With Tax Day approaching, taxpayers who haven’t filed yet could have a great option. Half the states now have access to a zero-cost tool created by the IRS called Direct File that allows people to file taxes online directly to the government using question-based software.

Direct File is a much better option than paying for expensive corporate-owned software or hiring a private tax-prep company. The typical taxpayer spends an average of eight hours yearly completing their returns and shells out $160 to pay for a service that should be — and is now — free.

Last year, Direct File software was made available through a pilot program to those with relatively simple tax situations in Arizona, California, Florida, Massachusetts, Nevada, New Hampshire, New York, Texas, Tennessee, South Dakota, Washington and Wyoming.

This year, in addition to the 12 states from last year’s pilot program, all of which are participating again, Direct File has been expanded to include Alaska, Connecticut, Idaho, Illinois, Kansas, Maine, Maryland, New Jersey, New Mexico, North Carolina, Oregon, Pennsylvania and Wisconsin.

Thirty million people in the 25 participating states are eligible to use Direct File, and there are many reasons to welcome this new e-file tool created by the IRS.

You can check whether you’re eligible by going to directfile.irs.gov.

Direct File was designed to make it as easy as possible for people to file taxes. In addition to being free, the tool is mobile-friendly, available in English and Spanish, and has live-chat assistance from the IRS. Moreover, the tool now pre-populates some information that the IRS already has in its records to make the process even quicker and error-free, which is a vast improvement over its original version.

Moreover, Direct File is intended to help people claim credits like the Earned Income Tax Credit (EITC), which one in five eligible filers don’t claim. Research shows that when Direct File has been fully scaled up, collectively, Americans could save up to $11 billion in filing costs alone, while low- and moderate-income families could recoup $12 billion in tax credits like the EITC and Child Tax Credit that they’re currently missing out on. That money could come in handy for families struggling to make ends meet in these times of rising costs.

Predictably, Direct File is overwhelmingly popular with the American public. More than 90% of people who used Direct File last year said the tool is “Excellent” or “Above average.”

The user testimonials speak for themselves. “It was the fastest I’ve ever done my taxes,” said one user. “I wish everyone could do their taxes that easily,” another said.

It’s not just popular with those who’ve used it. Direct File has been cheered by more than 140 members of Congress, 16 attorneys general, 134 leading experts on the U.S. tax system, and more than 250 national, state and local organizations representing all 50 states, the District of Columbia and Puerto Rico.

During his confirmation hearing, Treasury Secretary Scott Bessent said he would commit to keeping Direct File in 2025. However, amid the current chaos in the federal government, its future in 2026 and beyond is less certain. Big tax prep corporations that stand to lose have been handing out cash to opponents of Direct File in Congress hoping to gut the program.

For Direct File to remain an option, taxpayers must take advantage of the tool right now. Widespread participation will help solidify the future of this vital service.

So, if you haven’t filed your taxes yet, go to directfile.irs.gov to see if you are eligible.

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ABOUT THE WRITER

Susan Harley is the managing director of Public Citizen’s Congress Watch division. She wrote this for InsideSources.com.

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