 24 states to file federal taxes for free. This change simplifies tax filing by removing the need for third-party software.
In 2025, the IRS plans to include more tax scenarios in its Direct File program. This will allow for support of diverse tax situations beyond W-2 and certain income types.
Last tax season, Direct File was limited to basic situations. The expansion in 2025 aims to include a broader range of income sources and credits to benefit more taxpayers.
Taxpayers can expect easier filing next year with expanded support for various credits, including the Child and Dependent Care Credit, making it a more versatile service.
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