In the 2025 tax season, IRS free tax filing will be accessible in 24 states. Who is eligible to use it?

• For the 2025 tax filing season, 24 states will participate in the IRS's free tax filing program, Direct File.
• Over 30 million Americans will be eligible for Direct File, which now includes a wider range of income, credits, and deductions.

The IRS and the U.S. Department of the Treasury announced on Thursday that more than 30 million Americans in 24 states will be eligible for Direct File, the agency's free tax filing program, next year.

During the 2024 tax season, the Direct File pilot was accessible to a limited number of taxpayers in 12 states, including Arizona, California, Florida, Massachusetts, Nevada, New Hampshire, New York, South Dakota, Tennessee, Texas, Washington, and Wyoming.

The program will include 12 new states in its 2025 season, including Alaska, Connecticut, Idaho, Kansas, Maine, Maryland, New Jersey, New Mexico, North Carolina, Oregon, Pennsylvania, and Wisconsin, according to agency officials who spoke to reporters on a press call.

More states are expected to join in 2026.

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Who can use IRS Direct File

Taxpayers in Direct File's 24 states will experience a significant increase in tax situations being covered during this year's tax season, as announced by IRS Commissioner Danny Werfel on a press call on Thursday.

In 2024, the pilot program included taxpayers with Form W-2 wages, Social Security retirement income, unemployment earnings, and interest of $1,500 or less, but excluded contract income reported via Form 1099-NEC, gig economy workers, and self-employed filers.

In the upcoming season, Direct File will include support for interest income over $1,500, pension and annuity income (excluding individual retirement accounts), and Alaska Permanent Fund Dividends.

The pilot supported the earned income tax credit, child tax credit, and credit for other dependents.

In 2025, the program will include support for the child and dependent care credit, premium tax credit for Marketplace insurance, credit for elderly or disabled individuals, and retirement saver's credit.

To be eligible for tax breaks, filers must claim the standard deduction instead of itemizing.

In 2025, Direct File will continue to offer tax breaks for student loan interest and educator expenses, and will also include support for health savings account contributions.

Werfel stated that our objective is to progressively broaden the Direct File's scope to accommodate more typical tax scenarios, with a specific emphasis on those that affect working families.

In May, the IRS and Treasury announced a nationwide Direct File program and invited all states to participate.

In April, over 140,000 users submitted returns during the pilot, resulting in an estimated $5.6 million in tax preparation fee savings, according to the agencies.