The IRS announced on Oct. 3 that its Direct File program for the 2025 tax filing season will be available in 24 states, double the number participating in last year's pilot program.

Direct File is a free web-based e-filing service that works on mobile phones, laptops, tablets and desktop computers. It steers taxpayers through a step-by-step process and a series of questions to prepare their federal tax returns.

The IRS said that Direct File will improve in three areas: the number of states it serves, the types of tax situations it covers, and new features to facilitate the filing of taxes. The enhancements significantly expand the number of taxpayers eligible for the free e-filing service.

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

Direct File was available for the pilot last year in Arizona, California, Florida, Massachusetts, Nevada, New Hampshire, New York, South Dakota, Tennessee, Texas, Washington state and Wyoming. 

For the 2025 tax filing season, Direct File will also be available in these 12 additional states: Alaska, Connecticut, Idaho, Kansas, Maine, Maryland, New Jersey, New Mexico, North Carolina, Oregon, Pennsylvania and Wisconsin.

The service will also cover a broader range of tax situations for next year’s filing season. Last year’s Direct File pilot covered limited tax situations, such as wage income reported on a W-2 forms, Social Security income, unemployment compensation and certain credits and deductions.

For the 2025 tax filing season, the IRS said that Direct File will support 1099s for interest income exceeding $1,500, retirement income and the 1099s for Alaska residents reporting the Alaska Permanent Fund dividend.

During the pilot program, Direct File supported taxpayers in claiming the Earned Income Tax Credit, Child Tax Credit and Credit for Other Dependents. This year, Direct File will also cover taxpayers claiming the Child and Dependent Care Credit, Premium Tax Credit, Credit for the Elderly and Disabled and Retirement Savings Contribution Credits.

More than 30 million taxpayers in the 24 states will be eligible to use Direct File, the IRS said. More states could still join Direct File in 2025. Several states have either expressed interest or stated that they will take part in Direct File in 2026.

In upcoming years, the IRS will slowly expand Direct File’s scope to support the most common tax situations, with a specific focus on tax situations that impact working families.