Will the IRS's Free Direct File Option Be Back Again in 2025?

Some lawmakers and taxpayers are hailing the IRS’s pilot test for a free, government-run tax-filing tool as a major success, but the future of the program hangs in the balance.

During the 2024 tax filing season, the IRS says more than 140,000 Americans successfully filed their federal taxes for free using the new online tool, known as Direct File, saving them an estimated $5.6 million in tax preparation fees. Last week, more than 130 Democratic lawmakers signed a letter to the U.S. Department of the Treasury urging the IRS to expand the program and make it permanent.

“The Direct File pilot has been a clear and resounding success,” the letter states, then suggests that the tool be implemented nationwide for future tax seasons.

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The IRS launched the Direct File pilot program in March to taxpayers in 12 states. Even though nearly 19 million Americans were eligible to participate in the pilot, the IRS says it was expecting just 100,000 successfully filed federal returns. The amount of users, the agency says, exceeded expectations.

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