Are you ready to take advantage of the IRS Direct File program for the upcoming tax season? More than 30 million Americans in 24 states will be eligible to use this free tax filing program in 2025. This program, which was previously only available in 12 states, is expanding to include even more filers next year.
The IRS Direct File program aims to simplify the tax filing process for taxpayers with basic tax situations. In the past, the program was limited to individuals with Form W-2 wages, Social Security retirement income, unemployment earnings, and interest of $1,500 or less. However, starting in 2025, the program will now support additional types of income, including interest income above $1,500, pension and annuity income, and Alaska Permanent Fund Dividends.
Additionally, Direct File will now also support tax credits such as the child and dependent care credit, premium tax credit for Marketplace insurance, the credit for elderly or disabled, and the retirement saver’s credit. However, filers will still need to claim the standard deduction rather than itemize their tax breaks in order to participate in the program.
Furthermore, the IRS is gradually expanding the scope of the Direct File program to include more common tax situations that impact working families. This includes support for above-the-line deductions for expenses like student loan interest, educator expenses, and health savings account contributions.
At Extreme Investor Network, we understand the importance of maximizing your tax benefits and saving money where you can. Stay tuned for more updates and insights on personal finance strategies to help you make the most of your money. Subscribe to our newsletter to stay informed and empowered in your financial journey.