In 2025, more than 30 million U.S. taxpayers are eligible to file their federal taxes at no cost, thanks to the expansion of the IRS Direct File system and other free filing programs.
As tax season approaches, the IRS is encouraging individuals to take advantage of these no-cost options to avoid unnecessary software fees and additional stress.
The April 15, 2025 tax filing deadline is quickly approaching, and taxpayers now have multiple ways to file without spending a dime.
IRS Direct File: A Convenient and Free Option
The IRS Direct File system is one of the newest ways for eligible taxpayers to file taxes directly with the IRS without paying any fees.
The service works on mobile devices, tablets, and computers, providing an easy-to-use, step-by-step guide through the tax filing process. Initially launched in 12 states, it has now expanded to 25 states as of 2025.
Eligible States for IRS Direct File:
- Alaska
- Arizona
- California
- Connecticut
- Florida
- Idaho
- Illinois
- Kansas
- Maine
- Maryland
- Massachusetts
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- Oregon
- Pennsylvania
- South Dakota
- Tennessee
- Texas
- Washington
- Wisconsin
- Wyoming
Eligibility for IRS Direct File
To qualify for IRS Direct File, taxpayers must meet the following criteria:
- Residency: Must have lived and worked in one of the eligible states for the entire 2024 tax year.
- Income: The system supports simple income types, such as:
- W-2 wages
- SSA-1099 Social Security benefits
- 1099-G unemployment income
- 1099-INT interest income
- 1099-MISC (Alaska Permanent Fund Dividend for Alaska residents)
Starting March 5, 2025, the system will also allow users to report retirement income (via 1099-R) and rollovers between employer-sponsored plans and IRAs.
However, complex tax returns, such as those involving gig economy income, self-employment, or rental income, are not supported at this time.
Other Free Tax Filing Options
For taxpayers not eligible for Direct File, other free filing options are available:
IRS Free File Program:
- Eligibility: Individuals and families with an adjusted gross income (AGI) of $84,000 or less.
- Benefits: Offers free tax preparation software through the IRS Free File platform.
- Additional Option: Fillable Forms are available for any income level if taxpayers prefer to prepare their return manually.
Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE):
- Eligibility: Low-to-moderate-income taxpayers, seniors, and non-English speakers.
- Benefit: Free in-person assistance provided by IRS-certified volunteers.
MilTax Program:
- Eligibility: Military members and some veterans.
- Benefit: Free federal and up to three state tax filings, regardless of income level.
Tax Scams: Stay Vigilant
During tax season, the IRS warns taxpayers to be cautious of tax scams. Scammers often impersonate the IRS via phone calls, texts, and emails, demanding immediate payments. The IRS will never contact taxpayers through these methods.
How to Avoid Scams:
- Verify through IRS.gov: Always log into your IRS online account securely to check your tax status.
- Be cautious with unsolicited calls or messages: The IRS does not initiate contact in this way.
Important Dates to Remember
- Tax Filing Deadline: April 15, 2025.
- IRS Free File and Direct File: Available for eligible taxpayers.
- IRS Payment Processing: Refunds are already being processed, with the average refund being over $3,300.
How to Take Action
Taxpayers who qualify for free tax filing options should act now to avoid unnecessary software fees. Whether using Direct File, IRS Free File, or seeking assistance through VITA/TCE, there are more opportunities than ever to file taxes easily and affordably.
With the IRS expanding free tax filing options in 2025, more taxpayers than ever before can file their returns without incurring fees.
Whether through Direct File, IRS Free File, or other free programs, individuals should take advantage of these services to avoid costly fees and ensure they meet the April 15, 2025 deadline.
Staying informed about eligibility, deadlines, and available resources will make tax season smoother and more affordable for many.
FAQs
What is the IRS Direct File system?
The IRS Direct File system allows eligible taxpayers to file their federal taxes directly with the IRS without any fees, using mobile devices or computers.
Who is eligible for the IRS Free File program?
The IRS Free File program is available for individuals and families earning $84,000 or less in adjusted gross income (AGI).
Can military members use MilTax to file their taxes?
Yes, MilTax is a free program for military members and some veterans, providing free federal and state tax filing services.