The $3.8 trillion Republican tax bill that just passed the House includes a provision to kill off the popular IRS Direct File program, which lets people file their federal income tax returns for free online.
The bill still needs to pass the Senate to become law, but if the bill is enacted as currently written, the Direct File program is slated to be eliminated within 30 days of the law’s passage.
The bill also requires the U.S. Treasury Department to create a task force to design a partnership between the IRS and private-sector tax service providers. The task force would need to identify ways to replace any “free file programs and direct e-file tax return systems.” That includes the IRS Free File program, an existing public-private partnership.
Learn more: Five ways to file your taxes for free in 2025
Direct File: A popular way to file taxes
IRS Direct File, which is separate from the Free File program, is a popular free option that offers guidance and support as you fill out your federal income tax return and file your taxes directly with the IRS. Most taxpayers have rated the Direct File program positively: About 90 percent of taxpayers said their experience was excellent or above average, according to a survey by the General Services Administration of about 11,000 Direct File users in 2024.
On top of that, interest in the program is clear: About 73 percent of taxpayers said they’d be somewhat or very interested in using Direct File, according to a Tax Policy Center report in March, based on a survey of taxpayers aged 18 to 64.
The Direct File program has been in Republican lawmakers’ crosshairs for a while. In December, almost 30 Republican lawmakers sent a letter to President-elect Donald Trump, calling for him to end the Direct File program on his first day in office. Lawmakers in the U.S. House of Representatives introduced legislation last July to end the Direct File program.
Elon Musk, de facto head of the “Department of Government Efficiency,” or DOGE — also isn’t a fan of the program. In February, he posted on social media that the government tech office that developed the Direct File program had been “deleted.”
Currently, the IRS’s Direct File page is still up and running.
Direct File available to 30 million taxpayers in 2025
Direct File doubled its reach to 25 states for the 2025 tax season, up from 12 states in 2024, the program’s pilot year.
An estimated 30 million taxpayers qualify for the Direct File program in 2025, the IRS says. More than 140,000 taxpayers filed their federal tax returns through the Direct File program in 2024.
The Direct File program also expanded to accept more types of tax situations for the 2025 tax season. While taxpayers who used the system in 2024 could claim a handful of tax credits, including the earned income tax credit and the child tax credit, that list expanded for this filing season to include the child and dependent care credit, among others.
However, taxpayers who want to claim other tax credits, such as the American Opportunity Tax Credit for higher education costs, or the tax credit for the costs of adopting a child, won’t qualify for Direct File. And if you’re hoping to deduct IRA contributions, Direct File doesn’t support that. (See the full list of credits and deductions supported by Direct File on this IRS page.)
What is IRS Direct File?
The Direct File program, now in its second year, allows taxpayers to file their federal tax returns electronically with the IRS. The no-cost tool guides taxpayers through every part of their federal income tax return. Taxpayers can file using a smartphone, computer or tablet.
One of the program’s advantages is that, if you have questions as you’re working on your return, you can get live support directly from the IRS via chat or phone. IRS representatives can answer basic tax questions and help with technical issues in English and Spanish.
Who qualifies for IRS Direct File?
The Direct File program has income limits, as well as limits on the types of income, deductions and credits you can enter on your tax return.
Income limits
For the 2025 tax season:
Your income must be less than $200,000 (less than $168,600 if you have more than one employer), and if you’re married filing jointly, your spouse’s income also must fall below these limits.
If you’re married filing jointly, your combined income must be less than $250,000.
If you’re married and file separately from your spouse, your income must be less than $125,000.
Learn more: Current federal tax brackets and income tax rates
Types of income
To be eligible for Direct File, your income can come from the following sources:
W-2 wages
Social Security income
Unemployment compensation
Interest income
Retirement income (reported on a 1099-R — limited eligibility starts March 2025)
But if you’re self-employed, or have business or rental income, you can’t use Direct File. Same goes for IRA contributions or distributions: If you have either, you can’t use Direct File.
Tax deductions
You can use the IRS Direct File program only if you claim the standard deduction — the program isn’t available to people who itemize.
Learn more: Standard deduction vs. itemized deductions: Pros, cons and how to decide
But you can claim certain above-the-line deductions: student loan interest, educator expenses and health savings account contributions.
You can’t use Direct File if you want to deduct your IRA contributions.
Tax credits
The Direct File program supports the following tax credits in 2025:
Earned income tax credit
Child tax credit
Credit for other dependents
Child and dependent care credit
Premium tax credit
Credit for the elderly or disabled
Retirement savings contribution credit
However, if you want to claim education credits, credits for energy efficient home upgrades or the adoption expense credit, you can’t use the Direct File program.
Which states offer IRS Direct File?
More taxpayers will have access to the IRS Direct File program in 2025. In 2024, the IRS kicked off the program with only 12 states; that number has expanded to 25 states for the 2025 tax season.
For some of the states that participate in the IRS Direct File program, your federal return information will be transferred automatically to the state tax website, but in some cases you’ll have to re-enter your information. Visit this IRS Direct File page to get the details for your state.
Here is a list of the participating states:
Alaska | New Jersey |
Arizona | New Mexico |
California | New York |
Connecticut | North Carolina |
Florida | Oregon |
Idaho | Pennsylvania |
Illinois | South Dakota |
Kansas | Tennessee |
Maine | Texas |
Maryland | Washington |
Massachusetts | Wisconsin |
Nevada | Wyoming |
New Hampshire |
What if you’re not eligible to use Direct File?
If you don’t qualify for the IRS Direct File program, you may have other options to file your tax return for free.
In addition to Direct File, the IRS offers the Free File program, in which it partners with online tax software providers to provide free federal income tax return filing. Some providers also allow you to file a state income tax return.
For the 2025 tax season, your adjusted gross income must be $84,000 or less to qualify for the Free File program. That AGI applies to any filing status: married filing jointly, single, head of household, etc.
The IRS also offers the Volunteer Income Tax Assistance (VITA) program, which provides certified volunteers to prepare basic tax returns if you earn less than $67,000 a year, are disabled, or speak limited English. You can find a site near you by visiting this IRS page.
