As the 2025 tax season approaches, the Internal Revenue Service (IRS) is reminding taxpayers to take advantage of multiple free filing options available to them, with particular emphasis on its newly expanded "Direct File" service now available in 25 states.
The tax agency is intensifying its outreach efforts to encourage taxpayers to try the free filing alternative as many Americans struggle with the complexity of tax preparation. The Direct File service allows users to complete their federal tax returns through a step-by-step question-and-answer format accessible via smartphones, laptops, tablets, or desktop computers. The system also automatically guides users through state tax filings without requiring additional steps.
Expanded Features and Eligibility
Originally launched as a pilot program last year, Direct File has now been formally expanded to 25 states following positive user feedback. Key features include data import tools that automatically pull personal information, Identity Protection PINs, and some W-2 details directly from IRS accounts. Taxpayers can also access assistance through online chat functions, customer service hotlines, and chatbot guidance for troubleshooting.
The service now accommodates taxpayers with specific income types, including those reporting retirement income, contributions, or rollovers. Building on last year's support for various tax credits—including the Earned Income Tax Credit, Child Tax Credit, and Other Dependent Credits—the 2025 version adds eligibility for:
- Child and Dependent Care Credit
- Premium Tax Credit
- Credit for the Elderly or Disabled
- Retirement Savings Contributions Credit
- Health Savings Account deductions
State Availability and Alternative Programs
The Treasury Department estimates that over 30 million taxpayers now qualify for Direct File across the 25 participating states:
Alaska, Arizona, California, Connecticut, Florida, Idaho, Illinois, Kansas, Maine, Maryland, Massachusetts, Nevada, New York, New Jersey, New Mexico, North Carolina, Oregon, Pennsylvania, South Dakota, Tennessee, Texas, Washington, Wisconsin, and Wyoming.
Beyond Direct File and the IRS Free File program, the agency highlighted other free assistance options including Volunteer Income Tax Assistance (VITA), Tax Counseling for the Elderly (TCE), and MilTax—a Defense Department program offering free tax preparation and e-filing software for military personnel.