The IRS will permanently introduce a free Direct File tax-filing service in 2025

The Internal Revenue Service announced Thursday that its experimental Direct File free tax-filing option for simpler tax returns will become permanent next year.

The IRS and Treasury Department said in a release that 140,000 filers claimed more than $90 million in refunds and saved $5.6 million in filing costs under their Direct File pilot program, which launched earlier this year.

“After a successful pilot, we are making Direct File permanent and inviting all 50 states to offer this free filing option to their residents. The Treasury Department and IRS look forward to working with states to expand Direct File to Americans across the country,” said U.S. Secretary of the Treasury Janet L. Yellen in a statement.

Direct File is for W2 and Social Security filers who take the standard deduction. Gig labor and other business returns are ineligible.

Direct File does not replace filing services or require government participation.

“President Biden is focused on lowering costs and making the tax system fairer for Americans, and that includes providing a free and simple way to file taxes, with no expensive and unnecessary filing fees and no upselling," National Economic Advisor Lael Brainard said in a statement.

Brainard praised Biden, noting that the administration's "investment in modernizing the IRS is already yielding results. We eagerly anticipate this resource becoming accessible to more Americans nationwide."