You already pay a lot in taxes, so it makes sense to try to save money when filing your annual tax return. Under the Biden administration, the IRS expanded the Direct File program, which allows taxpayers in participating states to file their taxes directly through the government agency for free. However, it seems the Trump administration isn’t on board.
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While the program has some support, many Republicans, and now more specifically the Department of Government Efficiency (DOGE), take major issue with it and want President Trump to abolish it. As of this tax season though, when filing for the 2024 tax year, the Direct File program is still available for you through the Tax Day deadline of April 15, 2025. Here are some key takeaways:
As part of the Inflation Reduction Act started by former President Biden, the IRS rolled out Direct File as a pilot program last year with the funds they received.
Despite the Trump administration’s animosity toward the program, the IRS is pushing to make Direct File a permanent option for taxpayers.
The IRS accepted 140,803 returns filed by taxpayers using Direct File in the 12 states where it was available last tax season.
In 2025, it’s been expanded to include nearly half the United States this year, but how many actually filed this way this tax season has not been calculated yet, but will be determined after Tax Day.
Speaking of, if you still need to file your taxes, find out about free tax software you can use here.
The IRS Direct File program is still in its infancy and has several limitations going into the 2025 tax season, including:
It’s still not available for residents of all states.
You must live and work in a participating state for all of 2024.
You can’t have business, rental or gig economy income.
You can’t itemize your deductions.
It only helps with your federal return. You must use another method to file your state return.
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Supporters believe the program helps taxpayers save money and file their returns more easily. However, twenty-nine members of Congress signed a letter penned by Representative Adrian Smith that offers two main reasons the program should get axed: It’s a conflict of interest and a waste of money.
Smith wrote, “Under the guise of offering a convenient ‘free-to-file’ alternative preparation service, the IRS asserts itself as the tax assessor, collector, preparer and enforcer — all in one — when the program is used.” He added that the IRS could benefit from people and businesses paying more in taxes than the law requires, which presents a conflict of interest.
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