IRS Direct File Expands to 24 States in 2025, Saving Millions of Americans In Tax Preparation Fees

More than 30 million Americans across twenty-four states will be eligible for the IRS’s free Direct File tax program for the 2025 filing season. The program initially covered twelve states in 2024 and will expand to a dozen more. The Direct File system allows simple tax filings for taxpayers and new credits like the child and dependent care credit. More states are expected to join by 2026, as the program grows to accommodate working families' tax situations. More than 140,000 taxpayers used the program in 2024, saving over $5.6 million in tax preparation fees.