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IRS' Direct File is free for millions of taxpayers, but not everyone wants to keep it around

Direct File, now in its second year, lets some taxpayers electronically file their returns directly with the agency for free. Some are calling for it to be discontinued, saying the price tag may not be worth it.

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Some Republic lawmakers are calling for the removal of the service amid wider government cost-cutting.
Some Republic lawmakers are calling for the removal of the service amid wider government cost-cutting.
Internal Revenue Service

April 15 is Tax Day. If you haven’t filed yet, one option could be the IRS’ Direct File program, which lets some taxpayers electronically file their returns directly with the agency for free, as opposed to through third-party providers.

The program is in its second year and is now available in 25 states, but some are calling for it to be discontinued, saying the price tag may not be worth it.

Direct File is for taxpayers with relatively simple federal returns. You can’t use the program if you, for example, get income from the gig economy or itemize your deductions. According to IRS spokesman Anthony Burke, “If they qualify for it, what we have heard is that taxpayers like Direct File.”

About 141,000 people successfully filed with the pilot program last year, and an estimated 19 million were eligible. The count for this season is still being determined. 

However, according to Joe Hughes with the Institute on Taxation and Economic Policy, “It's still unclear to me what the future of the program will be.”

He said some Republican lawmakers have pushed to end Direct File, saying it’s not a good use of resources. The IRS said in a 2024 report that the agency spent about $25 million through the end of the pilot. 

“[Republicans have] also discussed whether or not the IRS actually has the authority to administer such a program,” Hughes said.

In his confirmation hearing, Treasury Secretary Scott Bessent pledged to keep Direct File up and running this year, but didn’t make any promises about the future. 

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