IRS Direct File program now open. Who’s eligible, how to file your taxes for free in Florida
The Internal Revenue Service's new free online Direct File service is open for business.
Last year, more than 20,000 Florida taxpayers took advantage of the pilot program that allowed taxpayers to prepare and file their taxes online directly to the government for free, part of over 140,000 taxpayers in a dozen states.
Direct File has been expanded for 2025 to more than twice as many states — including Florida again — with a wider range of eligible tax situations and a new feature: you'll have the option to import information the IRS already has, such as much of the info on your W-2, to save time as you file.
Direct File began accepting tax returns on Monday, Jan. 27, 2025.
The Direct File program is free, easy to use, mobile-friendly and accurate, according to the IRS, available in English and Spanish, and taxpayers can get real-time support from IRS customer service representatives while they're filling it out. Last year's program only covered a few basic returns but this year that coverage has been expanded to include more tax credits and deductions for health savings accounts, among others.
You'll also be able to file retirement income, although Direct File will not support Form 1099-R until March.
In May, the IRS announced the program was successful and would be a permanent option for taxpayers. However, the program might not last long under the new administration.
Reminder: Floridians affected by hurricanes Helene and Milton have an extra couple of weeks to file, according to the IRS.
Will Trump kill the IRS Direct File program?
In December, Nextgov reported that nearly 30 Republican legislators asked President-elect Donald Trump to stop Direct File on day one of his presidency.
“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,” the lawmakers wrote.
Trump nominated former Missouri Rep. Billy Long, who is also a former auctioneer, conservative talk radio host and tax adviser, to be his new head of the agency to replace current IRS Commissioner Danny Werfel. There has been no official word about any potential changes to IRS policy and programs.
The Washington Post reported that Elon Musk and Vivek Ramaswamy's White House advisory board, called the Department of Government Efficiency, was looking at a free mobile tax filing app in their recommendations for changes to the IRS.
However, Scott Bessent, the hedge fund executive Trump chose for his Treasury Secretary, committed to keeping the Direct File program open for at least this tax season during his Senate confirmation hearing this month.
What is the IRS Direct File program?
If you are eligible, the Direct File program allows you to file your taxes directly with the IRS for free. The service guides you through preparing your return with a step-by-step checklist and will show you a clear summary at the end, the IRS said.
You can use it from your smartphone, laptop, tablet or desktop computer, no additional software is needed. And you can ask for help.
"Our IRS Direct File customer service representatives can provide technical support and answer basic tax law questions related to the pilot’s tax scope – in both English and Spanish," the IRS said. "The assistors will not have access to your IRS account data. Any questions or issues that fall outside of Direct File will be routed to other IRS support channels."
What has changed this year in the IRS Direct File?
Last year, Direct File was limited to wage income reported on a W-2 form, Social Security income, unemployment compensation and certain credits and deductions. For this year, Direct File will support 1099s for interest income greater than $1,500, retirement income and the 1099 for Alaska residents reporting the Alaska Permanent Fund dividend, according to a press release.
The program also supports taxpayers claiming more tax credits than last time, adding the Child and Dependent Care Credit, Premium Tax Credit, Credit for the Elderly and Disabled, and Retirement Savings Contribution Credits. Last year, Direct File only covered the Earned Income Tax Credit, Child Tax Credit and Credit for Other Dependents.
Direct File also will support taxpayers claiming deductions for Health Savings Accounts, and the agency hopes to add more tax situations in coming years. For now, taxpayers who file a Schedule C, for example, buy insurance from HealthCare.gov or itemize their deductions won't be able to participate.
Will Direct File customer support give me free tax advice?
No. Customer support can help with technical issues, define tax terms and explain the forms, but they will not be able to advise you on your taxes. You'll need to consult a tax professional for that sort of help.
Live support will be available Monday through Friday from 7 a.m. to 10 p.m. ET.
How can I tell if I'm eligible to use Direct File for free?
The IRS has an eligibility checker you can use, with step-by-step questions to discover if you can use the service, and this year a new chatbot service can help talk you through it, the IRS said.
The checker tool does not require personal information and does not commit you to anything.
Who is eligible to file their taxes free with the IRS Direct File program?
You may be eligible to use Direct File if you report these items on your 2023 federal tax return:
Income
- W-2 wage income (Income from an employer)
- SSA-1099 Social Security income (Social Security benefits)
- 1099-G unemployment compensation (Unemployment compensation)
- 1099-INT interest income
- 1099-SA savings accounts (Distributions for qualified medical expenses from Health Savings Accounts)
- 1099-R retirement income (Distributions from common retirement plans) NOTE: This does not start until March 2025, and some may not be eligible.
- 1099-MISC for Alaska residents reporting the Alaska Permanent Fund Dividend
You can't use Direct File if you had other types of income, such as gig economy, rental or business income.
Credits
- Earned Income Tax Credit
- Child Tax Credit
- Credit for Other Dependents
- Child and Dependent Care Credit
- Premium Tax Credit
- Credit for the Elderly or the Disabled
- Retirement Savings Contributions Credit
Deductions
However, you won't be able to use Direct File if you itemize your deductions.
Which states are participating in the IRS Direct File program?
Direct File will be available to eligible people who lived in one of these 25 states for all of 2024: 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, and Wyoming.
Direct File works only with federal taxes. If you live in a state that has state taxes (Florida does not) you will be directed to a state-supported tax preparation and filing website after you finish your federal tax return.
When does the Direct File program start?
Direct File opened for filing on Monday, Jan. 27, 2025.
What is the difference between Direct File and IRS Free File? Can't I already file my taxes for free?
The IRS's previous free federal tax filing service, Free File, is still available for anyone who wants to use it. However, it requires third-party software and is only an option for households with an adjusted gross income of up to $84,000.
Direct File eligibility has no income limits, does not require you to download any software and was designed to be easier to understand than Free File, the IRS said. Also, not many people were using Free File. An audit conducted by the Treasury Inspector General for Tax Administration found just 2.4% of eligible tax filers in 2019 used Free File services.
Then there were the issues with the third-party companies. Intuit, the company behind TurboTax, was found to be using deceptive practices to hide its Free File page away from search engines and instead steered low-income tax filers toward their own paid services. The company was ordered to pay $141 million to customers in 2022. H&R Block left the Free File program at the end of the 2020 tax season and Intuit followed the next year.
Why did the IRS launch Direct File?
There have been movements to create a free filing system directly with the IRS for many years, although it's been an uphill battle. Republicans have fought similar measures in the past and tax filing companies, who stand to lose millions if this program is widely used, have lobbied heavily against it. A spokesperson from H&R Block, pointing out the many other free options available elsewhere, called the Direct File pilot "a solution in search of a problem."
The Inflation Reduction Act of 2022 allocated $15 million to the IRS to study the possibility of a free, direct e-file system. The results of that study, submitted to Congress last May, found that 72% of the more than 4,200 individual taxpayers surveyed would be interested in such a program.
Annual costs are expected to range from $64 million for 5 million users to $249 million for 25 million users, although a report from the nonpartisan Government Accountability Office found that the IRS cost estimates did not include start-up costs.
Do I have to use Direct File to file my taxes?
No. Direct File does not replace other options such as working with a tax professional, using the IRS Free File, using commercial software or free preparation sites with trained volunteers, or for that matter, mailing in paper returns. The IRS still recommends electronic filing to get them processed faster.
(This story was updated to add new information.)