The IRS Direct File program, which lets taxpayers file their federal income tax return directly with the IRS for free, is doubling its reach to 24 states for the 2025 tax season, up from 12 states in 2024, the programโs pilot year.
The Direct File program will also accept more types of tax situations for the 2025 tax season. While taxpayers who used the system in 2024 could claim a handful of tax credits, including the earned income tax credit and the child tax credit, that list is expanding in 2025 to include the child and dependent care credit, among others.
An estimated 30 million taxpayers will qualify for the Direct File program in 2025, the IRS says. More than 140,000 taxpayers filed their federal tax returns through the Direct File program in 2024. About 90% of users said their experience was excellent or above average, according to a survey of about 11,000 Direct File users in 2024, conducted by the General Services Administration.
The IRS says Direct File will be available until Oct. 15. But the programโs future is somewhat unclear: In December, 29 Republican lawmakers sent a letter to President-elect Donald Trump, calling for him to end the Direct File program on his first day in office. Lawmakers in the U.S. House of Representatives also introduced legislation in July to end the Direct File program.
For now, hereโs what you need to know about how the IRS Direct File program works, and how to qualify for it.
What is IRS Direct File?
The Direct File program is a new initiative, about to enter its second year, that allows taxpayers to file their federal tax returns electronically with the IRS. The no-cost tool guides taxpayers through every part of their federal income tax return. Taxpayers can file using a smartphone, computer or tablet.
One of the programโs advantages is that, if you have questions as youโre working on your return, you can get live support directly from the IRS via chat or phone. IRS representatives can answer basic tax questions and help with technical issues in English and Spanish.
Who qualifies for IRS Direct File?
The Direct File program has income limits, as well as limits on the types of income, deductions and credits you can enter on your tax return.
Income limits for the 2025 tax season:
โขย Your income must be less than $200,000 (less than $168,600 if you have more than one employer), and if youโre married filing jointly, your spouseโs income also must fall below these limits.
โขย If youโre married filing jointly, your combined income must be less than $250,000.
โขย If youโre married and file separately from your spouse, your income must be less than $125,000.
Income can come from the following sources:
โขย W-2 wages
โขย Social Security income
โขย Unemployment compensation
โขย Interest income
โขย Retirement income (reported on a 1099-R โ limited eligibility starts March 2025)
But if youโre self-employed, or have business or rental income, you canโt use Direct File. Same goes for IRA contributions or distributions: If you have either, you canโt use Direct File.
Tax deductions:
You can use the IRS Direct File program only if you claim the standard deduction โ the program isnโt available to people who itemize. But you can claim certain above-the-line deductions: student loan interest, educator expenses and health savings account contributions.
You canโt use Direct File if you want to deduct your IRA contributions.
Tax credits allowed in 2025:
โขย Earned income tax credit
โขย Child tax credit
โขย Credit for other dependents
โขย Child and dependent care credit
โขย Premium tax credit
โขย Credit for the elderly or disabled
โขย Retirement savings contribution credit
However, if you want to claim education credits, credits for energy-efficient home upgrades or the adoption expense credit, you canโt use the Direct File program.
Which states offer IRS Direct File?
More taxpayers will have access to the IRS Direct File program in 2025. In 2024, the IRS kicked off the program with only 12 states; that number has expanded to 24 states for the 2025 tax season.
For some of the states that participate in the IRS Direct File program, your federal return information will be transferred automatically to the state tax website, but in some cases youโll have to re-enter your information. Visit the IRS Direct File website to get the details for your state.
The participating states for 2025 are 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, Wisconsin and Wyoming.
What if youโre not eligible to use Direct File?
If you donโt qualify for the IRS Direct File program, you may have other options to file your tax return for free.
In addition to Direct File, the IRS offers the Free File program, in which it partners with online tax software providers to provide free federal income tax return filing. Some providers also allow you to file a state income tax return.
For the 2024 tax season, your adjusted gross income had to be less than $79,000 to qualify for the Free File program. That dollar threshold is likely to rise slightly for the 2025 tax season.
